Stock AnalizWhat is earnings per share (EPS)?
Updated November 15, 2026 · examples use today’s data
Earnings per share is a company's net profit divided by the number of shares outstanding. It answers a simple question: how much profit belongs to each share you own?
A real example
Over its last reported twelve months Apple made $132.2 billion of net income on $478.8 billion of revenue. Divided across its shares, that is about $8.98 per share.
Basic vs. diluted EPS
Basic EPS uses the shares that exist today. Diluted EPS also counts shares that could be created from stock options, restricted stock and convertible bonds. Diluted EPS is the more conservative number and the one used in the P/E ratio.
GAAP vs. adjusted EPS
GAAP EPS follows accounting rules. "Adjusted" or "non-GAAP" EPS is the company's own version, usually excluding stock-based pay, amortization and one-off items. Analyst estimates and earnings headlines usually refer to adjusted EPS, so when you compare a result with a forecast, make sure you compare like with like.
Why EPS moves prices
Over the long run, a stock price follows earnings per share. Companies grow EPS by growing profit and by buying back shares, which spreads the same profit over fewer shares.
Frequently asked questions
Why is EPS growing faster than net income?
Because the company is buying back shares. Fewer shares means a bigger slice of the profit for each one.
What happens to EPS after a stock split?
It is divided by the split ratio; after a 4-for-1 split, $8 of EPS becomes $2. Nothing changes for the shareholder, and our historical figures are restated so charts stay comparable.
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Educational content, not investment advice. Figures in the examples come from company filings and market prices and update automatically.