Apple Inc. (AAPL) Q3 FY2026

Business

From the FY2025 10-K, accession 0000320193-25-000079.

Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services.

Product lines

• iPhone, smartphones on iOS. The line includes iPhone 17 Pro, iPhone Air, iPhone 17, iPhone 16 and iPhone 16e.
• Mac, personal computers on macOS: laptops MacBook Air and MacBook Pro; desktops iMac, Mac mini, Mac Studio and Mac Pro.
• iPad, tablets on iPadOS: iPad Pro, iPad Air, iPad and iPad mini.
• Wearables, Home and Accessories, Apple Watch Series 11, Apple Watch SE 3 and Apple Watch Ultra 3 (watchOS); AirPods, AirPods Pro, AirPods Max and Beats headphones; Apple Vision Pro spatial computer (visionOS); Apple TV 4K (tvOS), HomePod and HomePod mini; Apple-branded and third-party accessories.

Services

• Advertising, third-party licensing arrangements plus Apple's own advertising platforms.
• AppleCare, fee-based service and support: priority technical support, access to the global authorized service network for repair and replacement, and in many countries additional coverage for accidental damage or theft and loss.
• Cloud services, storing and syncing customer content across Apple devices and Windows PCs.
• Digital content, the App Store and other platforms for discovering and downloading apps, books, music, video, games and podcasts; subscription services including Apple Arcade, Apple Fitness+, Apple Music, Apple News+ and Apple TV.
• Payment services, Apple Card (a co-branded credit card) and Apple Pay.

Segments. Apple manages the business geographically. Reportable segments are Americas (North and South America), Europe (European countries plus India, the Middle East and Africa), Greater China (China mainland, Hong Kong and Taiwan), Japan, and Rest of Asia Pacific (Australia, New Zealand and other Asian countries). Each segment sells similar hardware, software and services but is managed separately to match local customers, distribution partners and market dynamics.

Markets and distribution. Customers are primarily consumer, small and mid-sized business, education, enterprise and government. Apple sells directly through its retail and online stores and direct sales force, and indirectly through third-party cellular network carriers and other resellers. In fiscal 2025, direct channels accounted for 40% of total net sales and indirect channels 60%.

Competition. Markets are highly competitive, with aggressive price competition, downward pressure on gross margins, short product life cycles and rapid adoption of new technology. Many competitors compete primarily through aggressive pricing and very low cost structures, and by imitating Apple's products and infringing its intellectual property. Apple designs and develops nearly the entire solution for its products, hardware, operating system, software applications and related services. Apple states it holds a minority market share in the global smartphone, personal computer, tablet and wearables markets, and that some of those markets have at times shown little to no growth or contracted.

Supply of components. Most essential components are generally available from multiple sources, but certain components come from single or limited sources. Apple uses custom components not commonly used by competitors; new products often use custom components available from only one source, where initial capacity constraints may exist until suppliers' yields mature. Restrictions on international trade can increase the cost or limit the availability of products, components, rare earths and other raw materials.

R&D and intellectual property. Apple expands its offerings through R&D, licensing of intellectual property and acquisition of third-party businesses and technology. It holds a broad portfolio of patents, designs, copyrights, trademarks and trade secrets, with thousands of applications pending worldwide, but states that no single intellectual property right is solely responsible for protecting its products and that it relies primarily on the skills and abilities of its personnel.

Seasonality. Net sales are historically higher in the first fiscal quarter (holiday demand). Product introduction timing also shifts sales, as indirect channels fill with new inventory after a launch and older-product channel inventory declines ahead of one.

Human capital. Approximately 166,000 full-time equivalent employees as of September 27, 2025. Headquarters in Cupertino, California; owned and leased facilities for corporate functions, R&D, data centers and retail across the U.S. and internationally.

Risk factors

Condensed from the FY2025 10-K, accession 0000320193-25-000079, and updated by the risk factors in the FY2026 Q3 10-Q, accession 0000320193-26-000020.

Component supply and computing capacity, the most acute near-term risk. The Q3 FY2026 10-Q adds an amended risk factor: Apple is currently experiencing a period of supply constraints and rising costs for components, driven by industry supply-demand imbalances in advanced semiconductors, storage (NAND) and memory (DRAM). Apple expects these trends to intensify, with potential material adverse impact on revenue, costs, gross margin and results. Mitigating actions such as price increases may not work and may themselves reduce demand. Separately, Apple's AI and machine-learning offerings depend on access to sufficient computing resources; industry-wide demand for cloud and AI infrastructure has produced constrained supply, extended lead times and rising costs. Apple relies on third-party cloud providers in addition to its own data centers and may be unable to secure sufficient capacity on commercially reasonable terms, which could limit functionality, delay feature deployment, or raise operating costs. Over- or under-estimating requirements creates cost or unmet-demand risk in either direction.

Trade restrictions and tariffs. A significant majority of manufacturing is performed by outsourcing partners located primarily in China mainland, India, Japan, South Korea, Taiwan and Vietnam, with some U.S. sourcing. Tariffs and other trade controls can raise costs, limit product availability, force supplier and business-relationship changes, and require price increases. Restrictions can be announced with little advance notice. Beginning in the second quarter of fiscal 2025, new U.S. tariffs were announced on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the EU, with reciprocal and retaliatory measures from other countries. A U.S. Department of Commerce Section 232 investigation covers semiconductors, semiconductor manufacturing equipment and derivative products containing semiconductors.

Concentration in a single product category. Apple states plainly that it generates a significant portion of net sales from a single product category, and a decline in demand for that product could significantly impact net sales and gross margins. (iPhone was $209.6 billion of $416.2 billion in fiscal 2025, and $196.5 billion of $364.4 billion in the first nine months of fiscal 2026.)

