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Term 045 of 1413
▤1 min read▶Two voices★Investing

Adjusted earnings.

Adjusted earnings are profit after a company removes items it calls one-time or unusual, so the number is chosen by the company, not by accounting rules.
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Adjusted earnings
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In plain English

Standard profit follows a fixed rulebook called GAAP (Generally Accepted Accounting Principles). Adjusted earnings start from that number and then add back or strip out things the company argues do not reflect its normal operations, like restructuring costs or a one-time charge. The adjusted figure is often higher than the standard one, and it is usually the number a company puts in its headline. It can be a fair read on the underlying business, or it can flatter a weak quarter, and the report shows both so you can compare them.

Most useful ages
20 to 65

01Why it matters

When a company leads with an adjusted number, the standard GAAP figure sits next to it. A small gap means the adjustments are minor. A large gap means the company's preferred number and the rulebook's number disagree, and it is worth knowing why.

02The math, step by step

A company reports standard profit of $0.90 per share but leads with adjusted earnings of $1.10, after adding back a one-time restructuring charge. The $0.20 difference is the adjustment, and both numbers appear in the same report.

03What this is NOT

Do not confuse with The official profit number

Adjusted earnings are not the official profit. They start from the standard GAAP number and then add back or remove items the company chose, so the two can differ, and the report shows both.

04Receipts

Every figure on this page is sourced to a primary document. Tap to open the original.

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Plain-English answers from our glossary. Receipts included. Never advice.

Educational tool. Answers come only from ClearMoneySchool's published glossary and are not advice. Why we never give advice

Last updated July 18, 2026 · Drafted with AI assistance, not yet reviewed by a person