HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock units, stock options, performance-based awards and shares purchased under the 2021 employee stock purchase plan.

A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows:


	For the fiscal years ended October 31
	2025		2024		2023
	In millions, except per share amounts
Numerator:
Net earnings	$	2,529	$	2,775	$	3,263
Denominator:
Weighted-average shares used to compute basic net EPS	946		979		992
Dilutive effect of employee stock plans	7		10		8
Weighted-average shares used to compute diluted net EPS	953		989		1,000
Net earnings per share:
Basic	$	2.67	$	2.83	$	3.29
Diluted	$	2.65	$	2.81	$	3.26
Anti-dilutive weighted-average stock-based compensation awards(1)	8		1		4

(1)HP excludes from the calculation of diluted net EPS stock options and restricted stock units where the assumed proceeds exceed the average market price, because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent average unrecognized compensation cost.