Outsourced manufacturing and single-source suppliers. Apple relies on single-source partners in the U.S., Asia and Europe for many components and on partners primarily in Asia for final assembly of substantially all hardware. Outsourcing reduces direct control over cost, quality, quantity and flexibility. Apple generally remains responsible to the consumer for warranty and out-of-warranty service, and experiences unanticipated product defect liabilities from time to time. Violations of its supplier code of conduct occur from time to time.

Inventory and purchase-commitment risk. Apple orders components and builds inventory ahead of product announcements; manufacturing purchase obligations typically cover forecasted requirements up to 150 days. Incorrect forecasts can produce excess or insufficient components, write-downs, impairments and cancellation fees.

Product and service defects. Complex hardware, software and services can have design and manufacturing defects; component defects can create safety, environmental and personal injury risk, particularly as products enter specialized applications including health. The introduction of new and complex technologies such as artificial intelligence features can increase these risks, including exposing users to harmful or inaccurate content. Errors and vulnerabilities can be exploited by third parties.

App Store commission structure and competition regulation. This is the sharpest regulatory exposure to Apple's economics:

• Epic Games / U.S. injunction. The California District Court's 2021 Injunction barred Apple from prohibiting in-app links to outside purchasing mechanisms. On April 30, 2025, the court found Apple in violation and enjoined it from imposing any commission or fee on purchases consumers make outside an app (the "2025 Injunction"). On December 11, 2025, the Ninth Circuit upheld the 2025 Injunction in part, modified it to allow Apple to require parity in size, form and placement between its in-app purchase and external links, held that Apple can charge some commission on link-out purchases, and remanded for the district court to amend the injunction accordingly. Apple petitioned the Supreme Court on May 21, 2026; on June 30, 2026 the Supreme Court granted review of the applicable legal standard for civil contempt. Apple is seeking a stay of district court proceedings pending that decision. Apple states that if it is ultimately unsuccessful in defending its commission structure, or similar restrictions are expanded elsewhere, and its commission is narrowed or eliminated, results could be materially and adversely affected.
• EU Digital Markets Act. Two Commission noncompliance investigations. On April 23, 2025 the Commission fined Apple €500 million under Article 5(4) and issued a cease-and-desist order requiring removal of restrictions on steering users to alternative distribution channels; Apple has appealed. Preliminary findings were also issued in the Article 6(4) investigation; a final adverse determination could carry fines up to 10% of annual worldwide net sales, plus further fines for violating a cease-and-desist order. The DMA also imposes interoperability obligations requiring Apple to make certain technologies and features available to third parties for free, which Apple says increases security and privacy risk, consumes engineering resources, and has caused and may cause Apple not to launch or maintain products, services and features such as Siri AI in certain jurisdictions.
• DOJ antitrust suit. Filed March 21, 2024 in the District of New Jersey by DOJ and a number of state and district attorneys general, alleging monopolization or attempted monopolization in "performance smartphones" and "smartphones." Related private civil suits seek monetary damages. Apple believes it has substantial defenses.

Dependence on the Google search licensing arrangement. Apple earns revenue from licensing arrangements with Google and others to offer their search services on Apple platforms. Google was found to have violated U.S. antitrust laws on August 5, 2024; on September 2, 2025 the D.C. District Court ordered certain remedies, and that order was appealed by both the DOJ and Google. A reversal on appeal could impose remedies originally proposed by the DOJ, such as prohibiting Google from offering Apple commercial terms for search distribution, which Apple says could materially adversely affect its ability to earn revenue from those arrangements.

Third-party developer support and alternative distribution. Customer purchase decisions depend partly on availability of third-party apps. Apple's minority market share can make developers less inclined to develop or upgrade for its platforms. If developers shift to alternative distribution and payment methods, including direct-to-consumer models, Apple may earn a lower commission or none at all.

Third-party intellectual property and content. Products and services include technology that must be licensed from third parties, which may not be available on commercially reasonable terms. Infringement risk is exacerbated by machine learning and AI, which can involve acquiring copyrighted material for training and reproducing it in outputs. Content licensing arrangements are often short-term with no guarantee of renewal; Apple's own original content is costly and may not appeal to customers.

Privacy, data protection and online safety. Expanding and inconsistent federal, state and international personal-data laws impose substantial compliance cost. China has data processing and localization requirements that could limit Apple's ability to transfer data outside China. Additional obligations apply to minors' data and to health, biometric, financial and payment card data. New online safety laws, including mandatory age verification, require significant product modifications. Noncompliance can lead to suspension or revocation of business licenses, significant penalties and legal liability.

Cybersecurity and confidential information. Apple says it experiences malicious attacks and unauthorized-access attempts on a regular basis, and is at relatively greater risk of being targeted because of its high profile and the value of the information it holds. Attacks are expected to accelerate in frequency and sophistication and can escalate during periods of geopolitical tension. Insurance coverage may be insufficient.

Macroeconomic and currency exposure. A majority of net sales are outside the U.S., and a majority of supplier facilities are outside the U.S. Adverse macro conditions, slow growth, inflation, higher rates, currency moves, hit consumer confidence and demand, and can destabilize suppliers, carriers and resellers. Weakening foreign currencies reduce the dollar value of foreign sales and generally push Apple to raise international pricing, potentially reducing demand; strengthening foreign currencies can raise component costs. Hedging may not offset more than a portion of adverse movements.

Credit and investment risk. A substantial majority of trade receivables carry no collateral, bank support or credit insurance, and a significant portion is concentrated in cellular carriers and resellers. Vendor non-trade receivables are concentrated among a few vendors located primarily in Asia. The value and liquidity of cash, cash equivalents and marketable securities may fluctuate substantially.

