Earnings Per Share (EPS)

Profitability

Updated Apr 2026 • Has calculator

The portion of a company's profit allocated to each outstanding share.

What is EPS?

Earnings per share (EPS) divides a company's net income — after subtracting any preferred dividends — by the weighted-average number of diluted shares outstanding, expressing profitability on a per-share basis. Diluted EPS is the most conservative form because it accounts for all potential shares from stock options, warrants, and convertible securities. Investors use EPS to compare profitability across companies regardless of share count, and it serves as the denominator in the widely used price-to-earnings (P/E) ratio.

Formula

EPS = (Net Income − Preferred Dividends) ÷ Diluted Shares

Worked Example

FY2024

Step 1 Net income: $93,736M

Step 2 Preferred dividends: $0

Step 3 Diluted shares: 15,408M

Step 4 EPS = $93,736M ÷ 15,408M = $6.08

Step 5 → Apple earned $6.08 in net profit for every diluted share

Source: Apple Annual Report FY2024 (2024-11-01)

Calculate EPS

Net Income

Net income attributable to common shareholders (USD millions)

Preferred Dividends

Preferred dividends paid (USD millions); enter 0 if none

Diluted Shares Outstanding

Weighted-average diluted shares (millions)

Diluted EPS

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Not investment advice.

How to Interpret EPS

< 0

Negative — company reporting a net loss

0 – 1

Low — minimal per-share earnings

1 – 5

Moderate — growing profitability

> 5

Strong — well-established earnings power

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Sources