Net Income Per Share

6 Months Ended

May 05, 2024

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 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				Two Fiscal Quarters Ended
	May 5, 2024		April 30, 2023		May 5, 2024		April 30, 2023

	(In millions, except per share data)
Numerator:
Income from continuing operations	$	2,121	$	3,481	$	3,395	$	7,255
Income from discontinued operations, net of income taxes	—		—		51		—


Net income	$	2,121	$	3,481	$	3,446	$	7,255

Denominator:
Weighted-average shares outstanding - basic	465		415		458		417
Dilutive effect of equity awards	15		12		15		11
Weighted-average shares outstanding - diluted	480		427		473		428




Basic income per share:
Income per share from continuing operations	$	4.56	$	8.39	$	7.41	$	17.40
Income per share from discontinued operations	—		—		0.11		—
Net income per share	$	4.56	$	8.39	$	7.52	$	17.40

Diluted income per share:
Income per share from continuing operations	$	4.42	$	8.15	$	7.18	$	16.95
Income per share from discontinued operations	—		—		0.11		—
Net income per share	$	4.42	$	8.15	$	7.29	$	16.95