Tax. Apple is taxed in the U.S. and numerous foreign jurisdictions including Ireland and Singapore, where a number of subsidiaries are organized. OECD proposals including global minimum tax standards continue to advance. Effective rates are affected by earnings mix, deferred tax valuation, new taxes and changes in law or interpretation, and Apple is regularly under examination by the IRS and other authorities.

Key personnel and culture. Much of future success depends on the CEO, executive team and other highly skilled employees, in a market where competition for talent is intense, especially in Silicon Valley.

New business strategies and acquisitions. Investments, commercial relationships and acquisitions can distract management, produce greater-than-expected liabilities, fail to earn an adequate return on capital, cause impairments and write-offs, or fail to obtain regulatory approval.

Management's discussion, fiscal 2025

From the FY2025 10-K, accession 0000320193-25-000079. Fiscal 2025 and 2024 each spanned 52 weeks.

Consolidated results. Total net sales of $416.2 billion, up 6% from $391.0 billion. Gross margin of $195.2 billion, or 46.9% of sales (46.2% in 2024). Operating income $133.1 billion. Net income $112.0 billion; diluted EPS $7.46 (vs. $6.08).

By segment (net sales, $ millions):

Americas grew on iPhone and Services, with an unfavorable currency impact. Europe grew on Services, iPhone and Mac. Greater China declined, on lower iPhone sales partly offset by Mac. Japan grew on iPhone, Services and iPad; Rest of Asia Pacific on iPhone, Services and Mac.

By category (net sales, $ millions):

iPhone grew on Pro models; Mac on laptops and desktops; iPad on Air, mini and base iPad offset by lower iPad Pro. Wearables, Home and Accessories declined on lower Accessories and Wearables. Services grew on advertising, the App Store and cloud services.

Gross margin. Products gross margin $112.9 billion at 36.8% (down from 37.2%); Services $82.3 billion at 75.4% (up from 73.9%). Products margin percentage fell on product mix and tariff costs, partly offset by other favorable costs. Services margin percentage rose on services mix, partly offset by higher costs. Apple states that in general it believes gross margins will remain subject to volatility and downward pressure.

Operating expenses. R&D $34.6 billion (+10%, 8% of sales) on headcount and infrastructure. SG&A $27.6 billion (+6%, 7% of sales) on headcount and variable selling expense. Total operating expenses $62.2 billion, 15% of sales.

Taxes. Provision $20.7 billion; effective rate 15.6% versus 24.1% in 2024. The decline came from a $10.7 billion year-over-year decrease in the provision related to the State Aid Decision plus changes in unrecognized tax benefits, partly offset by a valuation allowance change and a higher effective rate on foreign earnings.

Product announcements during fiscal 2025. Q1: MacBook Pro, Mac mini, iMac, iPad mini. Q2: iPhone 16e, iPad Air, iPad, MacBook Air, Mac Studio. Q3: iOS 26, macOS Tahoe 26, iPadOS 26, watchOS 26, visionOS 26, tvOS 26. Q4: iPhone 17, iPhone Air, iPhone 17 Pro and 17 Pro Max; Apple Watch Series 11, SE 3 and Ultra 3; AirPods Pro 3.

Liquidity at year-end 2025. Cash, cash equivalents and marketable securities of $132.4 billion. Fixed-rate notes with aggregate principal of $91.3 billion ($12.4 billion due within 12 months) plus $37.0 billion of future interest; $8.0 billion of commercial paper. Fixed lease obligations $16.8 billion ($2.6 billion within 12 months); manufacturing purchase obligations $56.2 billion ($55.4 billion within 12 months); other purchase obligations $14.8 billion ($7.0 billion within 12 months); deemed repatriation tax payable $8.8 billion (all within 12 months).

Capital return in fiscal 2025. Repurchased $89.3 billion of common stock and paid $15.4 billion in dividends and dividend equivalents. In May 2025 Apple announced a new $100 billion repurchase program and raised the quarterly dividend from $0.25 to $0.26.

Current quarter, fiscal 2026 third quarter (ended June 27, 2026)

From the Q3 FY2026 10-Q, accession 0000320193-26-000020, and the results release furnished on Form 8-K, accession 0000320193-26-000018.

Headline results. Total net sales $109.4 billion, up 16% year over year. Gross margin $54.8 billion, 50.1% of sales (46.5% a year ago). Operating income $35.7 billion. Net income $29.8 billion; diluted EPS $2.02, up 29%. Fiscal 2026 and 2025 each span 52 weeks.

Management disclosed in the results release that the 50.1% gross margin included a favorable impact of approximately 2 percentage points from tariff refunds, and that diluted EPS included a favorable impact of $0.11 from tariff refunds, so a meaningful part of the margin and EPS expansion is non-recurring. Apple described the quarter as its strongest June quarter ever, with June-quarter records for total revenue, EPS and operating cash flow, and an all-time high installed base of active devices across all major product categories and geographic segments.

Nine months. Net sales $364.4 billion (+16%), gross margin $178.8 billion (49.1%), net income $101.5 billion, diluted EPS $6.88.

By segment (net sales, $ millions):

The Greater China reversal is the standout: from a 4% decline in fiscal 2025 to +22% in the quarter and +30% for the nine months, driven by iPhone, with a favorable renminbi. Apple notes that in Greater China, iPhone represented a moderately higher proportion of segment net sales than in other segments. Europe and Rest of Asia Pacific benefited from currency strength; Japan grew despite an unfavorable yen.

By category (net sales, $ millions):

iPhone grew on Pro models; Mac on laptops. iPad declined in the quarter on lower iPad mini and iPad Air. Services grew on advertising and cloud services, note the change from fiscal 2025's driver list, which also cited the App Store.

