Glossary
Earnings per share (EPS)
Net income divided by the number of shares, reported as basic and diluted.
Earnings per share (EPS) is net income divided by the number of shares. It answers a simple question: how much profit did the company make for each share?
Companies report two versions. Basic EPS uses the average number of shares outstanding during the period. Diluted EPS adds the shares that stock options, restricted stock units and convertible securities could turn into, so it is the same or lower. Diluted is the one most often quoted.
Microsoft reported net income of $133.7B for fiscal 2026 and 7.45B diluted shares on average. Divide one by the other and you get about $17.95. The 10-K reports diluted EPS of $17.95.
Longer explainer: Earnings per share, basic and diluted
Related terms: P/E ratio, Shares outstanding
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Disclosures
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- The editor holds no position in any company named on this page. As of Nov 11, 2026.
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- Sources
- The SEC filings linked next to each figure.
- Last updated
- Nov 11, 2026
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