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Earnings per share, basic and diluted
What EPS measures, why diluted EPS is a little lower than basic, and why the share count matters as much as the profit.
The short answer
Earnings per share (EPS) is a company's profit divided by the number of its shares: the slice of a year's net income that belongs to one share. Apple earned net income of $112.0B in fiscal 2025 with an average of 15.00B diluted shares, for diluted EPS of $7.46.
The formula
EPS = (net income − preferred dividends) ÷ weighted average shares
Two details matter. The profit is what belongs to common shareholders, so preferred dividends come out first. And the share count is an average over the year, weighted by how long each share was outstanding, because companies issue and buy back shares as the year goes on.
Basic and diluted EPS
Basic EPS divides by the shares actually outstanding. Diluted EPS also counts shares that could be created from stock options, restricted stock units, warrants and convertible bonds, if turning them into shares would lower EPS. Diluted EPS is never higher than basic EPS when a company is profitable.
For most large companies the gap is a cent or two. It's wider at Tesla, where stock options and other awards are a big part of pay: fiscal 2025 basic EPS was $1.18 on 3.23B average shares, and diluted EPS was $1.08 on 3.53B, about 8% lower.
Source: Tesla 10-K for fiscal 2025, filed Jan 29, 2026
The share count matters as much as the profit
EPS can grow faster or slower than net income, depending on what happens to the number of shares. Apple has been buying back its own stock. From fiscal 2023 to fiscal 2025, its net income rose 15.5%, from $97.0B to $112.0B. Its diluted share count fell 5.1%, from 15.81B to 15.00B. Diluted EPS rose 21.7%, from $6.13 to $7.46.
The opposite happens when a company issues lots of new shares: net income can rise while EPS stays flat. Share buybacks covers how this works.
Source: Apple 10-K for fiscal 2025, filed Oct 31, 2025
Why EPS isn't always net income ÷ shares
Dividing Citigroup's fiscal 2025 net income of $14.3B by its 1.87B diluted shares gives about $7.64. The diluted EPS Citigroup reports is $6.99. The difference is mostly preferred stock: dividends promised to preferred shareholders come out of the profit before anything is counted for common shareholders. Many large banks have preferred stock, so the gap shows up there most.
Source: Citigroup 10-K for fiscal 2025, filed Feb 20, 2026
EPS when there's a loss
When a company loses money, its diluted EPS equals its basic EPS. Counting extra shares from options would spread the loss more thinly and make the loss per share look smaller, so the rules leave them out. Intel's fiscal 2024 basic and diluted EPS were both −$4.38.
Source: Intel 10-K for fiscal 2025, filed Jan 23, 2026
Diluted and basic EPS for 98 companies
Latest fiscal year from each company's 10-K, sorted by diluted EPS. EPS depends on how many shares a company has, so a higher EPS doesn't mean a bigger or more profitable company: compare EPS over time for one company, not across companies.
Not listed: Berkshire Hathaway, Visa (these companies report EPS by share class or in a way the table can't show on one line; see each company's 10-K).
Try it yourself
The P/E calculator loads diluted or basic EPS for any company in the table and divides a share price you type by it. What a P/E ratio is explains the result.
Common questions
What is the difference between basic and diluted EPS?
Basic EPS divides profit by the shares outstanding. Diluted EPS adds shares that options, restricted stock and convertible securities could create. Tesla's fiscal 2025 basic EPS was $1.18 and its diluted EPS was $1.08. Source: Tesla 10-K for fiscal 2025.
Is a higher EPS better?
Not when comparing companies. EPS depends on the share count, which is set by each company's history: a company with fewer, pricier shares has a higher EPS than an identical company with more shares. Changes in one company's EPS over time are more informative.
Why can EPS grow faster than net income?
Because the share count can shrink. Apple's net income rose 15.5% from fiscal 2023 to fiscal 2025 while diluted EPS rose 21.7%, as buybacks cut the diluted share count 5.1%. Source: Apple 10-K for fiscal 2025.
Where is EPS in a 10-K?
At the bottom of the income statement in Item 8, Financial Statements, with a note that shows how the share counts were worked out. Quarterly EPS is in each 10-Q, and companies also report it in the earnings release they file on Form 8-K.
What is adjusted EPS?
A figure some companies publish that leaves out items they consider unusual, such as restructuring charges or gains on investments. It isn't defined by accounting rules, so each company's version differs. Every EPS figure on Ticker Sage is the reported (GAAP) number from the 10-K.
Disclosures
- Editor holdings
- The editor holds shares of Tesla (TSLA) in a long-term retirement account. The editor holds no position in any other company named on this page. As of Oct 25, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Oct 26, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.