Gross margin detail. Products gross margin $31.5 billion at 40.1% (34.5% a year ago); Services $23.2 billion at 75.6% (flat year over year). Products margin rose on product mix and tariff refunds, partly offset by higher costs including memory. For the nine months, Products margin was 39.9% versus 36.9%.

Operating expenses. R&D $11.7 billion, up 32% in the quarter and up 33% for the nine months to $34.0 billion, driven by higher infrastructure-related costs including investments in artificial intelligence and headcount. R&D moved to 11% of net sales in the quarter from 9% a year ago. SG&A $7.3 billion (+10%), attributed to no single significant factor. Total operating expenses $19.1 billion, +23%.

Taxes. Provision $6.5 billion; effective rate 17.9% versus 16.4% a year ago (nine months: 17.6% versus 15.4%). The increase was driven by a higher effective rate on foreign earnings; the nine-month comparison also reflects December 2024 Treasury foreign currency loss regulations and, in the prior year, currency revaluations related to the State Aid Decision.

Product and software announcements. During the third quarter of 2026 Apple announced iOS 27, macOS 27 Golden Gate, iPadOS 27, watchOS 27, visionOS 27 and tvOS 27, and introduced Siri AI.

Component costs and supply, management's own framing. Apple states it is experiencing a period of supply constraints and increasing costs for components driven by industry supply-demand imbalances in advanced semiconductors, storage (NAND) and memory (DRAM), and that it expects these trends to intensify, which may materially negatively impact revenue, costs, gross margin and results. Price increases and other mitigations may not work and may themselves reduce demand.

Tariff timeline. On January 14, 2026, initial results of the Commerce Department's Section 232 semiconductor investigation were published; the announcement did not impose any additional tariffs affecting Apple's products. On February 20, 2026, the U.S. Supreme Court struck down certain tariffs previously imposed under the International Emergency Economic Powers Act of 1977. Apple has applied for refunds of tariffs paid through U.S. Customs and Border Protection processes and recognizes refunds received as a reduction of products cost of sales. Apple notes the recent imposition of tariffs under Section 301 of the Trade Act of 1974 and that further measures, additional Section 232 action, sector-based tariffs, or further Section 301 action, remain possible.

Balance sheet and cash flow. Cash, cash equivalents and marketable securities of $146.5 billion at June 27, 2026, up from $132.4 billion at fiscal year-end 2025. Total assets $383.3 billion; total shareholders' equity $107.5 billion, up from $73.7 billion, as retained earnings turned positive at $11.3 billion from an accumulated deficit of $(14.3) billion.

Several working-capital and asset lines moved sharply, and read as a deliberate response to the component squeeze:

• Inventories nearly doubled to $11.1 billion from $5.7 billion. The entire increase is components: $7.6 billion versus $2.1 billion; finished goods actually fell slightly.
• Gross intangible assets rose to $38.2 billion from $25.0 billion; net intangibles (current plus non-current) $25.4 billion versus $13.3 billion.
• Other purchase obligations doubled to $29.3 billion from $14.8 billion at year-end ($9.2 billion payable within 12 months), covering supplier arrangements, licensed IP and content, distribution rights, and capital assets for product manufacturing. Manufacturing purchase obligations rose modestly to $57.0 billion.
• Meanwhile cash capital expenditure fell: payments for property, plant and equipment of $6.8 billion for the nine months versus $9.5 billion a year earlier.

Cash generated by operating activities was $117.0 billion for the nine months, versus $81.8 billion a year earlier. Cash paid for income taxes was $26.6 billion versus $37.3 billion. Deferred revenue totaled $14.9 billion, of which 64% is expected to be realized within a year.

Debt. Term debt carrying amount $82.3 billion (fair value $71.2 billion), down from $90.7 billion at year-end after $8.1 billion of repayments. Commercial paper reduced to $2.0 billion from $8.0 billion. Apple paid off the remaining $8.8 billion deemed repatriation tax balance from the 2017 Tax Cuts and Jobs Act during the nine months.

Capital return. Quarterly dividend of $0.27 per share (raised from $0.26). In the quarter Apple repurchased $25.8 billion of stock and paid $4.0 billion in dividends and dividend equivalents; for the nine months it repurchased 215 million shares for $61.8 billion. On April 30, 2026 Apple announced an additional $100 billion repurchase program; $38.0 billion remained under the May 2025 program at quarter-end, for $138.0 billion of remaining authorization. In May 2026 Apple entered into new accelerated share repurchase agreements with up-front payments totaling $10.0 billion; the final share count and average price are determined by volume-weighted average price over purchase periods ending in the fourth quarter of fiscal 2026. Shares outstanding fell to 14.61 billion from 14.77 billion at year-end.

Other. Customer concentration increased: one customer represented 18% of total trade receivables at June 27, 2026 versus 12% at year-end, while cellular carriers fell to 27% from 34%. Two vendors accounted for 47% and 22% of vendor non-trade receivables. Unrecognized compensation cost on outstanding RSUs was $26.7 billion over a weighted-average 2.7 years. Apple reported no material changes to critical accounting estimates or to market risk, and concluded disclosure controls were effective with no material changes to internal control over financial reporting during the quarter.

Apple settled certain other legal matters during the third quarter of 2026 that were not individually or in the aggregate material. Management stated there was not at least a reasonable possibility of a material loss, or a material loss greater than a recorded accrual, on asserted legal and other claims.

Apple does not publish revenue or earnings guidance in its filings, and none appears in the Q3 FY2026 report or results release.

