A cash dividend is taxed at 15.4% on arrival; a share cancellation shrinks the share count with no tax at all. Here is the arithmetic behind a 3.3% cancellation lifting EPS by 3.4%, plus a side-by-side after-tax table.
A buyback alone does not permanently shrink a company's share count. Using a case of 10 billion won in net income and 10 million shares, this piece calculates how buybacks and cancellations differ in shares outstanding, EPS, and voting rights.
When Alphabet’s Q2 2026 EPS beat consensus by 216% the stock still fell. A framework for separating the surprise, one-off gains, and guidance — with Alphabet’s quarter as a worked example.