Apple Inc. (AAPL) Narrative
Sources: Annual Report on Form 10-K for the fiscal year ended September 27, 2025 (accession 0000320193-25-000079) and Quarterly Report on Form 10-Q for the fiscal quarter ended March 28, 2026 (accession 0000320193-26-000013). Post-period corporate items also from the Current Report on Form 8-K dated April 20, 2026 (accession 0001140361-26-015711).
Apple's fiscal year is the 52- or 53-week period ending the last Saturday of September. Fiscal 2026 and 2025 each span 52 weeks. "Second quarter of 2026" means the three months ended March 28, 2026.
Business
From the FY2025 10-K, accession 0000320193-25-000079.
Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells related services. The economic model is vertical integration: Apple designs nearly the entire solution, hardware, operating system, applications and services, and monetizes the installed base twice, first on device sale and then on recurring services attached to that device.
Product lines.
- iPhone, smartphones on iOS. Line includes iPhone 17 Pro, iPhone Air, iPhone 17, iPhone 16 and iPhone 16e.
- Mac, personal computers on macOS: MacBook Air, MacBook Pro laptops; iMac, Mac mini, Mac Studio, Mac Pro desktops.
- iPad, tablets on iPadOS: iPad Pro, iPad Air, iPad, iPad mini.
- Wearables, Home and Accessories, Apple Watch Series 11, Apple Watch SE 3 and Apple Watch Ultra 3 on watchOS; AirPods, AirPods Pro, AirPods Max and Beats headphones; Apple Vision Pro spatial computer on visionOS; Apple TV 4K on tvOS; HomePod and HomePod mini; Apple-branded and third-party accessories.
Services is reported as one revenue line but is a bundle of distinct businesses: advertising (third-party licensing arrangements plus Apple's own ad platforms), AppleCare (fee-based service, support and accidental-damage/theft coverage), cloud services, digital content (the App Store plus subscription services Apple Arcade, Apple Fitness+, Apple Music, Apple News+ and Apple TV), and payment services (Apple Card, a co-branded credit card, and Apple Pay). Services net sales also include amortization of the deferred value of services bundled into product sale prices.
Segments are geographic, not product: Americas (North and South America), Europe (European countries plus India, the Middle East and Africa), Greater China (China mainland, Hong Kong, Taiwan), Japan, and Rest of Asia Pacific (Australia, New Zealand and other Asian countries). All segments sell substantially the same products and services; they are managed separately to match local customers, distribution partners and market dynamics. In the segment tables, cost of sales and selling and marketing are allocated to segments while R&D and general and administrative sit in Corporate, so segment "operating income" is a gross-margin-less-selling-costs figure, not a fully loaded one.
Distribution. Direct channels (retail and online stores, direct sales force) were 40% of fiscal 2025 net sales; indirect channels (cellular carriers, resellers) were 60%. Customers span consumer, small and mid-sized business, education, enterprise and government.
Supply chain. A significant majority of manufacturing is performed by outsourcing partners located primarily in China mainland, India, Japan, South Korea, Taiwan and Vietnam, with additional sourcing from partners and facilities in the U.S. Substantially all hardware final assembly sits with those partners. Certain components come from single or limited sources, and new products often use custom components available from only one supplier.
Competition. Markets are described as highly competitive, characterized by aggressive price competition, downward gross-margin pressure, short product life cycles and rapid technological change. Apple states it holds a minority market share in the global smartphone, personal computer, tablet and wearables markets. Many competitors compete primarily on price and low cost structures and by imitating Apple's products.
People. Approximately 166,000 full-time equivalent employees as of September 27, 2025. Headquarters in Cupertino, California.
Seasonality. Net sales are historically highest in the first fiscal quarter (holiday demand). Product launch timing also moves net sales through indirect channels as those channels fill with new inventory and older-product channel inventory drains ahead of a launch.
Risk factors
Condensed from the FY2025 10-K, accession 0000320193-25-000079, with the material updates disclosed in the 10-Q for the quarter ended March 28, 2026, accession 0000320193-26-000013.
Component supply and cost, the newly elevated risk. In the March 2026 quarter Apple disclosed that it "is experiencing a period of supply constraints and increasing costs for components" driven by industry supply-demand imbalances for advanced semiconductors, storage (NAND) and memory (DRAM), and that it expects these trends to intensify. Apple states that these trends, together with actions it may take in response, may materially adversely affect demand for its products and negatively impact revenue, costs, gross margin, results of operations and financial condition. The gross-margin risk factor was rewritten to lead with "industry-wide supply constraints and increasing costs for components." This is the single most consequential change to Apple's risk disclosure this period.
