Summary
EPS Growth measures the percentage increase or decrease in Earnings Per Share compared with a previous period. It shows whether profit attributable to each share is increasing over time.
This metric is closely followed because EPS is linked to valuation and shareholder returns.
Why it matters
EPS Growth helps investors assess whether earnings are improving on a per-share basis. This is important because changes in the number of shares can affect how much profit belongs to each share.
Sustained EPS growth is often viewed as a positive sign for long-term performance.
How it is calculated
EPS Growth = Current EPS − Previous EPS ÷ Previous EPS × 100
How to read it
Positive EPS Growth means earnings per share increased. Negative EPS Growth means earnings per share declined.
Investors should review EPS growth together with revenue growth, net income growth, margins, dividends, and valuation.
When it may not be available
EPS Growth may not be shown when prior EPS data is unavailable or when the previous EPS value is zero.