Note 6: Earnings Per Share
The following table sets forth the computation of basic earnings per share and diluted earnings per share under the two-class method. | | | | | | | | | | | | | | | | | |
| | Year Ended April 30, |
| | 2025 | | 2024 | | 2023 |
| Net income (loss) | $ | (1,230.8) | | | $ | 744.0 | | | $ | (91.3) | |
| Less: Net income (loss) allocated to participating securities | (0.1) | | | 0.2 | | | (0.1) | |
| Net income (loss) allocated to common stockholders | $ | (1,230.7) | | | $ | 743.8 | | | $ | (91.2) | |
| Weighted-average common shares outstanding | 106.4 | | | 104.1 | | | 106.2 | |
| Add: Dilutive effect of stock options | — | | | 0.1 | | | — | |
| Weighted-average common shares outstanding – assuming dilution | 106.4 | | | 104.2 | | | 106.2 | |
| Net income (loss) per common share | $ | (11.57) | | | $ | 7.14 | | | $ | (0.86) | |
| Net income (loss) per common share – assuming dilution | $ | (11.57) | | | $ | 7.14 | | | $ | (0.86) | |
The following table sets forth the computation of diluted earnings per share under the treasury stock method.
| | | | | | | | | | | | | | | | | |
| Year Ended April 30, |
| 2025 | | 2024 | | 2023 |
| Net income (loss) | $ | (1,230.8) | | | $ | 744.0 | | | $ | (91.3) | |
| Weighted-average common shares outstanding – assuming dilution: | | | | | |
| Weighted-average common shares outstanding | 106.4 | | | 104.1 | | | 106.2 | |
| Add: Dilutive effect of stock options | — | | | 0.1 | | | — | |
| Add: Dilutive effect of restricted shares, restricted stock units, and performance units | — | | | 0.2 | | | — | |
| Weighted-average common shares outstanding – assuming dilution | 106.4 | | | 104.4 | | | 106.2 | |
| Net income (loss) per common share – assuming dilution | $ | (11.57) | | | $ | 7.13 | | | $ | (0.86) | |
We computed basic earnings per share under the two-class method for 2025, 2024, and 2023, due to certain unvested common shares that contained non-forfeitable rights to dividends (i.e., participating securities) during these periods. Further, we computed diluted earnings per share under the two-class method and treasury stock method to determine the method that was most dilutive, in accordance with FASB ASC 260, Earnings Per Share. In 2025 and 2023, we recognized a net loss, and as a result, excluded the anti-dilutive effect of stock-based awards from the computation of diluted earnings per share. Therefore, in 2025 and 2023, diluted earnings per share was computed under the two-class method. In 2024, the computation of diluted earnings per share was more dilutive under the treasury stock method.
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.