PayPal Holdings, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net income (loss) | $ | 5,233 | $ | 4,147 | $ | 4,246 | |||||||||||
| Denominator: | |||||||||||||||||
Weighted average shares of common stock - basic | 959 | 1,029 | 1,103 | ||||||||||||||
| Dilutive effect of equity incentive awards | 9 | 10 | 4 | ||||||||||||||
Weighted average shares of common stock - diluted | 968 | 1,039 | 1,107 | ||||||||||||||
| Net income (loss) per share: | |||||||||||||||||
| Basic | $ | 5.46 | $ | 4.03 | $ | 3.85 | |||||||||||
| Diluted | $ | 5.41 | $ | 3.99 | $ | 3.84 | |||||||||||
| Common stock equivalents excluded from net income (loss) per diluted share because their effect would have been anti-dilutive or potentially dilutive | 11 | 9 | 21 | ||||||||||||||
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.