aapl-20250628

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-36743

Apple Inc.

(Exact name of Registrant as specified in its charter)


California						94-2404110
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Apple Park Way
Cupertino, California						95014
(Address of principal executive offices)						(Zip Code)

(408) 996-1010

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.00001 par value per share	AAPL	The Nasdaq Stock Market LLC
0.000% Notes due 2025	—	The Nasdaq Stock Market LLC
1.625% Notes due 2026	—	The Nasdaq Stock Market LLC
2.000% Notes due 2027	—	The Nasdaq Stock Market LLC
1.375% Notes due 2029	—	The Nasdaq Stock Market LLC
3.050% Notes due 2029	—	The Nasdaq Stock Market LLC
0.500% Notes due 2031	—	The Nasdaq Stock Market LLC
3.600% Notes due 2042	—	The Nasdaq Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

14,840,390,000 shares of common stock were issued and outstanding as of July 18, 2025.

Apple Inc.

Form 10-Q

For the Fiscal Quarter Ended June 28, 2025

TABLE OF CONTENTS


		Page
Part I
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4.	Controls and Procedures	19
Part II
Item 1.	Legal Proceedings	20
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3.	Defaults Upon Senior Securities	21
Item 4.	Mine Safety Disclosures	21
Item 5.	Other Information	21
Item 6.	Exhibits	22

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and per-share amounts)


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net sales:
Products	$	66,613	$	61,564	$	233,287	$	224,908
Services	27,423		24,213		80,408		71,197
Total net sales	94,036		85,777		313,695		296,105

Cost of sales:
Products	43,620		39,803		147,097		140,667
Services	6,698		6,296		19,738		18,634
Total cost of sales	50,318		46,099		166,835		159,301
Gross margin	43,718		39,678		146,860		136,804

Operating expenses:
Research and development	8,866		8,006		25,684		23,605
Selling, general and administrative	6,650		6,320		20,553		19,574
Total operating expenses	15,516		14,326		46,237		43,179

Operating income	28,202		25,352		100,623		93,625
Other income/(expense), net	(171)		142		(698)		250
Income before provision for income taxes	28,031		25,494		99,925		93,875
Provision for income taxes	4,597		4,046		15,381		14,875
Net income	$	23,434	$	21,448	$	84,544	$	79,000

Earnings per share:
Basic	$	1.57	$	1.40	$	5.64	$	5.13
Diluted	$	1.57	$	1.40	$	5.62	$	5.11

Shares used in computing earnings per share:
Basic	14,902,886		15,287,521		14,992,898		15,401,047
Diluted	14,948,179		15,348,175		15,051,726		15,463,175

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q3 2025 Form 10-Q | 1

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In millions)


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net income	$	23,434	$	21,448	$	84,544	$	79,000
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax	449		(73)		(86)		(87)

Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivative instruments	(523)		406		810		331
Adjustment for net (gains)/losses realized and included in net income	(571)		(87)		(415)		(678)
Total change in unrealized gains/losses on derivative instruments	(1,094)		319		395		(347)

Change in unrealized gains/losses on marketable debt securities, net of tax:
Change in fair value of marketable debt securities	640		268		90		3,306
Adjustment for net (gains)/losses realized and included in net income	(1)		30		404		164
Total change in unrealized gains/losses on marketable debt securities	639		298		494		3,470

Total other comprehensive income/(loss)	(6)		544		803		3,036
Total comprehensive income	$	23,428	$	21,992	$	85,347	$	82,036

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q3 2025 Form 10-Q | 2

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and par value)


	June 28, 2025		September 28, 2024
ASSETS:
Current assets:
Cash and cash equivalents	$	36,269	$	29,943
Marketable securities	19,103		35,228
Accounts receivable, net	27,557		33,410
Vendor non-trade receivables	19,278		32,833
Inventories	5,925		7,286
Other current assets	14,359		14,287
Total current assets	122,491		152,987