Subsequent events

Neither the FY2025 10-K nor the Q3 FY2026 10-Q contains a subsequent-events note, and no acquisition, divestiture, financing or litigation settlement is disclosed as occurring after the June 27, 2026 quarter end. The material post-period-end items disclosed elsewhere in Apple's filings are:

• Chief executive transition, effective September 1, 2026. Per the Form 8-K filed April 20, 2026 (accession 0001140361-26-015711): on April 20, 2026 Apple announced that Tim Cook will transition from Chief Executive Officer to Executive Chair of the Board, effective September 1, 2026. On April 17, 2026 the Board appointed John Ternus, Senior Vice President of Hardware Engineering, as Chief Executive Officer and a director, effective the same date. Ternus, 50, joined Apple in 2001 and has held his current role since 2021; prior roles include Vice President, Hardware Engineering. Art Levinson, current Chair of the Board, becomes Lead Independent Director on the transition date. Apple stated it intends to file an amendment containing the compensation information called for by Item 5.02(c)(3). This takes effect after the close of the June 2026 quarter and before the close of fiscal 2026.
• Dividend declared after quarter end. With the July 30, 2026 results release (Form 8-K, accession 0000320193-26-000018), the Board declared a cash dividend of $0.27 per share, payable August 13, 2026 to shareholders of record as of August 10, 2026.
• May 2026 accelerated share repurchase agreements settle in the fourth quarter of fiscal 2026. The $10.0 billion of up-front payments were made in the third quarter, but the number of shares ultimately delivered, and therefore the average repurchase price, is determined by purchase periods ending in Q4 FY2026.
• Supreme Court review of the Epic Games contempt standard is pending. Certiorari was granted June 30, 2026, days before quarter end; Apple is seeking a stay of the California District Court proceedings, and the outcome will be resolved after the reporting period.

Earlier management changes already in effect: Jennifer Newstead became general counsel on March 1, 2026, succeeding Kate Adams, who oversees government affairs until her retirement in late 2026 (Form 8-K filed December 5, 2025, accession 0001140361-25-044561); and Ben Borders became Principal Accounting Officer effective January 1, 2026, succeeding Chris Kondo (Form 8-K filed January 2, 2026, accession 0001140361-26-000199). Kevan Parekh signed the Q3 FY2026 report as Senior Vice President, Chief Financial Officer.

Filings that contain financial statements

Each of the following 8-K filings furnishes an Exhibit 99.1 earnings press release containing Apple's condensed consolidated statements of operations, condensed consolidated balance sheets, and condensed consolidated statements of cash flows for the periods indicated. These are the primary source filings for interim (quarterly) financial statements between 10-K/10-Q filings.

• Accession 0000320193-25-000007, filed 2025-01-30, fiscal Q1 2025, quarter ended December 28, 2024
• Accession 0000320193-25-000055, filed 2025-05-01, fiscal Q2 2025, quarter ended March 29, 2025
• Accession 0000320193-25-000071, filed 2025-07-31, fiscal Q3 2025, quarter ended June 28, 2025
• Accession 0000320193-25-000077, filed 2025-10-30, fiscal Q4 2025 and full fiscal year 2025, quarter/year ended September 27, 2025
• Accession 0000320193-26-000005, filed 2026-01-29, fiscal Q1 2026, quarter ended December 27, 2025
• Accession 0000320193-26-000011, filed 2026-04-30, fiscal Q2 2026, quarter ended March 28, 2026
• Accession 0000320193-26-000018, filed 2026-07-30, fiscal Q3 2026, quarter ended June 27, 2026

Earnings and results

Q3 FY2026 (quarter ended June 27, 2026), Revenue of $109.4 billion, up 16% year over year, with double-digit growth across iPhone, Mac and Services and in every geographic segment. Company gross margin was 50.1%, including an approximately 2-percentage-point favorable impact from tariff refunds. Diluted EPS was $2.02, up 29% year over year, which included a $0.11 favorable impact from tariff refunds. The board declared a cash dividend of $0.27 per share, payable August 13, 2026. (Accession 0000320193-26-000018, filed 2026-07-30.)

Q2 FY2026 (quarter ended March 28, 2026), Revenue of $111.2 billion, up 17% year over year, Apple's best March quarter ever, with double-digit growth across every geographic segment; iPhone set a March-quarter revenue record and Services reached a new all-time high. Diluted EPS was $2.01, up 22% year over year. Operating cash flow exceeded $28 billion, a March-quarter record. The board declared a cash dividend of $0.27 per share, a 4% increase from the prior $0.26 rate, payable May 14, 2026. (Accession 0000320193-26-000011, filed 2026-04-30.)

Q1 FY2026 (quarter ended December 27, 2025), Revenue of $143.8 billion, up 16% year over year and above expectations, a company record; iPhone had its best-ever quarter with all-time records in every geographic segment, and Services revenue reached an all-time high, up 14% year over year. The installed base of active devices surpassed 2.5 billion. Diluted EPS was $2.84, up 19% year over year, a new all-time EPS record. Operating cash flow was nearly $54 billion. The board declared a cash dividend of $0.26 per share, payable February 12, 2026. (Accession 0000320193-26-000005, filed 2026-01-29.)

Q4 FY2025 / full fiscal year 2025 (quarter/year ended September 27, 2025), Quarterly revenue of $102.5 billion, up 8% year over year, a September-quarter record including a September-quarter record for iPhone and an all-time revenue record for Services. Diluted EPS was $1.85, up 13% year over year on an adjusted basis (the year-ago quarter, fiscal Q4 2024, included a one-time $10.2 billion net income tax charge tied to the reversal of the European General Court's State Aid decision, which is excluded from the adjusted comparison). Full fiscal year 2025 revenue reached a record $416 billion with double-digit EPS growth. The board declared a cash dividend of $0.26 per share, payable November 13, 2025. (Accession 0000320193-25-000077, filed 2025-10-30.)

