Apple Inc.
AAPL10-Q,quarter ended Mar 28, 2026,filed May 1, 2026,Original on SEC.gov (opens in a new tab)
3 of 3 checkable figures match the filing, 2 of 3 risk excerpts located in the filing text, 1 withheld
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The Print
Apple reported Q2 FY2026 net income of $29.6B ($2.01 diluted EPS) on total net sales of $111.2B, up 16.6% from $95.4B a year earlier.
Total net sales increased 16.6% YoY to $111.2B from $95.4B, and net income increased 19.4% YoY to $29.6B from $24.8B. Gross margin expanded to 49.3% from 47.1%, and operating income rose 21.3% YoY to $35.9B from $29.6B. The filing does not state a cause for these movements in the provided excerpts.
- Total net sales rose 16.6% YoY to $111.2B, with Products at $80.2B and Services at $31.0B.
- Net income increased 19.4% YoY to $29.6B; diluted EPS rose to $2.01 from $1.65.
- Gross margin expanded to 49.3% from 47.1%, and operating income rose 21.3% YoY to $35.9B.
- Cash generated by operating activities for the six months was $82.6B versus $53.9B a year earlier.
Results That Matter
- Total net sales
- Current period
- $111.2B
- Prior period
- $95.4B
- Change
- +16.6%
Total net sales increased 16.6% YoY, with Products at $80,208M and Services at $30,976M in the current quarter. - Gross margin
- Current period
- $54.8B
- Prior period
- $44.9B
- Change
- +22.1%
Gross margin increased 22.1% YoY; gross margin rate was 49.3% versus 47.1%. - Operating income
- Current period
- $35.9B
- Prior period
- $29.6B
- Change
- +21.3%
Operating income increased 21.3% YoY; operating margin was 32.3% versus 31.0%. - Net income
- Current period
- $29.6B
- Prior period
- $24.8B
- Change
- +19.4%
Net income increased 19.4% YoY; net margin was 26.6% versus 26.0%. - Diluted earnings per share
- Current period
- $2.01
- Prior period
- $1.65
- Change
- +21.8%
Diluted EPS increased 21.8% YoY; weighted-average diluted shares were 14,725,873 thousand versus 15,056,133 thousand.
| Metric | Current Period | Prior Period | Change | Investor Takeaway |
|---|---|---|---|---|
| $111.2B | $95.4B | +16.6% | Total net sales increased 16.6% YoY, with Products at $80,208M and Services at $30,976M in the current quarter. | |
| $54.8B | $44.9B | +22.1% | Gross margin increased 22.1% YoY; gross margin rate was 49.3% versus 47.1%. | |
| $35.9B | $29.6B | +21.3% | Operating income increased 21.3% YoY; operating margin was 32.3% versus 31.0%. | |
| $29.6B | $24.8B | +19.4% | Net income increased 19.4% YoY; net margin was 26.6% versus 26.0%. | |
| $2.01 | $1.65 | +21.8% | Diluted EPS increased 21.8% YoY; weighted-average diluted shares were 14,725,873 thousand versus 15,056,133 thousand. |
What changed
Quarter over quarter, against the 10-Q for the quarter ended Dec 27, 2025.
Prior 10-QRevenue down 22.7%; Net income down 29.7%
| Metric | Prior | Current | Change | Read as |
|---|---|---|---|---|
| Revenue | 143.8B | 111.2B | −22.7% | Unfavorable |
| Net income | 42.1B | 29.6B | −29.7% | Unfavorable |
| EPS (diluted) | 2.84 | 2.01 | −29.2% | Unfavorable |
- Revenue−22.7%Prior 143.8B, current 111.2BUnfavorable
- Net income−29.7%Prior 42.1B, current 29.6BUnfavorable
- EPS (diluted)−29.2%Prior 2.84, current 2.01Unfavorable
▲ and ▼ show the direction of each change. Color and “Read as” show whether that direction is usually favorable for the metric.
Earnings Quality & Cash Conversion
The filing reports net income of $29,578M for the three months ended March 28, 2026, with no adjusted or ex-item earnings total defined in the provided excerpts. Other income/(expense), net was $(52)M for the quarter and $98M for the six months.
Value Drivers & Capital Allocation
“The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases.”
Filing statement
Period net income (numerator scope unestablished) / period-end equity, not annualized: 27.8% (prior at 2025-03-29: 37.1%); period net income (numerator scope unestablished) / period-end assets, not annualized: 8.0%.
Forward Signals
No guidance is provided in the filing excerpts; the filing states that forward-looking statements involve risks and uncertainties and provides current expectations of future events based on certain assumptions.
Known trends
- As of March 28, 2026, the Company expects 64% of total deferred revenue to be realized in less than a year, 23% within one-to-two years, 11% within two-to-three years and 2% in greater than three years.
Subsequent events
- Not disclosed—no material subsequent events are described in the provided excerpts.
Risks
Excerpts are the filing’s own words; each heading is the start of its excerpt. Selected excerpts are not a complete risk inventory.
The Company is subject to various legal proceedings and claims that have arisen in the ordinary…
The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved.
The Company has entered into certain off–balance sheet commitments that require the future purchase…
The Company has entered into certain off–balance sheet commitments that require the future purchase of goods or services (“unconditional purchase obligations”).
2 of 3 excerpts located in the filing text · 1 withheld because the evidence could not be matched
Balance Sheet & Liquidity
Leverage: Identified debt as of 2026-03-28: reported debt balance of unestablished maturity scope of $74.4B. The concept behind this balance does not establish which maturities it covers. Total debt, net debt and debt-to-equity are therefore not stated.
Liquidity: Total cash, cash equivalents and marketable securities were $146,595M as of March 28, 2026, versus $132,420M as of September 27, 2025. Cash generated by operating activities was $82,627M for the six months ended March 28, 2026.
Working capital: Total current assets were $144,114M and total current liabilities were $134,641M as of March 28, 2026, resulting in working capital of $9,473M and a current ratio of approximately 1.07. As of September 27, 2025, total current assets were $147,957M and total current liabilities were $165,631M, resulting in working capital of $(17,674)M.
Maturities & covenants
- As of March 28, 2026 and September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $82.7 billion and $90.7 billion, respectively.
- As of March 28, 2026 and September 27, 2025, the fair value of the Company’s Notes, based on Level 2 inputs, was $70.8 billion and $80.4 billion, respectively.
Notable Footnotes
| Item | Impact |
|---|---|
| Deferred revenue | Total deferred revenue was $14.7 billion as of March 28, 2026, up from $13.7 billion as of September 27, 2025. |
| Share-based compensation | Unrecognized compensation cost related to outstanding RSUs was $28.8 billion as of March 28, 2026, expected to be recognized over a weighted-average period of 2.8 years. |
| Intangible assets | Gross intangible assets increased to $37,767M as of March 28, 2026 from $24,950M as of September 27, 2025; net intangible assets were $25,797M versus $13,301M. |
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