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EMetrics & moneyAlso EPSUpdated 2 Nov 2026

Earnings per share (EPS)

Company's net income divided by the number of outstanding shares.

Definition

Earnings per share (EPS) is the company's net income divided by the number of outstanding shares. Treat it as a number you can compute and argue about, not a slide decoration. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

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In the room

How the word shows up in a real conversation.

You know Earnings per share (EPS) is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Company's net income divided by the number of outstanding shares.

Common mistake

Using Earnings per share (EPS) as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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