Net Income Per Share

3 Months Ended

Feb. 02, 2025

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period.

Potentially dilutive shares outstanding include the dilutive effect of unvested restricted stock units (“RSUs”) and employee stock purchase plan (“ESPP”) rights (collectively referred to as “equity awards”). Potentially dilutive shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share.

The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for purchasing shares under the ESPP and the amount of stock-based compensation expense for future service that we have not yet recognized are collectively assumed to be used to repurchase shares.

The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented:


	Fiscal Quarter Ended
	February 2, 2025		February 4, 2024

	(In millions, except per share data)
Numerator:
Income from continuing operations	$	5,503	$	1,274
Income from discontinued operations, net of income taxes	—		51


Net income	$	5,503	$	1,325

Denominator:
Weighted-average shares outstanding - basic	4,695		4,517
Dilutive effect of equity awards	141		149
Weighted-average shares outstanding - diluted	4,836		4,666




Basic income per share:
Income per share from continuing operations	$	1.17	$	0.28
Income per share from discontinued operations	—		0.01
Net income per share	$	1.17	$	0.29

Diluted income per share:
Income per share from continuing operations	$	1.14	$	0.27
Income per share from discontinued operations	—		0.01
Net income per share	$	1.14	$	0.28