TERADYNE, INC Earnings Per Share Disclosure
P. NET INCOME PER COMMON SHARE
The following table sets forth the computation of basic and diluted net income per common share:
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
(in thousands, except per share amounts) |
|
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Net income for basic and diluted net income per share |
|
$ |
554,047 |
|
|
$ |
542,372 |
|
|
$ |
448,752 |
|
Weighted average common shares-basic |
|
|
159,119 |
|
|
|
159,083 |
|
|
|
154,310 |
|
Effect of dilutive potential common shares: |
|
|
|
|
|
|
|
|
|
|||
Convertible note hedge warrant shares (1) |
|
|
— |
|
|
|
3,563 |
|
|
|
8,897 |
|
Restricted stock units |
|
|
572 |
|
|
|
651 |
|
|
|
423 |
|
Stock options |
|
|
14 |
|
|
|
11 |
|
|
|
34 |
|
Employee stock purchase rights |
|
|
14 |
|
|
|
6 |
|
|
|
7 |
|
Incremental shares from assumed conversion of convertible notes (2) |
|
|
— |
|
|
|
— |
|
|
|
633 |
|
Dilutive potential common shares |
|
|
600 |
|
|
|
4,231 |
|
|
|
9,994 |
|
Weighted average common shares-diluted |
|
|
159,719 |
|
|
|
163,314 |
|
|
|
164,304 |
|
Net income per common share-basic |
|
$ |
3.48 |
|
|
$ |
3.41 |
|
|
$ |
2.91 |
|
Net income per common share-diluted |
|
$ |
3.47 |
|
|
$ |
3.32 |
|
|
$ |
2.73 |
|
The computation of diluted net income per common share for 2025 and 2024 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.1 million shares because the effect would have been anti-dilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Mar 2, 2020 | |
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.