Earnings per share (EPS)
A company's profit divided by the number of its shares.
In short
As of 8 October 2026Earnings per share (EPS) is a company's annual profit divided by the number of its shares. A firm earning 1 billion euros with 200 million shares has EPS of 5 euros. The figure is the basis for the P/E ratio. Share buybacks can raise EPS even when total profit stays the same.
Earnings per share (EPS, German: Gewinn je Aktie) shows how much of the annual profit falls on each single share. It is the basis of the P/E ratio: share price divided by earnings per share.
Companies report EPS in their quarterly results. Analysts compare it with their expectations, and surprises often move the price. Note: a share buyback reduces the number of shares and can lift EPS even if total profit does not grow.
Example: a company earns 1 billion euros and has 200 million shares. EPS is 5 euros. If the share costs 100 euros, the P/E ratio is 20. The basics are covered in what is a stock?
Related terms
As of 8 October 2026 · Educational content, not investment or tax advice.