Q3 FY2025 (quarter ended June 28, 2025), Revenue of $94.0 billion, up 10% year over year, a June-quarter record with double-digit growth in iPhone, Mac and Services and growth in every geographic segment. Diluted EPS was $1.57, up 12% year over year. The board declared a cash dividend of $0.26 per share, payable August 14, 2025. (Accession 0000320193-25-000071, filed 2025-07-31.)

Q2 FY2025 (quarter ended March 29, 2025), Revenue of $95.4 billion, up 5% year over year, including double-digit growth in Services. Diluted EPS was $1.65, up 8% year over year. Operating cash flow was $24 billion, and the company returned $29 billion to shareholders during the quarter. The board declared a cash dividend of $0.26 per share, a 4% increase from the prior $0.25 rate, payable May 15, 2025. (Accession 0000320193-25-000055, filed 2025-05-01.)

Q1 FY2025 (quarter ended December 28, 2024), Revenue of $124.3 billion, up 4% year over year, described by the company as its best quarter ever. Diluted EPS was $2.40, up 10% year over year. The company returned over $30 billion to shareholders during the quarter. The board declared a cash dividend of $0.25 per share, payable February 13, 2025. (Accession 0000320193-25-000007, filed 2025-01-30.)

Leadership transitions

CEO succession, Tim Cook to Executive Chair; John Ternus to become CEO. On April 20, 2026, Apple announced that Tim Cook will transition from Chief Executive Officer to Executive Chair of the Board of Directors, effective September 1, 2026. On April 17, 2026, the Board appointed John Ternus, Apple's Senior Vice President of Hardware Engineering, as Chief Executive Officer and a member of the Board, also effective September 1, 2026. Art Levinson, the Board's current Chair, will become Lead Independent Director on the same date. (Accession 0001140361-26-015711, filed 2026-04-20.)

Chief Operating Officer succession. On July 8, 2025, Apple announced that Jeff Williams would transition out of the Chief Operating Officer role later that month, to be succeeded by Sabih Khan, then Apple's Senior Vice President of Operations, as part of a long-planned succession; Mr. Williams continued reporting to CEO Tim Cook overseeing design, Apple Watch and Health initiatives before his planned retirement later in 2025 (accession 0001140361-25-025275, filed 2025-07-09). The Board formally appointed Mr. Khan as Chief Operating Officer effective July 25, 2025 (accession 0001140361-25-027340, filed 2025-07-25).

General Counsel succession. On December 4, 2025, Apple announced that Jennifer Newstead will become General Counsel on March 1, 2026, succeeding Katherine (Kate) Adams, who has served as General Counsel since 2017. Ms. Newstead joined Apple as Senior Vice President in January 2026, reporting to CEO Tim Cook. Ms. Adams is remaining at Apple to lead its government affairs organization until her retirement later in 2026. (Accession 0001140361-25-044561, filed 2025-12-05.)

Principal Accounting Officer succession. Effective January 1, 2026, Apple's Board appointed Ben Borders as Principal Accounting Officer, succeeding Chris Kondo. Mr. Borders joined Apple in November 2010 and previously served as Director of Technical Accounting. (Accession 0001140361-26-000199, filed 2026-01-02.)

Capital markets activity

Senior notes offering. On May 12, 2025, Apple completed the issuance and sale of $4.5 billion aggregate principal amount of senior unsecured notes in four tranches: $1.5 billion of 4.000% Notes due 2028, $1.0 billion of 4.200% Notes due 2030, $1.0 billion of 4.500% Notes due 2032, and $1.0 billion of 4.750% Notes due 2035. The notes were issued under Apple's existing shelf registration statement, with interest payable semi-annually each May 12 and November 12. (Accession 0001140361-25-018400, filed 2025-05-12.)

Governance

Apple held its Annual Meeting of Shareholders on February 25, 2025 and again on February 24, 2026. At both meetings, shareholders re-elected the full slate of director nominees, ratified Ernst & Young LLP as independent registered public accounting firm, and approved an advisory (non-binding) resolution on executive compensation; a shareholder proposal on AI data acquisition and usage practices was not approved at the 2025 meeting. (Accessions 0001140361-25-005876, filed 2025-02-25, and 0001140361-26-006577, filed 2026-02-24.) The February 2026 meeting's filing also furnished an amended and restated Non-Employee Director Stock Plan and a related award agreement, adopted by the Board on November 4, 2025 and effective February 24, 2026, routine equity-plan documentation with no financial impact disclosed.

About this file

AAPL annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Source statement. Consolidated Statements of Operations, Balance Sheets and Statements of Cash Flows in the FY2025 Form 10-K
• Balance sheet: coverage note, FY2023. The FY2025 Form 10-K presents balance sheets only as of September 27, 2025 and September 28, 2024. The two fiscal 2023 figures shown here are the ending balances carried in that same filing's Consolidated Statements of Cash Flows and Consolidated Statements of Shareholders' Equity; no other fiscal 2023 balance sheet lines are presented in the filing.
• Notes, FY2023. Fiscal 2023 spanned 53 weeks; fiscal 2024, 2025 and 2026 each span 52 weeks.