Non-current assets:
Marketable securities	77,614		91,479
Property, plant and equipment, net	48,508		45,680
Other non-current assets	82,882		74,834
Total non-current assets	209,004		211,993
Total assets	$	331,495	$	364,980

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	50,374	$	68,960
Other current liabilities	62,499		78,304
Deferred revenue	8,979		8,249
Commercial paper	9,923		9,967
Term debt	9,345		10,912
Total current liabilities	141,120		176,392

Non-current liabilities:
Term debt	82,430		85,750
Other non-current liabilities	42,115		45,888
Total non-current liabilities	124,545		131,638
Total liabilities	265,665		308,030

Commitments and contingencies

Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 14,856,722 and 15,116,786 shares issued and outstanding, respectively	89,806		83,276
Accumulated deficit	(17,607)		(19,154)
Accumulated other comprehensive loss	(6,369)		(7,172)
Total shareholders’ equity	65,830		56,950
Total liabilities and shareholders’ equity	$	331,495	$	364,980

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q3 2025 Form 10-Q | 3

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

(In millions, except per-share amounts)


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Total shareholders’ equity, beginning balances	$	66,796	$	74,194	$	56,950	$	62,146

Common stock and additional paid-in capital:
Beginning balances	88,711		78,815		83,276		73,812
Common stock issued	—		—		825		752
Common stock withheld related to net share settlement of equity awards	(2,163)		(1,920)		(4,260)		(3,802)
Share-based compensation	3,258		2,955		9,965		9,088
Ending balances	89,806		79,850		89,806		79,850

Retained earnings/(Accumulated deficit):
Beginning balances	(15,552)		4,339		(19,154)		(214)
Net income	23,434		21,448		84,544		79,000
Dividends and dividend equivalents declared	(3,912)		(3,864)		(11,525)		(11,384)
Common stock withheld related to net share settlement of equity awards	(411)		(428)		(1,598)		(1,517)
Common stock repurchased	(21,166)		(26,221)		(69,874)		(70,611)
Ending balances	(17,607)		(4,726)		(17,607)		(4,726)

Accumulated other comprehensive loss:
Beginning balances	(6,363)		(8,960)		(7,172)		(11,452)
Other comprehensive income/(loss)	(6)		544		803		3,036
Ending balances	(6,369)		(8,416)		(6,369)		(8,416)

Total shareholders’ equity, ending balances	$	65,830	$	66,708	$	65,830	$	66,708

Dividends and dividend equivalents declared per share or RSU	$	0.26	$	0.25	$	0.76	$	0.73

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q3 2025 Form 10-Q | 4

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)


	Nine Months Ended
	June 28, 2025		June 29, 2024
Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances	$	29,943	$	30,737

Operating activities:
Net income	84,544		79,000
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization	8,571		8,534
Share-based compensation expense	9,680		8,830

Other	(1,748)		(1,964)
Changes in operating assets and liabilities:
Accounts receivable, net	5,685		6,697
Vendor non-trade receivables	13,555		11,100
Inventories	1,223		41
Other current and non-current assets	(6,116)		(5,626)
Accounts payable	(18,479)		(15,171)
Other current and non-current liabilities	(15,161)		2
Cash generated by operating activities	81,754		91,443

Investing activities:
Purchases of marketable securities	(17,591)		(38,074)
Proceeds from maturities of marketable securities	35,036		39,838
Proceeds from sales of marketable securities	10,785		7,382
Payments for acquisition of property, plant and equipment	(9,473)		(6,539)

Other	(975)		(1,117)
Cash generated by investing activities	17,782		1,490

Financing activities:
Payments for taxes related to net share settlement of equity awards	(5,719)		(5,163)
Payments for dividends and dividend equivalents	(11,559)		(11,430)
Repurchases of common stock	(70,579)		(69,866)
Proceeds from issuance of term debt, net	4,481		—
Repayments of term debt	(9,682)		(7,400)
Repayments of commercial paper, net	(65)		(2,985)
Other	(87)		(191)
Cash used in financing activities	(93,210)		(97,035)

Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents	6,326		(4,102)
Cash, cash equivalents, and restricted cash and cash equivalents, ending balances	$	36,269	$	26,635

Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	37,332	$	19,230

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q3 2025 Form 10-Q | 5

Apple Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1 – Summary of Significant Accounting Policies

Basis of Presentation and Preparation

The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management estimates. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 28, 2024 (the “2024 Form 10-K”).

The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2025 and 2024 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

Note 2 – Revenue

The following table shows disaggregated net sales, as well as the portion of total net sales that was previously deferred, for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (in millions):


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
iPhone®	$	44,582	$	39,296	$	160,561	$	154,961
Mac®	8,046		7,009		24,982		22,240
iPad®	6,581		7,162		21,071		19,744
Wearables, Home and Accessories	7,404		8,097		26,673		27,963
Services	27,423		24,213		80,408		71,197
Total net sales	$	94,036	$	85,777	$	313,695	$	296,105

Portion of total net sales that was included in deferred revenue as of the beginning of the period	$	4,015	$	3,405	$	6,958	$	6,541

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information and Geographic Data” for the three- and nine-month periods ended June 28, 2025 and June 29, 2024, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of June 28, 2025 and September 28, 2024, the Company had total deferred revenue of $13.6 billion and $12.8 billion, respectively. As of June 28, 2025, the Company expects 66% of total deferred revenue to be realized in less than a year, 23% within one-to-two years, 9% within two-to-three years and 2% in greater than three years.

Apple Inc. | Q3 2025 Form 10-Q | 6

Note 3 – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (net income in millions and shares in thousands):


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Numerator:
Net income	$	23,434	$	21,448	$	84,544	$	79,000

Denominator:
Weighted-average basic shares outstanding	14,902,886		15,287,521		14,992,898		15,401,047
Effect of dilutive share-based awards	45,293		60,654		58,828		62,128
Weighted-average diluted shares	14,948,179		15,348,175		15,051,726		15,463,175

Basic earnings per share	$	1.57	$	1.40	$	5.64	$	5.13
Diluted earnings per share	$	1.57	$	1.40	$	5.62	$	5.11

Note 4 – Financial Instruments

Cash, Cash Equivalents and Marketable Securities

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of June 28, 2025 and September 28, 2024 (in millions):


	June 28, 2025
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	26,686	$	—	$	—	$	26,686	$	26,686	$	—	$	—
Level 1:
Money market funds	3,779		—		—		3,779		3,779		—		—
Mutual funds	646		134		(3)		777		—		777		—
Subtotal	4,425		134		(3)		4,556		3,779		777		—
Level 2 (1):
U.S. Treasury securities	15,775		46		(362)		15,459		1,030		3,649		10,780
U.S. agency securities	5,383		—		(189)		5,194		647		2,030		2,517
Non-U.S. government securities	6,756		43		(567)		6,232		297		795		5,140
Certificates of deposit and time deposits	3,177		—		—		3,177		3,113		51		13
Commercial paper	710		—		—		710		710		—		—
Corporate debt securities	49,671		212		(1,251)		48,632		7		11,576		37,049
Municipal securities	263		—		(3)		260		—		157		103
Mortgage- and asset-backed securities	23,424		90		(1,434)		22,080		—		68		22,012
Subtotal	105,159		391		(3,806)		101,744		5,804		18,326		77,614
Total	$	136,270	$	525	$	(3,809)	$	132,986	$	36,269	$	19,103	$	77,614

