Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock is determined using the treasury stock method.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):


	Three months ended April 30,
	2026		2025
Numerator:
Net income	$	260,936	$	228,190

Denominator:
Basic shares:
Weighted average common shares outstanding, basic	163,345		162,749
Diluted shares:
Weighted average common shares outstanding, basic	163,345		162,749
Effect of potentially dilutive common shares	2,644		3,480
Weighted average common shares outstanding, diluted	165,989		166,229
Net income per share:
Basic	$	1.60	$	1.40
Diluted	$	1.57	$	1.37

Potential common share equivalents excluded because their inclusion would be anti-dilutive are as follows (in thousands):