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Valuation

EPS (Earnings Per Share)

A company's net income divided by its outstanding shares.

In depth

EPS measures profitability on a per-share basis, allowing comparison across companies of different sizes. "Diluted EPS" includes the dilutive effect of stock options and convertible securities. "Adjusted" or "non-GAAP" EPS strips out one-time items management deems non-recurring. Beat/miss vs. analyst consensus drives short-term stock moves.

Example

Company with $1B in profit and 200M shares outstanding has EPS of $5.

Frequently asked about EPS (Earnings Per Share)

What is EPS (Earnings Per Share)?

A company's net income divided by its outstanding shares. EPS measures profitability on a per-share basis, allowing comparison across companies of different sizes. "Diluted EPS" includes the dilutive effect of stock options and convertible securities. "Adjusted" or "non-GAAP" EPS strips out one-time items management deems non-recurring. Beat/miss vs. analyst consensus drives short-term stock moves.

Why does EPS (Earnings Per Share) matter for investors?

In valuation, EPS (Earnings Per Share) is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

Can you give an example of EPS (Earnings Per Share)?

Company with $1B in profit and 200M shares outstanding has EPS of $5.

Recent news mentioning EPS (Earnings Per Share)

Adobe Stock's Turnaround Keeps Getting Pushed Out: AI Threats and Leadership Transition Keep ADBE at Hold

Adobe stock persists at new lows as AI foundation model competition commoditizes Creative Cloud and a leadership transition delays Firefly monetization clarity, keeping ADBE at a Hold rating.

Jun 14, 2026

Progressive Corporation: Exceptional Market-Share Gains Make PGR Stock a Buy Despite EPS Dip

SeekingAlpha analyst rates Progressive Corporation PGR a buy on exceptional market share and underwriting strength

Jun 14, 2026

Germany's Bundesbank Signals More Rate Hikes as Energy Crisis Keeps Inflation Elevated

Germany's Bundesbank supports further ECB rate hikes amid the energy crisis, creating headwinds for German Mittelstand debt costs, corporate borrowing spreads, and euro-sensitive export competitiveness.

Jun 13, 2026

Adobe Q2 EPS $5.96 on $6.62B Revenue Beats Estimates; Freemium Pivot Triggers 6% Stock Crash

Adobe reported Q2 adjusted EPS of $5.96 on revenue of $6.62 billion, beating expectations with raised full-year guidance.

Jun 12, 2026

Related terms

P/E Ratio (Price-to-Earnings)

A stock's price divided by its earnings per share — the most common valuation metric.

EPS (Earnings Per Share)

A company's net income divided by its outstanding shares.

Guidance

Management's forward-looking projections for revenue, earnings, or other metrics.

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