Tariffs and trade restriction. A significant majority of manufacturing sits outside the U.S. Beginning in the second quarter of fiscal 2025, new U.S. tariffs were announced on imports including from China, India, Japan, South Korea, Taiwan, Vietnam and the EU, with reciprocal and retaliatory measures from other countries. Restrictive measures can raise costs, limit availability of products, components, rare earths and raw materials, force supplier and business-relationship changes, and require price increases. Such measures can be announced with little or no advance notice. Global supply chains are highly concentrated and an escalation of geopolitical tension could cause significant disruption.
Single-product concentration. Apple states directly that it "generates a significant portion of its 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 50% of fiscal 2025 net sales and 51% of second-quarter 2026 net sales.
Single- and limited-source components. Custom components from one source; initial capacity constraints on new technologies until supplier yields mature; supply agreements that may not be renewable on similar terms; supplier failure or consolidation. Vendor non-trade receivables are concentrated among a few vendors located primarily in Asia, and Apple also carries prepayments under long-term supply agreements, both unsecured credit exposures.
Regulatory reshaping of the App Store economics. Two live threads:
- United States (Epic Games). The California District Court's 2021 injunction barred Apple from prohibiting developers from steering users to outside purchase mechanisms. On April 30, 2025 the court found Apple in violation and issued a further injunction barring any commission or fee on purchases consumers make outside an app. On December 11, 2025 the Ninth Circuit upheld the 2025 injunction in part and modified it, allowing Apple to require parity in size, form and placement between its in-app purchase and any external links, and holding that Apple can charge a commission on link-out purchases, remanding to the district court to amend accordingly. Apple warns that if it is ultimately unsuccessful in defending its commission structure, or if similar restrictions are imposed or expanded in other jurisdictions and the commission is narrowed or eliminated, results could be materially adversely affected.
- European Union (Digital Markets Act). On April 23, 2025 the European Commission fined Apple €500 million under the Article 5(4) investigation and issued a cease-and-desist order requiring removal of anti-steering restrictions; Apple has appealed. The Commission also issued preliminary findings in the Article 6(4) investigation into Apple's contractual requirements for third-party developers and app marketplaces; an adverse final determination can carry fines up to 10% of annual worldwide net sales, with further fines for violating a cease-and-desist order.
Google search licensing. Apple earns revenue from licensing arrangements with Google and others to offer search services on Apple platforms. Google was found to have violated U.S. antitrust laws on August 5, 2024; the D.C. District Court ordered remedies on September 2, 2025, and both the DOJ and Google appealed. 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 would materially adversely affect Apple's ability to earn revenue from those arrangements. This is a high-margin, third-party-dependent revenue stream inside Services.
DOJ antitrust suit. On March 21, 2024 the DOJ and a number of state and district attorneys general filed a civil antitrust suit in the District of New Jersey alleging monopolization or attempted monopolization in "performance smartphones" and "smartphones." The DOJ seeks equitable relief. Parallel private civil litigation seeks monetary damages. Apple believes it has substantial defenses.
Artificial intelligence, a risk factor added this quarter. Apple newly discloses that AI technologies are increasingly integrated into its products, services and operations and present emerging legal, regulatory, ethical and operational risks, specifically naming: competition and strategy; recouping costs and returns on AI investments; product liability; IP infringement; data privacy; cybersecurity; sanctions and export controls; exposure of users to harmful or inaccurate content; bias and discrimination; and online safety and protection of minors. Separately, the cybersecurity risk factor was expanded to describe AI-enabled attacks, targeted phishing, automated vulnerability discovery and exploitation, deepfake content bypassing authentication, as intensifying risks, including systemic and infrastructure-level ones.
Product transitions and defects. Apple must continually introduce and transition products, manage production ramps, integrate third-party technology, and match manufacturing and purchase commitments to demand. New offerings may replace existing ones at lower revenue and lower margin. Design and manufacturing defects can trigger product liability claims, recalls, inventory and asset write-offs, and warranty and litigation expense; new technologies including AI features increase safety risk.
Inventory and commitment risk. Manufacturing purchase obligations cover forecasted component and manufacturing requirements typically for periods up to 150 days. Wrong forecasts produce excess or insufficient components, write-downs on inventory, supplier-held capital assets, inventory prepayments and other long-lived assets.
