NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2025

Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding for the period. The dilutive effect of outstanding equity incentive awards is reflected in diluted net income (loss) per share by application of the treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive common shares. During periods when we report net loss, diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items would decrease the net loss per share.

The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated:


	Year Ended December 31,
	2025		2024		2023
	(In millions, except per share amounts)
Numerator:
Net income (loss)	$	5,233	$	4,147	$	4,246
Denominator:
Weighted average shares of common stock - basic	959		1,029		1,103
Dilutive effect of equity incentive awards	9		10		4
Weighted average shares of common stock - diluted	968		1,039		1,107
Net income (loss) per share:
Basic	$	5.46	$	4.03	$	3.85
Diluted	$	5.41	$	3.99	$	3.84
Common stock equivalents excluded from net income (loss) per diluted share because their effect would have been anti-dilutive or potentially dilutive	11		9		21

PayPal Holdings, Inc. 10-K