Net Income Per Share

3 Months Ended

Apr. 03, 2026

Net income per share — basic and diluted, were computed as follows (in thousands, except per share amounts):


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income	$	210,467	$	159,616
Denominator:
Weighted-average common shares outstanding — basic	258,329		278,804
Dilutive securities	8,993		9,373
Weighted-average common shares outstanding — diluted	267,322		288,177

Net income per share — basic	$	0.81	$	0.57
Net income per share — diluted	$	0.79	$	0.55

Basic net income per share is computed using the weighted-average number of common shares outstanding during the periods. The diluted net income per share is computed using the weighted-average number of common shares outstanding and dilutive potential common shares outstanding during the periods. Dilutive common shares outstanding include the dilutive effect of in-the-money options, unvested RSUs (including market condition-based RSUs), unvested PSUs when the performance condition is met and ESPP contributions. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method.

Certain potential common shares were excluded from our calculation of weighted-average common shares outstanding — diluted because either they would have had an anti-dilutive effect on net income per share or they were related to shares from PSUs or from market condition-based RSUs that were contingently issuable, and the contingency had not been satisfied at the end of the reporting period.

The weighted-average potential common shares excluded from our calculation were as follows (in thousands):


	Three Months Ended March 31,
	2026	2025
Anti-dilutive securities and contingently issuable shares excluded	2,940	1,546