Third-party developer and content dependence. Hardware demand depends partly on third-party app availability; Apple's minority platform share can make developers prioritize Android, Windows and console platforms. Digital content licensing arrangements are often short-term with no guaranteed renewal, and some content providers compete with Apple.
Currency. Sales outside the U.S. are a majority of net sales. A strengthening dollar reduces the dollar value of foreign-currency sales and earnings and generally pushes Apple to raise international pricing, which can reduce demand; a strengthening of foreign currencies can raise the cost of components denominated in those currencies. Hedging may not offset more than a portion of adverse movement.
Data protection, privacy and online safety. An increasing number of federal, state and international laws govern collection, use, retention, protection and transfer of personal data, inconsistently across jurisdictions, China's data-processing and localization requirements are called out as potentially limiting Apple's ability to transfer data out of China. Health, biometric, financial and payment-card data carry additional requirements. New online-safety and mandatory age-verification laws require complex compliance measures and significant product modification.
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, mix shifts across differing statutory rates, deferred tax valuation changes and examinations by the IRS and other authorities can all raise the effective rate.
Other named risks. Macroeconomic sensitivity (consumer confidence, inflation, rates, credit); natural disaster, industrial accident and public health interruption at Apple's or its suppliers' concentrated facilities; IT system failure and network disruption; loss or unauthorized release of confidential information, with Apple noting it is at relatively greater risk of being targeted because of its profile; dependence on carriers and resellers whose financing and subsidy plans can be modified or discontinued at any time; key-personnel and talent competition, particularly in Silicon Valley; risks from new business strategies, commercial relationships and acquisitions; and stock price volatility, including that volatility may cause the average repurchase price in a period to exceed the stock's price at a given point.
Management's discussion and analysis, fiscal 2025
From the FY2025 10-K, accession 0000320193-25-000079. Fiscal year ended September 27, 2025.
Consolidated results.
| $M | FY2025 | FY2024 | Change |
|---|---|---|---|
| Products net sales | 307,003 | 294,866 | +4% |
| Services net sales | 109,158 | 96,169 | +14% |
| Total net sales | 416,161 | 391,035 | +6% |
| Gross margin | 195,201 | 180,683 | +8% |
| Research and development | 34,550 | 31,370 | +10% |
| Selling, general and administrative | 27,601 | 26,097 | +6% |
| Operating income | 133,050 | 123,216 | +8% |
| Provision for income taxes | 20,719 | 29,749 | (30)% |
| Net income | 112,010 | 93,736 | +20% |
| Diluted EPS | $7.46 | $6.08 | +23% |
Net sales by segment.
| $M | FY2025 | Change | FY2024 | Change | FY2023 |
|---|---|---|---|---|---|
| Americas | 178,353 | +7% | 167,045 | +3% | 162,560 |
| Europe | 111,032 | +10% | 101,328 | +7% | 94,294 |
| Greater China | 64,377 | (4)% | 66,952 | (8)% | 72,559 |
| Japan | 28,703 | +15% | 25,052 | +3% | 24,257 |
| Rest of Asia Pacific | 33,696 | +10% | 30,658 | +4% | 29,615 |
| Total | 416,161 | +6% | 391,035 | +2% | 383,285 |
Americas grew on iPhone and Services, with weak foreign currencies against the dollar an unfavorable year-over-year drag. Europe grew on Services, iPhone and Mac. Greater China declined for a second consecutive year, down 4% after down 8%, on lower iPhone net sales partly offset by higher Mac. Japan grew on iPhone, Services and iPad; Rest of Asia Pacific on iPhone, Services and Mac.
Net sales by category.
| $M | FY2025 | Change | FY2024 | Change | FY2023 |
|---|---|---|---|---|---|
| iPhone | 209,586 | +4% | 201,183 | , % | 200,583 |
| Mac | 33,708 | +12% | 29,984 | +2% | 29,357 |
| iPad | 28,023 | +5% | 26,694 | (6)% | 28,300 |
| Wearables, Home and Accessories | 35,686 | (4)% | 37,005 | (7)% | 39,845 |
| Services | 109,158 | +14% | 96,169 | +13% | 85,200 |
| Total | 416,161 | +6% | 391,035 | +2% | 383,285 |
iPhone rose on higher Pro-model net sales; Mac on laptops and desktops; iPad on iPad Air, iPad mini and iPad, offset by lower iPad Pro. Wearables, Home and Accessories declined for a third straight year on lower Accessories and Wearables. Services grew on advertising, the App Store and cloud services.
