Earnings per Share
The following table sets forth the computation of basic and diluted earnings per share:
Year Ended April 30,
(In millions, except per share amounts)202620252024
Numerator:
Net income$1,325 $1,553 $1,572 
Denominator:
Denominator for basic earnings per share—weighted-average common shares420,382,197435,873,592436,988,043
Effect of dilutive securities:
Employee share options and share plan awards 624,8711,078,3282,349,673
Denominator for diluted earnings per share—weighted-average common shares
421,007,068436,951,920439,337,716
Basic earnings per share$3.15 $3.56 $3.60 
Diluted earnings per share$3.15 $3.55 $3.58 
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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.