NOTE 2: EARNINGS PER SHARE
Basic earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the period plus additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive shares of common stock include outstanding stock options, restricted stock units (“RSUs”), contingently issuable shares, and shares to be purchased under our employee stock purchase plan.
The following table shows the computation of basic and diluted earnings per share:
 202520242023
(In millions, except per share amounts)   
Numerator:
Net income$424.0 $1,504.4 $311.3 
Denominator:
Weighted-average shares of common stock outstanding - basic
239.2 245.5 247.9 
Effect of dilutive securities2.3 1.7 1.2 
Weighted-average shares of common stock outstanding - diluted
241.5 247.2 249.1 
Basic earnings per share$1.77 $6.13 $1.26 
Diluted earnings per share$1.76 $6.09 $1.25 
Antidilutive weighted-average shares (1)
0.5 1.4 1.9 
(1)    Antidilutive stock-based awards are excluded from the calculation of diluted shares and diluted earnings per share because their impact would increase diluted earnings per share.

Historical Timeline

Fiscal YearFiled
2026Feb 25, 2026Showing above
2025Apr 25, 2025
2023Feb 26, 2024
2022Feb 17, 2023
2021Feb 26, 2021
2020Feb 28, 2020
2018Feb 22, 2019
2017Feb 27, 2018
2016Feb 24, 2017

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.