Earnings per share (EPS)
Earnings per share (EPS) is a company’s net profit divided by its shares outstanding — the profit attributable to each single share.
Earnings per share (EPS) is net income divided by the number of shares outstanding. If a company earns $2 billion and has 1 billion shares, its EPS is $2. It is the "E" in the P/E ratio and the single most-watched profitability figure, because it expresses profit on a per-share basis that shareholders can compare over time.
EPS can be reported as "basic" (using current shares) or "diluted" (assuming options and convertibles are exercised, which lowers it), and companies distinguish GAAP EPS from adjusted "non-GAAP" figures that exclude certain costs. Rising EPS is generally good, but it can be flattered by share buybacks that shrink the share count rather than by the business growing.
stocks-llm grounds profitability in real reported figures and dated fundamentals; it never invents an EPS number. Negative EPS means the company lost money — a distinct situation from a small positive figure.
See more terms in the stocks-llm glossary.
Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.