EPS growth

EPS growth measures the year-over-year change in diluted earnings per share. It is the bottom-line growth rate that drives shareholder return in any environment where valuation multiples are stable, and it captures the combined effect of revenue growth, margin change, share-count change (buybacks), and tax-rate change. EPS growth can diverge meaningfully from revenue growth: a company growing revenue 5% but expanding margins 200 basis points and buying back 3% of shares can produce 15% EPS growth from a flat-to-modest top line. Conversely, a company growing revenue 20% but issuing equity to fund the growth and pre-IPO compensation overhang can produce single-digit EPS growth despite the headline acceleration. We track EPS growth alongside revenue growth and operating-margin change, with an explicit decomposition documented in the appendix of every report so the source of growth is transparent. Forward EPS-growth estimates from analyst consensus are the input to PEG calculations and forward-earnings DCFs.