Gross margin.
| FY2025 | FY2024 | FY2023 | |
|---|---|---|---|
| Products gross margin ($M) | 112,887 | 109,633 | 108,803 |
| Services gross margin ($M) | 82,314 | 71,050 | 60,345 |
| Total gross margin ($M) | 195,201 | 180,683 | 169,148 |
| Products gross margin % | 36.8% | 37.2% | 36.5% |
| Services gross margin % | 75.4% | 73.9% | 70.8% |
| Total gross margin % | 46.9% | 46.2% | 44.1% |
Products gross margin dollars rose on favorable costs and product mix, partly offset by tariff costs; Products gross margin percentage fell on mix and tariff costs. Services gross margin rose on higher Services net sales and services mix, with percentage up on mix partly offset by higher costs. Management states its general expectation that gross margins "will be subject to volatility and downward pressure." The mix story is the important one: Services carries roughly double the margin rate of Products, so consolidated margin expansion in fiscal 2025 was driven mostly by Services growing 14% against Products growing 4%.
Operating expenses. R&D $34,550M (+10%, 8% of net sales) on headcount and infrastructure-related costs; SG&A $27,601M (+6%, 7% of net sales) on headcount and variable selling expenses. Total operating expenses $62,151M, 15% of net sales.
Taxes. The fiscal 2025 effective rate was below the 21% statutory federal rate on a lower effective rate on foreign earnings, unrecognized-tax-benefit changes, the U.S. federal R&D credit and share-based compensation benefits, offset by a valuation-allowance change and state taxes. The rate fell versus fiscal 2024 principally because of a $10.7 billion year-over-year decrease in the tax provision related to the European Commission State Aid Decision, the 2016 decision ordering Ireland to recover additional taxes from Apple for June 2003 through December 2014, the charge for which landed in fiscal 2024. Fiscal 2024 net income is therefore depressed by a one-time item, and the fiscal 2025 +20% net income growth overstates underlying earnings progress.
Liquidity and capital structure at September 27, 2025. Cash, cash equivalents and marketable securities of $132.4 billion. Cash generated by operating activities $111,482M (versus $118,254M in fiscal 2024); payments for property, plant and equipment $12,715M; cash used in financing activities $120,686M. Contractual obligations: fixed-rate notes of $91.3 billion aggregate principal ($12.4 billion due within 12 months) with $37.0 billion of future interest; $8.0 billion commercial paper; fixed lease payment obligations of $16.8 billion; manufacturing purchase obligations of $56.2 billion ($55.4 billion within 12 months); other purchase obligations of $14.8 billion; and a remaining $8.8 billion deemed repatriation tax payable under the 2017 Tax Cuts and Jobs Act, payable within 12 months.
Capital return. In May 2025 Apple announced a new share repurchase program of up to $100 billion and raised the quarterly dividend from $0.25 to $0.26 per share. During fiscal 2025 it repurchased $89.3 billion of common stock and paid $15.4 billion of dividends and dividend equivalents, a combined return roughly equal to 94% of operating cash flow.
Fiscal 2025 product announcements. 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 iPhone 17 Pro Max; Apple Watch Series 11, Apple Watch SE 3 and Apple Watch Ultra 3; AirPods Pro 3.
Critical accounting estimates are uncertain tax positions and legal and other contingencies.
Current quarter, fiscal Q2 2026
From the 10-Q for the quarter ended March 28, 2026, accession 0000320193-26-000013.
The quarter was an unusually strong one, led by iPhone and by Greater China.
| $M | Q2 FY26 | Q2 FY25 | Change | 6M FY26 | 6M FY25 | Change |
|---|---|---|---|---|---|---|
| Products net sales | 80,208 | 68,714 | +17% | 193,951 | 166,674 | +16% |
| Services net sales | 30,976 | 26,645 | +16% | 60,989 | 52,985 | +15% |
| Total net sales | 111,184 | 95,359 | +17% | 254,940 | 219,659 | +16% |
| Gross margin | 54,781 | 44,867 | +22% | 124,012 | 103,142 | +20% |
| Research and development | 11,419 | 8,550 | +34% | 22,306 | 16,818 | +33% |
| Selling, general and administrative | 7,477 | 6,728 | +11% | 14,969 | 13,903 | +8% |
| Operating income | 35,885 | 29,589 | +21% | 86,737 | 72,421 | +20% |
| Provision for income taxes | 6,255 | 4,530 | 15,160 | 10,784 | ||
| Net income | 29,578 | 24,780 | +19% | 71,675 | 61,110 | +17% |
| Diluted EPS | $2.01 | $1.65 | +22% | $4.85 | $4.05 | +20% |
Net sales by segment (quarter). Americas $45,093M (+12%); Europe $28,055M (+15%); Greater China $20,497M (+28%); Japan $8,401M (+15%); Rest of Asia Pacific $9,138M (+25%). Every segment grew, all on iPhone; Americas, Europe and Rest of Asia Pacific also on Services. Currency was a tailwind nearly everywhere, foreign currencies strengthened against the dollar in the Americas, Europe and Rest of Asia Pacific, and the renminbi strengthened, aiding Greater China. The yen was weak, an unfavorable drag on Japan for the six months. Greater China's +28% quarter and +33% six months reverse two consecutive years of decline.
