Net Income Per Common Share

6 Months Ended

Jan. 02, 2026

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				Six Months Ended
	January 2, 2026		December 27, 2024		January 2, 2026		December 27, 2024
	(in millions, except per share data)
Net income from continuing operations	$	1,842	$	466	$	3,024	$	619
Dividends allocated to preferred shareholders	(5)		(4)		(10)		(8)
Income attributable to participating securities(1)	(39)		(7)		(64)		(9)
Net income from continuing operations attributable to common shareholders - basic	1,798		455		2,950		602
Net income from discontinued operations, net of taxes, attributable to common shareholders	—		126		—		460
Net income attributable to common shareholders - basic	$	1,798	$	581	$	2,950	$	1,062
Net income from continuing operations attributable to common shareholders - basic	$	1,798	$	455	$	2,950	$	602
Re-allocation of participating securities considered potentially dilutive	4		—		6		1
Net income from continuing operations attributable to common shareholders - diluted	1,802		455		2,956		603
Net income from discontinued operations, net of taxes, attributable to common shareholders	—		126		—		460
Net income attributable to common shareholders - diluted	$	1,802	$	581	$	2,956	$	1,063
Weighted average shares:
Basic	341		346		343		345
RSUs, PSUs, ESPP, and convertible notes	40		11		35		12
Diluted	381		357		378		357
Net income per common share:
Basic:
Continuing operations	$	5.27	$	1.32	$	8.60	$	1.74
Discontinued operations	—		0.36		—		1.34
Net income per common share	5.27		1.68		8.60		3.08
Diluted:
Continuing operations	4.73		1.27		7.82		1.69
Discontinued operations	—		0.36		—		1.29
Net income per common share	4.73		1.63		7.82		2.98

(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 and six months ended January 2, 2026 and December 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.