Apple Inc. | Q3 2025 Form 10-Q | 7


	September 28, 2024
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	27,199	$	—	$	—	$	27,199	$	27,199	$	—	$	—
Level 1:
Money market funds	778		—		—		778		778		—		—
Mutual funds	515		105		(3)		617		—		617		—
Subtotal	1,293		105		(3)		1,395		778		617		—
Level 2 (1):
U.S. Treasury securities	16,150		45		(516)		15,679		212		4,087		11,380
U.S. agency securities	5,431		—		(272)		5,159		155		703		4,301
Non-U.S. government securities	17,959		93		(484)		17,568		1,158		10,810		5,600
Certificates of deposit and time deposits	873		—		—		873		387		478		8
Commercial paper	1,066		—		—		1,066		28		1,038		—
Corporate debt securities	65,622		270		(1,953)		63,939		26		16,027		47,886
Municipal securities	412		—		(7)		405		—		190		215
Mortgage- and asset-backed securities	24,595		175		(1,403)		23,367		—		1,278		22,089
Subtotal	132,108		583		(4,635)		128,056		1,966		34,611		91,479
Total (2)(3)	$	160,600	$	688	$	(4,638)	$	156,650	$	29,943	$	35,228	$	91,479

(1)The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

(2)As of September 28, 2024, cash and cash equivalents included $2.6 billion held in escrow and restricted from general use. These restricted cash and cash equivalents were designated to settle the Company’s obligation related to the 2016 European Commission (the “Commission”) decision that Ireland granted state aid to the Company (the “State Aid Decision”), which was confirmed during the fourth quarter of 2024 by the European Court of Justice in a reversal of the 2020 judgment of the European General Court.

(3)As of September 28, 2024, current marketable securities included $13.2 billion held in escrow and restricted from general use. These restricted marketable securities were designated to settle the Company’s obligation related to the State Aid Decision.

As of June 28, 2025, 82% of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 14% between 5 and 10 years, and 4% greater than 10 years. As of June 28, 2025, 12% of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 11% between 5 and 10 years, and 77% greater than 10 years.

Derivative Instruments and Hedging

The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates.

Foreign Exchange Rate Risk

To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months.

To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of June 28, 2025, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 17 years.

The Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.

Apple Inc. | Q3 2025 Form 10-Q | 8

Interest Rate Risk

To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges.

The notional amounts of the Company’s outstanding derivative instruments as of June 28, 2025 and September 28, 2024, were as follows (in millions):


	June 28, 2025		September 28, 2024
Derivative instruments designated as accounting hedges:
Foreign exchange contracts	$	63,212	$	64,069
Interest rate contracts	$	12,875	$	14,575

Derivative instruments not designated as accounting hedges:
Foreign exchange contracts	$	78,649	$	91,493

As of June 28, 2025 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $12.5 billion and $13.5 billion, respectively.

Accounts Receivable

Trade Receivables

As of June 28, 2025, the Company had two customers that individually represented 10% or more of total trade receivables, which accounted for 18% and 10%. The Company’s third-party cellular network carriers accounted for 31% and 38% of total trade receivables as of June 28, 2025 and September 28, 2024, respectively. The Company requires third-party credit support or collateral from certain customers to limit credit risk.

Vendor Non-Trade Receivables

The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of June 28, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 48% and 14%. As of September 28, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 44% and 23%.

Note 5 – Condensed Consolidated Financial Statement Details

The following tables show the Company’s condensed consolidated financial statement details as of June 28, 2025 and September 28, 2024 (in millions):

Inventories


	June 28, 2025		September 28, 2024
Components	$	2,288	$	3,627
Finished goods	3,637		3,659
Total inventories	$	5,925	$	7,286

Property, Plant and Equipment, Net


	June 28, 2025		September 28, 2024
Gross property, plant and equipment	$	124,311	$	119,128
Accumulated depreciation	(75,803)		(73,448)
Total property, plant and equipment, net	$	48,508	$	45,680

Apple Inc. | Q3 2025 Form 10-Q | 9

SEC Form 10-Q filed by Apple Inc.