Net sales by category (quarter). iPhone $56,994M (+22%) on Pro models; Mac $8,399M (+6%) on laptops (six-month Mac net sales were roughly flat, down 1%); iPad $6,914M (+8%) on iPad, offset by lower iPad mini; Wearables, Home and Accessories $7,901M (+5%) on Accessories and Wearables (six-month roughly flat); Services $30,976M (+16%) on advertising, the App Store and cloud services.
Margins expanded. Total gross margin percentage 49.3% versus 47.1%; Products 38.7% versus 35.9%; Services 76.7% versus 75.7%. Products margin improvement is attributed to product mix and strength in foreign currencies, partly offset by higher costs. Note the tension with the supply-cost disclosure below, the quarter's margin benefited from mix and currency, not from an easing cost environment.
R&D grew 34%, materially faster than revenue, $11,419M, 10% of net sales versus 9% a year ago, attributed to higher infrastructure-related costs and headcount-related expenses. SG&A grew 11% on headcount, variable selling expenses and professional services. Share-based compensation expense was $3,528M in the quarter and $7,122M for six months, with $28.8 billion of unrecognized cost remaining over a weighted-average 2.8 years.
Tax rate rose. Effective rate 17.5% for both the quarter and six months, versus 15.5% and 15.0% a year ago, principally on changes in unrecognized tax benefits; the six-month comparison also reflects December 2024 U.S. Treasury foreign-currency loss regulations and prior-year foreign currency revaluations tied to the State Aid Decision.
Supply constraints and component costs, management's flagged forward issue. Apple disclosed that it is experiencing supply constraints and increasing costs for components including advanced semiconductors, NAND storage and DRAM memory, and expects these trends to intensify, with potential material adverse effect on demand, revenue, costs and gross margin. This sits alongside evidence in the working capital accounts: inventories rose to $6,747M from $5,718M, and manufacturing purchase obligations fell to $44.6 billion from $56.2 billion at fiscal year-end while other purchase obligations rose to $30.4 billion from $14.8 billion, with unconditional purchase obligations with terms beyond one year more than doubling to $27,691M from $13,308M.
Tariffs, several developments. On January 14, 2026, initial results of the U.S. Department of Commerce 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, and Apple is applying for a refund of tariffs paid through U.S. Customs and Border Protection processes. Separately, tariffs have been imposed under Section 122 of the Trade Act of 1974, and further measures, additional Section 232 semiconductor actions, sector-based tariffs, or Section 301 actions, remain possible. The 10-Q adds language absent from the 10-K stating that tariffs applied to Apple's products or components "can have a material adverse impact" on business, results and financial condition, including on supply chain, availability of rare earths and other raw materials and components, pricing and gross margin.
Balance sheet at March 28, 2026. Cash and cash equivalents $45,572M plus current marketable securities $22,935M and non-current marketable securities $78,088M, roughly $146.6 billion of cash and securities, up from about $132.4 billion at fiscal year-end. Total assets $371,082M; total liabilities $264,591M; total shareholders' equity $106,491M, up from $73,733M, with retained earnings turning positive at $12,359M from an accumulated deficit of $(14,264)M.
Debt was reduced across the board: term debt carrying amount $82.7 billion versus $90.7 billion at fiscal year-end (fair value $70.8 billion on Level 2 inputs, well below carrying value), and commercial paper $2.0 billion versus $8.0 billion. Six-month repayments were $7,914M of term debt and $5,911M net of commercial paper, with no new issuance disclosed.
One balance-sheet movement stands out and is not explained in the filing: gross intangible assets rose to $37,767M from $24,950M in six months, with net intangibles at $25,797M versus $13,301M, while other non-current liabilities rose to $55,546M from $41,549M. There was no corresponding investing-activity outflow, payments for property, plant and equipment actually fell to $4,344M for six months from $6,011M a year ago, so the addition appears to have been non-cash. The 10-Q provides no narrative on the nature of the acquired intangibles.
