(Loss) Per Share
Basic earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, unvested restricted share units and performance-based share units and shares to be purchased under the Employee Stock Purchase Plan using the treasury stock method, as well as shares issuable in connection with the Company’s exchangeable senior notes using the “if-converted” method.
Under the treasury stock method, the dilutive effect of potentially dilutive securities is reflected in diluted net earnings per share and an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. Under the “if-converted” method, diluted earnings per share is calculated assuming that the excess value above the principal of the exchangeable notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive, which could adversely affect our diluted earnings per share.
The following table sets forth the computation of basic and diluted net income (loss) per share attributable to the shareholders of the Company:
| | | | | | | | | | | | | | | | | | | | |
| | | Fiscal Years Ended |
| (In millions, except per share data) | | June 27,
2025 | | June 28,
2024 | | June 30,
2023 |
| Numerator: | | | | | | |
| Net income (loss) | | $ | 1,469 | | | $ | 335 | | | $ | (529) | |
| Number of shares used in per share calculations: | | | | | | |
| Total shares for purposes of calculating basic net income (loss) per share | | 212 | | | 209 | | | 207 | |
| Weighted-average effect of dilutive securities: | | | | | | |
| Employee equity award plans | | 2 | | | 2 | | | — | |
| 2028 Notes if-converted shares | | 3 | | | 1 | | | — | |
| Total shares for purposes of calculating diluted net income (loss) per share | | 217 | | | 212 | | | 207 | |
| Net income (loss) per share | | | | | | |
| Basic | | $ | 6.93 | | | $ | 1.60 | | | $ | (2.56) | |
| Diluted | | 6.77 | | | 1.58 | | | (2.56) | |
for the fiscal year ended June 30, 2023
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.