Match the EPS label to its same-period weighted-average share count. This is not a GAAP-versus-adjusted comparison or a per-share payment.
| EPS basis | Weighted-average shares (millions) | Reported EPS ($ per share) |
|---|---|---|
| Basic | 7,426 | 4.93 |
| Diluted | 7,446 | 4.92 |
What the two labels mean
Basic EPS uses weighted-average common shares. Diluted EPS adds potential shares that reduce EPS under the issuer method; Microsoft identifies stock options and awards and uses the treasury-stock method. Neither EPS figure is a dividend or guaranteed return.
Recheck one reported quarter
For the three months ended September 30, 2026, Microsoft reported $36,629 million in net income. Dividing the rounded inputs gives 36,629 / 7,426 ≈ $4.93 basic and 36,629 / 7,446 ≈ $4.92 diluted. Millions of dollars divided by millions of shares gives dollars per share. This is our arithmetic check, not a new issuer figure.
Use matching periods and labels
The FY2026 annual report explains the method; our example uses FY2027 Q1. Match period, numerator, EPS basis, denominator and rounding before comparing another filing. The denominator difference does not count shares newly issued that quarter. This calculation does not establish valuation.
Before recalculating EPS
- Match reporting period and units.
- Use the denominator for that EPS label.
- Treat calculations from rounded inputs as approximations.
Sources & scope
- Microsoft — FY2027 Q1 earnings release ↗
- Microsoft — 2026 Annual Report, Note 2: Earnings per Share ↗
AI-assisted explainer checked against Microsoft’s earnings release and annual report. The review date is not an announcement date.