Cash flow (six months). Cash generated by operating activities $82,627M versus $53,887M a year ago, a $28.7 billion improvement, substantially driven by working capital, including other current and non-current liabilities swinging to +$7,301M from $(15,579)M and other current and non-current assets consuming $(14,329)M versus $(4,371)M. Cash paid for income taxes fell to $20,397M from $31,683M. Investing used $11,054M against generating $12,709M a year ago, largely on higher purchases of marketable securities. Financing used $61,935M: $36,989M of share repurchases, $7,743M of dividends, $7,914M of term-debt repayment, $5,911M of net commercial-paper repayment.
Capital return. Apple repurchased 135 million shares for $36.0 billion in the first six months and $11.0 billion in the second quarter alone, and paid $3.8 billion of dividends and dividend equivalents in the quarter. Diluted shares outstanding fell to 14,725,873 thousand from 15,056,133 thousand a year ago, about a 2.2% reduction. Remaining availability under the May 2025 $100 billion program was $63.8 billion at March 28, 2026. During the six months Apple also paid the remaining $8.8 billion balance of the TCJA deemed repatriation tax payable, extinguishing that obligation.
Products announced during the quarter. iPad Air, iPhone 17e, MacBook Pro, MacBook Air, MacBook Neo and AirPods Max 2.
Legal developments in the quarter. The Ninth Circuit's December 11, 2025 order in the Epic Games matter upheld the 2025 injunction in part while modifying it to permit Apple to require parity in size, form and placement between in-app purchase and external purchase links, and holding that Apple can charge a commission on link-out purchases, remanding to the district court to amend the injunction accordingly. Apple settled certain other matters during the quarter that were not individually or in aggregate material. Management states 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.
Guidance. Apple does not provide forward revenue or earnings guidance in its periodic reports. The forward-looking content in this filing is limited to the supply-constraint and component-cost warning above, the standard statement that gross margins will be subject to volatility and downward pressure, and management's statement that existing cash, cash equivalents and marketable securities plus operating cash flow and continued access to debt markets will be sufficient to satisfy cash requirements and the capital return program over the next 12 months and beyond.
Subsequent events
Post-period developments disclosed in the 10-Q for the quarter ended March 28, 2026 (accession 0000320193-26-000013) and in the Current Report on Form 8-K dated April 20, 2026 (accession 0001140361-26-015711). The 10-Q contains no separate subsequent-events note; the items below are disclosed within its Management's Discussion and Analysis, the Part II Item 2 share-repurchase table footnote and the accompanying current report.
Chief Executive Officer succession. 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, Apple's Senior Vice President of Hardware Engineering, as Chief Executive Officer and a member of the Board, in each case effective September 1, 2026. Art Levinson, the current Chair of the Board, will become Lead Independent Director on that date. Mr. Ternus, 50, joined Apple in 2001 and has held his current role since 2021, previously serving as Vice President, Hardware Engineering. There are no family relationships or related-party transactions requiring disclosure. In connection with the appointment Apple and Mr. Ternus will enter into Apple's standard indemnification agreement for directors and executive officers; Apple stated it intends to file an amendment containing his compensation arrangements once determined. (Accession 0001140361-26-015711.)
New $100 billion share repurchase authorization. On April 30, 2026 Apple announced that the Board authorized an additional program to repurchase up to $100 billion of common stock. This is incremental to the May 2025 program, under which $63.8 billion of availability remained at March 28, 2026 (of that program's $100 billion, $36.2 billion had been utilized). Neither program obligates Apple to acquire a minimum number of shares.
Dividend increase. Also on April 30, 2026, the Board raised the quarterly cash dividend from $0.26 to $0.27 per share, beginning with the dividend to be paid during the third quarter of fiscal 2026. Apple states it intends to increase the dividend annually, subject to Board declaration.
Second-quarter results release. On April 30, 2026 Apple issued a press release reporting results for the fiscal quarter ended March 28, 2026, furnished under Item 2.02 of a Current Report on Form 8-K (accession 0000320193-26-000011).
No post-period acquisitions, divestitures, financings or litigation resolutions were disclosed. No business combination, asset sale, new debt issuance, credit facility or settlement was reported for the period between March 28, 2026 and the filing date, and no dollar-denominated transaction other than the capital-return actions above appears in the post-period disclosures.
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