Published
# Apple Inc. (AAPL) — Narrative, FY2026 Q3 Fiscal year ends the last Saturday of September. The latest annual report is the FY2025 Form 10-K (year ended September 27, 2025; accession 0000320193-25-000079). The latest interim report is the Form 10-Q for the quarter ended June 27, 2026 (accession 0000320193-26-000020). --- ## 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):** | Segment | 2025 | Change | 2024 | |---|---|---|---| | Americas | 178,353 | +7% | 167,045 | | Europe | 111,032 | +10% | 101,328 | | Greater China | 64,377 | (4)% | 66,952 | | Japan | 28,703 | +15% | 25,052 | | Rest of Asia Pacific | 33,696 | +10% | 30,658 | | **Total** | **416,161** | **+6%** | **391,035** | 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):** | Category | 2025 | Change | 2024 | |---|---|---|---| | iPhone | 209,586 | +4% | 201,183 | | Mac | 33,708 | +12% | 29,984 | | iPad | 28,023 | +5% | 26,694 | | Wearables, Home and Accessories | 35,686 | (4)% | 37,005 | | Services | 109,158 | +14% | 96,169 | | **Total** | **416,161** | **+6%** | **391,035** | 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):** | Segment | Q3 FY26 | Q3 FY25 | Change | 9M FY26 | 9M FY25 | Change | |---|---|---|---|---|---|---| | Americas | 45,781 | 41,198 | +11% | 149,403 | 134,161 | +11% | | Europe | 29,395 | 24,014 | +22% | 95,596 | 82,329 | +16% | | Greater China | 18,816 | 15,369 | +22% | 64,839 | 49,884 | +30% | | Japan | 6,554 | 5,782 | +13% | 24,368 | 22,067 | +10% | | Rest of Asia Pacific | 8,871 | 7,673 | +16% | 30,151 | 25,254 | +19% | | **Total** | **109,417** | **94,036** | **+16%** | **364,357** | **313,695** | **+16%** | 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):** | Category | Q3 FY26 | Q3 FY25 | Change | 9M FY26 | 9M FY25 | Change | |---|---|---|---|---|---|---| | iPhone | 54,252 | 44,582 | +22% | 196,515 | 160,561 | +22% | | Mac | 10,352 | 8,046 | +29% | 27,137 | 24,982 | +9% | | iPad | 6,191 | 6,581 | (6)% | 21,700 | 21,071 | +3% | | Wearables, Home and Accessories | 7,883 | 7,404 | +6% | 27,277 | 26,673 | +2% | | Services | 30,739 | 27,423 | +12% | 91,728 | 80,408 | +14% | | **Total** | **109,417** | **94,036** | **+16%** | **364,357** | **313,695** | **+16%** | 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.