AAPL quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Source statement, Q3 FY2026. Condensed Consolidated Statements of Operations, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Shareholders' Equity and the accompanying notes in the Q3 FY2026 Form 10-Q
• Source statement, Q2 FY2026. Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets in the Q2 FY2026 Form 10-Q
• Source statement, Q1 FY2026. Condensed Consolidated Statements of Operations, Balance Sheets and Statements of Cash Flows in Exhibit 99.1 to the first-quarter fiscal 2026 results Form 8-K. These are press-release figures, not figures taken from a Form 10-Q.
• Source statement, Q3 FY2025 (prior-year comparative). Prior-year comparative column of the Condensed Consolidated Statements of Operations and accompanying notes in the Q3 FY2026 Form 10-Q
• Source statement, Q2 FY2025 (prior-year comparative). Prior-year comparative column of the Condensed Consolidated Statements of Operations in the Q2 FY2026 Form 10-Q
• Source statement, Q1 FY2025 (prior-year comparative). Prior-year comparative column of Exhibit 99.1 to the first-quarter fiscal 2026 results Form 8-K (press-release figures).
• Cash flow three month derived: basis, Q3 FY2026. The Q3 FY2026 Form 10-Q presents cash flows only for the nine months ended June 27, 2026. These three-month amounts are the nine-month figures less the six months ended March 28, 2026 reported in the Q2 FY2026 Form 10-Q (accession 0000320193-26-000013).
• Cash flow three month derived: basis, Q2 FY2026. The Q2 FY2026 Form 10-Q presents cash flows only for the six months ended March 28, 2026. These three-month amounts are the six-month figures less the three months ended December 27, 2025 reported in the first-quarter results release (accession 0000320193-26-000005).

AAPL year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Source statement, First nine months of fiscal 2026. Nine-month columns of the Condensed Consolidated Statements of Operations, Statements of Cash Flows, Statements of Shareholders' Equity and accompanying notes in the Q3 FY2026 Form 10-Q
• Source statement, First nine months of fiscal 2025. Prior-year nine-month comparative columns in the Q3 FY2026 Form 10-Q
• Share repurchase activity: basis, First nine months of fiscal 2026. Note 7 of the Q3 FY2026 Form 10-Q states 215 million shares were repurchased for $61.8 billion during the nine months ended June 27, 2026.

AAPL trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Basis. Fiscal 2025 full-year figures from the FY2025 Form 10-K (accession 0000320193-25-000079), plus the nine months ended June 27, 2026, less the nine months ended June 28, 2025, both from the Q3 FY2026 Form 10-Q (accession 0000320193-26-000020). Apple does not publish a trailing-twelve-month statement; these are roll-ups of reported period figures.
• Per share: basis. Per-share amounts are roll-ups of the reported per-share figures for each component period, not amounts Apple reported. Each component is computed on its own weighted-average share count, so the sum is an approximation.

Adjustments

Sources

Notes

• All dollar figures in this file are stated in actual dollars. The underlying statements are presented in millions and share counts in thousands, so each figure was scaled up accordingly; the exact scaling note read for every statement used is recorded in units_notes_seen.
• Annual coverage reflects exactly what the FY2025 10-K (accession 0000320193-25-000079) presents on its face: three years of income statement and cash flow (fiscal 2025, 2024 and 2023) and two years of balance sheet (September 27, 2025 and September 28, 2024). No fiscal 2023 balance sheet is presented in that filing, so only the two fiscal 2023 ending balances that appear elsewhere in it -- total shareholders' equity from the statement of shareholders' equity and the cash ending balance from the statement of cash flows -- are carried here.
• The third quarter of fiscal 2026 (the thirteen weeks ended June 27, 2026) and its prior-year comparative come directly from the Q3 FY2026 Form 10-Q (accession 0000320193-26-000020), filed July 31, 2026. Apple also released these results in a July 30, 2026 press release, but every figure here is taken from the Form 10-Q rather than the release.
• No figures previously reported for fiscal 2025, 2024 or 2023, or for the first or second quarter of fiscal 2026, were restated by the Q3 FY2026 Form 10-Q. The nine-month fiscal 2026 columns tie exactly to the sum of the three quarters already on record: net sales of $143,756 million, $111,184 million and $109,417 million total the $364,357 million reported for the nine months, and net income of $42,097 million, $29,578 million and $29,789 million totals the $101,464 million reported. The same check holds for fiscal 2025's first nine months.
• First-quarter fiscal 2026 figures come from Exhibit 99.1 to the January 29, 2026 results Form 8-K (accession 0000320193-26-000005), which is a press release rather than a Form 10-Q. Those statements are labeled unaudited and condensed. They tie exactly to the first-quarter column implied by the Q2 FY2026 Form 10-Q and, together with the second and third quarters, to the nine-month column of the Q3 FY2026 Form 10-Q.
• Neither the Q2 nor the Q3 FY2026 Form 10-Q presents a standalone three-month cash flow statement; both report cash flows only on a cumulative year-to-date basis. The three-month cash flow amounts shown for the third quarter of fiscal 2026 are the nine-month figures less the six-month figures, and are labeled as derived. That method was checked against two directly disclosed amounts: it produces third-quarter share-based compensation expense of $3,401 million, exactly the amount the filing's share-based compensation note reports for the three months ended June 27, 2026, and dividends and dividend equivalents paid of $4,035 million, matching the approximately $4.0 billion the filing's liquidity discussion cites for the quarter.
• Beginning with the Q2 FY2026 Form 10-Q, Apple presents 'Intangible assets, net' as a separate balance sheet caption. The Q3 FY2026 Form 10-Q restates the September 27, 2025 comparative column the same way, splitting $11,093 million of non-current intangible assets out of what the FY2025 10-K had shown as a single 'Other non-current assets' balance of $83,727 million and leaving $72,634 million in that caption. The two add back to the original $83,727 million, so this is a presentation reclassification rather than a change in amounts, and every other line of the September 27, 2025 column is unchanged from the 10-K. The fiscal 2025 annual balance sheet here is reported as the 10-K originally presented it; the quarterly balance sheets are reported on each filing's own presentation.
• Intangible assets have grown sharply through fiscal 2026: gross intangible assets rose from $24,950 million at September 27, 2025 to $38,220 million at June 27, 2026, and total intangible assets net of amortization rose from $13,301 million to $25,417 million, of which $20,342 million is classified as non-current and $5,075 million as current. Research and development expense rose 32% year over year in the third quarter and 33% over the first nine months, which the filing attributes primarily to higher infrastructure-related costs, including investments in artificial intelligence, and headcount-related expenses.
• Total debt is not a caption Apple presents, so it is computed here from the balance sheet as commercial paper plus current and non-current term debt. On that basis it fell from $106,629 million at September 28, 2024 to $98,657 million at September 27, 2025 and to $84,344 million at June 27, 2026. Separately, the debt note states the aggregate carrying amount of outstanding fixed-rate notes was $82.3 billion at June 27, 2026 and $90.7 billion at September 27, 2025, consistent with the sum of the current and non-current term debt lines.
• Cash flow statement dividend and buyback amounts differ slightly from the amounts shown in the statement of shareholders' equity because the cash flow statement reflects cash actually paid or settled in the period while the equity statement reflects amounts declared or shares repurchased in the period. For the third quarter of fiscal 2026 the derived cash-settlement buyback figure is $25,105 million, the statement of shareholders' equity shows $25,949 million of common stock repurchased, and the filing's liquidity discussion cites approximately $25.8 billion repurchased. Both bases are reported here where available.
• Inventories more than doubled over the first nine months of fiscal 2026, from $5,718 million at September 27, 2025 to $11,092 million at June 27, 2026, driven almost entirely by components, which rose from $2,124 million to $7,645 million. The filing discloses that Apple is experiencing a period of supply constraints and rising component costs, particularly for advanced semiconductors, NAND storage and DRAM memory, and expects those trends to intensify.
• Products gross margin percentage rose from 34.5% in the third quarter of fiscal 2025 to 40.1% in the third quarter of fiscal 2026. The filing attributes the increase primarily to a different mix of products and to tariff refunds, partially offset by higher costs including memory. The tariff refunds follow a February 20, 2026 U.S. Supreme Court ruling striking down certain tariffs, for which Apple applied for refunds and recognized amounts received as a reduction of products cost of sales.
• Fiscal 2023 spanned 53 weeks while fiscal 2024, 2025 and 2026 span 52 weeks each, which slightly flatters fiscal 2023 in any year-over-year comparison against fiscal 2024.
• Every figure in this file was read from the face of the filings named in the sources block. The SEC's XBRL company facts were used only as an independent cross-check and agreed with the filings on revenue, net income, operating cash flow, capital expenditure, depreciation and amortization, share-based compensation, dividends paid, repurchases of common stock and the cover-page share count for each period tested; no figure had to be overridden.
• Apple's segment tables charge research and development and general and administrative expense to a Corporate column rather than to a geographic segment, so segment operating income sums to consolidated operating income only after the large negative Corporate figure is included.
• The trailing-twelve-month view is not something Apple publishes. It is built here as fiscal 2025 plus the first nine months of fiscal 2026 less the first nine months of fiscal 2025, using only figures reported in the two filings named.

