Note 4. Earnings per share

Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options, restricted stock units, and performance stock units.

The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share:

 

 

Year Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net earnings

 

$

442,111

 

 

$

372,971

 

 

$

232,368

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

 

59,563

 

 

 

60,076

 

 

 

59,908

 

Dilutive effect of stock options; restricted and performance stock units

 

 

1,901

 

 

 

2,008

 

 

 

1,574

 

Diluted shares outstanding

 

 

61,464

 

 

 

62,084

 

 

 

61,482

 

Income per common share:

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

7.42

 

 

$

6.21

 

 

$

3.88

 

Diluted earnings per share

 

$

7.19

 

 

$

6.01

 

 

$

3.78

 

The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:

 

 

Year Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Options

 

 

25

 

 

 

63

 

 

 

561

 

Weighted-average option price

 

$

186.19

 

 

$

135.26

 

 

$

114.88

 

The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following:

 

 

Year Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Weighted-average treasury stock shares held for deferred compensation obligations

 

 

33

 

 

 

51

 

 

 

88

 

Historical Timeline

Fiscal YearFiled
2025Nov 25, 2025Showing above
2024Nov 26, 2024
2023Nov 17, 2023
2022Nov 18, 2022
2021Nov 19, 2021
2020Nov 20, 2020
2019Nov 25, 2019
2018Nov 13, 2018
2017Nov 13, 2017
2016Nov 16, 2016
2015Nov 12, 2015

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.