Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the fiscal period. Diluted net income per share is computed by giving effect to all potential weighted average dilutive common stock, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income per share by application of the treasury stock method.

A reconciliation of the denominator used in the calculation of basic and diluted net income per share is as follows (in millions):


1	Three Months Ended April 30,
		2026		2025
Numerator:
Net income		$	2,107	$	1,541
Denominator:
Weighted-average shares outstanding for basic net income per share		868		960
Effect of dilutive securities:
Employee stock awards		3		10


Weighted-average shares outstanding for diluted net income per share		871		970

The weighted-average number of shares outstanding used in the computation of diluted net income per share does not include the effect of the following potentially outstanding common stock. The effects of these potentially outstanding shares, including the unsettled forward contract component of the ASR agreements, were not included in the calculation of diluted net income per share because the effect would have been anti-dilutive (in millions):


	Three Months Ended April 30,
		2026	2025
Employee stock awards		31	2
Unsettled component of ASR Agreements		36	0