MICROSOFT CORP Earnings Per Share Disclosure
NOTE 2 — EARNINGS PER SHARE
Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.
The components of basic and diluted EPS were as follows:
(In millions, except per share amounts) |
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Year Ended June 30, |
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2025 |
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2024 |
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2023 |
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Net income available for common shareholders (A) |
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$ |
101,832 |
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$ |
88,136 |
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$ |
72,361 |
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Weighted average outstanding shares of common stock (B) |
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7,433 |
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7,431 |
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7,446 |
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Dilutive effect of stock-based awards |
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32 |
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38 |
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26 |
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Common stock and common stock equivalents (C) |
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7,465 |
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7,469 |
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7,472 |
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Earnings Per Share |
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Basic (A/B) |
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$ |
13.70 |
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$ |
11.86 |
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$ |
9.72 |
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Diluted (A/C) |
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$ |
13.64 |
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$ |
11.80 |
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$ |
9.68 |
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Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 30, 2025 | Showing above |
| 2024 | Jul 30, 2024 | |
| 2023 | Jul 27, 2023 | |
| 2022 | Jul 28, 2022 | |
| 2021 | Jul 29, 2021 | |
| 2020 | Jul 30, 2020 | |
| 2019 | Aug 1, 2019 | |
| 2018 | Aug 3, 2018 | |
| 2017 | Aug 2, 2017 | |
| 2016 | Jul 28, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.