Growth

EPS Growth

At a glance

How many % earnings per share (EPS) rose versus the same period a year earlier — the growth pace of the earnings belonging to shareholders.

EPS growth = (this quarter's EPS − year-ago quarter's EPS) ÷ |year-ago quarter's EPS| × 100

A high EPS growth rate means profit per share is growing quickly.

In plain terms

If revenue growth is "how much more we're selling," EPS growth is "how much more profit one share earns compared with a year ago."

It's the growth rate that feels closest to home for a shareholder. It reflects not just the company's total profit but also the share count, showing how fast "the profit behind my one share" is growing.

What it tells you

Over long stretches, share prices tend to follow earnings per share (EPS), so EPS growth is often cited as a driver of long-term prices.

If revenue is rising but EPS isn't, it may mean costs are rising faster, or the share count is growing and thinning out each shareholder's portion.

Formula

EPS growth = (this quarter's EPS − year-ago quarter's EPS) ÷ |year-ago quarter's EPS| × 100

What high or low means

A high EPS growth rate means profit per share is growing quickly.

A single quarter can be swayed by one-time items and differ from the multi-quarter trend, and if the prior year's EPS was a loss, the growth rate is distorted and means little.

Caution

EPS growth can come not from rising profit but from a shrinking share count due to buybacks. Looking at it alongside revenue and net income growth shows whether it's "real business growth."

When the prior-year base is low (right after a loss, or the year following a temporary slump), the growth rate looks larger than it really is.

If a one-time gain (such as an asset sale) makes a particular quarter's EPS jump, the growth rate jumps with it, so what the growth rate means depends on where it came from.

Metrics to read alongside

EPS (Earnings Per Share)

EPS growth shows how much EPS increases over time. Viewed together with EPS itself, you can gauge both the level and the pace of growth.

Revenue Growth

Placing revenue growth and EPS growth side by side shows whether top-line growth carries through to actual per-share profit growth (or leaks away into costs and dilution).

Share Buyback (Buyback)

When EPS rises, the size of buybacks tells you whether it came from higher profit or from a smaller share count.

See it in real stocks

Search US stocks on Stocklore to see SEC-filing-based financial metrics alongside the sector benchmark.

GS Goldman Sachs Group SBUX Starbucks Corp ZS Zscaler, Inc.CVR ROK Rockwell Automation, Inc.WM Waste Management, Inc.Search stocks →

Exactly how Stocklore computes this metric (formula, thresholds, SEC source) is on the methodology page.

This explanation is for information and reference only and is not a recommendation to buy or sell any security. Investment decisions and their consequences are your own.