Earnings Per Share
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (shares in thousands):
Year Ended December 31, 
202520242023
Numerator:
Net income available to common stockholders$2,494 $2,575 $2,424 
Denominator:
Denominator for basic earnings per share—weighted-average common shares64,43966,34568,470
Effect of dilutive securities:
Employee stock options124
Restricted stock units164 220 236 
Denominator for diluted earnings per share—adjusted weighted-average common shares64,60466,56768,710
Basic earnings per share$38.71 $38.82 $35.40 
Diluted earnings per share$38.61 $38.69 $35.28 

Historical Timeline

Fiscal YearFiled
2025Jan 28, 2026Showing above
2024Jan 29, 2025
2023Jan 24, 2024
2022Jan 25, 2023
2021Jan 26, 2022
2020Jan 27, 2021
2019Jan 29, 2020
2018Jan 23, 2019
2017Jan 24, 2018
2016Jan 25, 2017
2015Jan 27, 2016

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.