Uncertainties

• The three-month cash flow amounts for the second and third quarters of fiscal 2026 are derived by subtraction rather than reported, because neither the Q2 nor the Q3 FY2026 Form 10-Q presents a standalone three-month cash flow statement. Each derivation is arithmetically exact against the filed cumulative statements, but Apple never published standalone second- or third-quarter cash flow statements.
• The derived third-quarter fiscal 2026 buyback of $25,105 million is on a cash-settlement basis and so differs from the $25,949 million of common stock repurchased shown in the statement of shareholders' equity and the approximately $25.8 billion cited in the filing's liquidity discussion. The nine-month figures show the same kind of spread: $62,094 million of cash paid, $62,242 million charged to equity, and $61.8 billion for 215 million shares stated in the shareholders' equity note.
• First-quarter fiscal 2026 figures are press-release figures from Exhibit 99.1 to the January 29, 2026 Form 8-K, not figures from a Form 10-Q. The corresponding Form 10-Q was filed but is not among the filings used here; the press release figures reconcile exactly to the six-month column of the Q2 FY2026 Form 10-Q and to the nine-month column of the Q3 FY2026 Form 10-Q.
• No fiscal 2023 balance sheet is presented in the FY2025 10-K, so fiscal 2023 total assets, total liabilities, debt, receivables, inventories and every other balance sheet line are unavailable and are omitted rather than estimated. The fiscal 2023 cash figure shown is the 'cash, cash equivalents, and restricted cash and cash equivalents' ending balance from the statement of cash flows, which is a slightly broader measure than the balance sheet's cash and cash equivalents line.
• The trailing-twelve-month diluted earnings per share of $8.72 and basic earnings per share of $8.76 are roll-ups of reported per-share amounts, not figures Apple reported. Per-share amounts are computed on each period's own weighted-average share count, so adding and subtracting them yields an approximation; the same caveat applies to the trailing-twelve-month dividends declared per share of $1.05.
• Q3 FY2025, Q2 FY2025 and Q1 FY2025 are shown as prior-year comparative columns only. No balance sheet as of June 28, 2025, March 29, 2025 or December 28, 2024 appears in the filings used here, so no quarterly balance sheet is reported for those periods, and no standalone three-month cash flow statement is available for the third quarter of fiscal 2025.
• The fiscal 2026 third-quarter and nine-month effective tax rates of 17.9% and 17.6% are the rates Apple states in the filing. The filing notes they are higher than the prior-year periods primarily because of a higher effective tax rate on foreign earnings, and that the prior-year nine-month rate was depressed by foreign currency revaluations related to the European Commission State Aid Decision, so year-over-year tax comparisons for fiscal 2026 are not on a like-for-like basis.

Company details

Fiscal period