Note C — Basic and Diluted Earnings Per Share

 

Basic and diluted earnings per share were calculated as follows:

 

 

 

Year ended May 31,

 

In millions, except per share amounts

 

2025

 

 

2024

 

 

2023

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

 

1,657.3

 

 

$

 

1,690.4

 

 

$

 

1,557.3

 

Weighted-average common shares outstanding

 

 

 

360.2

 

 

 

 

360.3

 

 

 

 

360.4

 

Basic earnings per share

 

$

 

4.60

 

 

$

 

4.69

 

 

$

 

4.32

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

 

1,657.3

 

 

$

 

1,690.4

 

 

$

 

1,557.3

 

Weighted-average common shares outstanding

 

 

 

360.2

 

 

 

 

360.3

 

 

 

 

360.4

 

Dilutive effect of common share equivalents

 

 

 

1.8

 

 

 

 

1.8

 

 

 

 

1.9

 

Weighted-average common shares outstanding, assuming dilution

 

 

 

362.0

 

 

 

 

362.1

 

 

 

 

362.3

 

Diluted earnings per share

 

$

 

4.58

 

 

$

 

4.67

 

 

$

 

4.30

 

Weighted-average anti-dilutive common share equivalents

 

 

 

0.2

 

 

 

 

0.6

 

 

 

 

0.7

 

 

Weighted-average common share equivalents that had an anti-dilutive impact are excluded from the computation of diluted earnings per share.

Historical Timeline

Fiscal YearFiled
2025Jul 11, 2025Showing above
2024Jul 11, 2024
2023Jul 14, 2023
2022Jul 15, 2022
2021Jul 16, 2021
2020Jul 17, 2020
2019Jul 24, 2019
2018Jul 20, 2018
2017Jul 21, 2017
2016Jul 22, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.