Lear’s EPS Rose 36%: Follow the Falling Share Count

Lear’s October 30, 2026 third-quarter release reports earnings per share up 36%, while net income rose 26%. That gap is a reason to inspect the share count before describing the whole company’s profit growth.

Primary source: Lear’s Q3 2026 results and diluted-share figures

Keep the numerator and denominator together

For the three months ended October 3, 2026, net income attributable to Lear was $136.6 million, versus $108.2 million a year earlier. Weighted-average diluted shares were 49.9 million, versus 53.7 million. Reported diluted EPS was $2.74, versus $2.02. The release attributes EPS growth to higher earnings and its repurchase program.

Using those rounded inputs, profit grew about 26.2%, while the diluted share count fell about 7.1%. The EPS growth factor is approximately (136.6 ÷ 108.2) × (53.7 ÷ 49.9), or 1.359. That means roughly 36% growth. Rounded statement inputs can leave small differences from the reported per-share figures.

Why subtracting two percentages is not the full bridge

A smaller denominator increases the amount attributed to each share. The two changes combine through multiplication: first compare profits, then multiply by the inverse share-count ratio. Adding a share-count decline directly to profit growth misses that interaction.

The denominator also needs its full label. A weighted-average diluted count represents the reporting period; a share count measured at quarter-end answers a different timing question. Copy the denominator from the same statement as the earnings figure rather than substituting a convenient count from a headline.

Try a company with simple teaching numbers

Imagine a fictional business earning 100 units across 100 shares in Year 1. It earns 120 units across 90 shares in Year 2. These numbers are invented solely for this exercise.

Total profit rises 20%. Earnings per share move from 1 unit to about 1.333 units, a rise of about 33.3%. Holding the share count at 100 would instead give 1.2 units per share. This comparison isolates the denominator’s arithmetic effect; it does not estimate what the real business would have earned without a repurchase.

A useful reading check for the next earnings release

Write down the period, profit definition, profit amount, share-count definition and EPS together for both years. Compare reported profit with reported EPS, or adjusted profit with adjusted EPS. Mixing the two bases creates a calculation that neither source column intended.

For the reported-versus-adjusted comparison, follow Microsoft’s profit-growth reconciliation across both years.

Then keep the business question separate: what drove total earnings, and what changed the number of shares used in the calculation? A faster per-share growth rate alone cannot answer whether a repurchase was a good use of cash or predict a future share price. Those questions need additional evidence.