Earnings Per Share

12 Months Ended

Jul. 03, 2026

Per Share

Basic earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, unvested restricted share units and performance-based share units and shares to be purchased under the Employee Stock Purchase Plan using the treasury stock method, as well as shares issuable in connection with the Company’s exchangeable senior notes using the “if-converted” method.

Under the treasury stock method, the dilutive effect of potentially dilutive securities is reflected in diluted net earnings per share and an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. Under the “if-converted” method, diluted earnings per share is calculated assuming that the excess value above the principal of the exchangeable notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive, which could adversely affect our diluted earnings per share.

The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of the Company:


	Fiscal Years Ended
(In millions, except per share data)	July 3, 2026		June 27, 2025		June 28, 2024
Numerator:
Net income	$	3,184	$	1,469	$	335
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share	219		212		209
Weighted-average effect of dilutive securities:
Employee equity award plans	4		2		2
2028 Notes if-converted shares	6		3		1
Total shares for purposes of calculating diluted net income per share	229		217		212
Net income per share
Basic	$	14.54	$	6.93	$	1.60
Diluted	13.90		6.77		1.58

All potentially dilutive securities that could have an anti-dilutive effect on the calculation of the earnings per share have been excluded for the periods presented. The capped call transactions related to the 2028 Notes if-converted shares were excluded from the calculation of dilutive earnings per share as their effect would have been anti-dilutive. Other than the capped call, the weighted average anti-dilutive shares that were excluded from the computation of diluted net income per share were not material for the fiscal years ended July 3, 2026, June 27, 2025 and June 28, 2024