Net Income Per Common Share

3 Months Ended

Oct. 03, 2025

Earnings Per Share [Abstract]

Net Income Per Common Share

Net Income Per Common Share

The following table presents the computation of basic and diluted income per common share:

	Three Months Ended
	October 3, 2025		September 27, 2024
	(in millions, except per share data)
Net income from continuing operations	$	1,182	$	153
Dividends allocated to preferred shareholders	(5)		(2)
Income attributable to participating securities(1)	(25)		(2)
Net income from continuing operations attributable to common shareholders - basic	1,152		149
Net income from discontinued operations, net of taxes, attributable to common shareholders	—		332
Net income attributable to common shareholders - basic	$	1,152	$	481
Net income from continuing operations attributable to common shareholders - basic	$	1,152	$	149
Re-allocation of participating securities considered potentially dilutive	2		—
Net income from continuing operations attributable to common shareholders - diluted	1,154		149
Net income from discontinued operations, net of taxes, attributable to common shareholders	—		332
Net income attributable to common shareholders - diluted	$	1,154	$	481
Weighted average shares:
Basic	345		344
RSUs, PSUs, ESPP, and convertible notes	31		13
Diluted	376		357
Net income per common share:
Basic:
Continuing operations	$	3.34	$	0.43
Discontinued operations	—		0.97
Net income per common share	3.34		1.40
Diluted:
Continuing operations	3.07		0.42
Discontinued operations	—		0.93
Net income per common share	3.07		1.35

(1)     Participating securities consist of preferred stock because it participates on a pro rata basis in any dividends declared on shares of common stock.

Basic net income per common share is computed using (i) net income less (ii) dividends allocated to preferred shareholders less (iii) net income attributable to participating securities divided by (iv) basic weighted average shares outstanding. Diluted net income per common share is computed as (i) basic net income attributable to common shareholders plus (ii) diluted adjustments to income allocable to participating securities divided by (iii) diluted weighted average shares outstanding. The “if-converted” method is used to determine the dilutive impact for the convertible notes and the preferred shares. The treasury stock method is used to determine the dilutive impact of unvested equity awards.

Potentially dilutive common shares include dilutive outstanding RSUs and PSUs, rights to purchase shares of common stock under the Company’s ESPP, shares issuable in connection with the Company’s convertible notes, and Preferred Shares. For the three months ended October 3, 2025 and September 27, 2024, based on the Company’s average stock price during the period, an insignificant number of common shares subject to outstanding equity awards were anti-dilutive.