Apple Inc.
AAPL10-Q,quarter ended Jun 28, 2025,filed Aug 1, 2025,Original on SEC.gov (opens in a new tab)
3 of 3 checkable figures match the filing, 4 of 4 risk excerpts located in the filing text
Coverage details
This summary passed the automatic coverage checks when it was generated.
Coverage does not verify every claim. Check the cited sources and the original filing.
The Print
Apple reported Q3 fiscal 2025 net income of $23.4B ($1.57 diluted EPS) on total net sales of $94.0B, up 9.6% from $85.8B a year earlier.
Total net sales increased 9.6% year over year to $94.0B. Management attributes the increase in the Americas to higher net sales of iPhone and Services, in Europe to higher net sales of Services and iPhone, in Greater China to higher net sales of iPhone and Mac, in Japan to higher net sales of iPhone and Services, and in Rest of Asia Pacific to higher net sales of Services and iPhone. iPhone growth was attributed to higher net sales of Pro models and Services growth to higher net sales from advertising, the App Store and cloud services. Products gross margin percentage decreased due primarily to tariffs and a different mix of products, partially offset by favorable costs.
- Total net sales rose to $94.0B from $85.8B, with iPhone up 13% to $44.6B and Services up 13% to $27.4B, per the revenue disaggregation in Note 2.
- Net income increased to $23.4B from $21.4B; diluted EPS rose to $1.57 from $1.40 while weighted-average diluted shares fell to 14,948,179 thousand from 15,348,175 thousand.
- Total gross margin percentage was 46.5% versus 46.3%, as Services gross margin percentage rose to 75.6% from 74.0% while Products gross margin percentage declined to 34.5% from 35.3%.
- iPad net sales fell 8% to $6.6B and Wearables, Home and Accessories fell 9% to $7.4B, the two product categories that declined in the quarter.
Results That Matter
- Total net sales
- Current period
- $94.0B
- Prior period
- $85.8B
- Change
- +9.6%
Growth was attributed by management to higher iPhone and Services net sales across most segments; iPhone rose 13% to $44,582M and Services rose 13% to $27,423M, while iPad and Wearables, Home and Accessories declined. - Gross margin
- Current period
- $43.7B
- Prior period
- $39.7B
- Change
- +10.2%
Total gross margin percentage was 46.5% versus 46.3%; Services gross margin percentage rose to 75.6% from 74.0% while Products gross margin percentage declined to 34.5% from 35.3%. - Operating income
- Current period
- $28.2B
- Prior period
- $25.4B
- Change
- +11.2%
Operating income rose while total operating expenses increased to $15,516M from $14,326M, with R&D up to $8,866M from $8,006M and SG&A up to $6,650M from $6,320M. - Net income
- Current period
- $23.4B
- Prior period
- $21.4B
- Change
- +9.3%
Net income rose alongside operating income; other income/(expense), net was $(171)M versus $142M, and the provision for income taxes was $4,597M versus $4,046M. - Diluted earnings per share
- Current period
- $1.57
- Prior period
- $1.40
- Change
- +12.1%
Diluted EPS grew faster than net income as weighted-average diluted shares fell to 14,948,179 thousand from 15,348,175 thousand. - Basic earnings per share
- Current period
- $1.57
- Prior period
- $1.40
- Change
- +12.1%
Basic EPS moved with net income and a lower weighted-average basic share count of 14,902,886 thousand versus 15,287,521 thousand.
| Metric | Current Period | Prior Period | Change | Investor Takeaway |
|---|---|---|---|---|
| $94.0B | $85.8B | +9.6% | Growth was attributed by management to higher iPhone and Services net sales across most segments; iPhone rose 13% to $44,582M and Services rose 13% to $27,423M, while iPad and Wearables, Home and Accessories declined. | |
| $43.7B | $39.7B | +10.2% | Total gross margin percentage was 46.5% versus 46.3%; Services gross margin percentage rose to 75.6% from 74.0% while Products gross margin percentage declined to 34.5% from 35.3%. | |
| $28.2B | $25.4B | +11.2% | Operating income rose while total operating expenses increased to $15,516M from $14,326M, with R&D up to $8,866M from $8,006M and SG&A up to $6,650M from $6,320M. | |
| $23.4B | $21.4B | +9.3% | Net income rose alongside operating income; other income/(expense), net was $(171)M versus $142M, and the provision for income taxes was $4,597M versus $4,046M. | |
| $1.57 | $1.40 | +12.1% | Diluted EPS grew faster than net income as weighted-average diluted shares fell to 14,948,179 thousand from 15,348,175 thousand. | |
| $1.57 | $1.40 | +12.1% | Basic EPS moved with net income and a lower weighted-average basic share count of 14,902,886 thousand versus 15,287,521 thousand. |
What changed
Quarter over quarter, against the 10-Q for the quarter ended Mar 29, 2025.
Prior 10-QRevenue down 1.4%; Net income down 5.4%
| Metric | Prior | Current | Change | Read as |
|---|---|---|---|---|
| Revenue | $95.4B | $94.0B | −1.4% | Unfavorable |
| Net income | $24.8B | $23.4B | −5.4% | Unfavorable |
| EPS (diluted) | $1.65 | $1.57 | −4.8% | Unfavorable |
- Revenue−1.4%Prior $95.4B, current $94.0BUnfavorable
- Net income−5.4%Prior $24.8B, current $23.4BUnfavorable
- EPS (diluted)−4.8%Prior $1.65, current $1.57Unfavorable
▲ 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
Reported operating income of $28,202M and net income of $23,434M include share-based compensation expense of $3,168M for the quarter, with a related income tax benefit of $(795)M. The filing discloses no adjusted or non-GAAP earnings measure. Products gross margin was reduced by tariffs, which management cites as a factor in the Products gross margin percentage decline.
Red flag
Red flag
Value Drivers & Capital Allocation
“During the third quarter of 2025, the Company repurchased $21.0 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion.”
Filing statement
Period net income attributable to the parent / period-end equity, not annualized: 35.6% (prior at 2024-06-29: 32.2%); period net income attributable to the parent / period-end assets, not annualized: 7.1%.
Forward Signals
No quantitative revenue or earnings guidance is provided in the filing. Management states it believes its cash, cash equivalents and marketable securities, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.
Known trends
- Tariffs and other measures: new U.S. tariffs were announced beginning in the second quarter of 2025, including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the EU, and further changes could be made, which can have a material adverse impact on the Company's business, results of operations and financial condition.
- The Company believes, in general, gross margins will be subject to volatility and downward pressure.
- The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in part to seasonal holiday demand.
Subsequent events
- Not disclosed—the filing reports no material events after June 28, 2025.
“The Company believes its balances of cash, cash equivalents and marketable securities, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.”
Apple Inc. (MD&A)
“The Company believes, in general, gross margins will be subject to volatility and downward pressure.”
Apple Inc. (MD&A)
Risks
Excerpts are the filing’s own words; each heading is the start of its excerpt. Selected excerpts are not a complete risk inventory.
Tariffs and other measures that are applied to the Company’s products or their components…
Tariffs and other measures that are applied to the Company’s products or their components can have a material adverse impact on the Company’s business, results of operations and financial condition, including impacting the Company’s supply chain, the availability of rare earths and other raw materials and components, pricing and gross margin.
Products gross margin percentage decreased during the third quarter of 2025 compared to the third…
Products gross margin percentage decreased during the third quarter of 2025 compared to the third quarter of 2024 due primarily to tariffs and a different mix of products, partially offset by favorable costs.
As of June 28, 2025, the Company had two customers that individually represented 10% or more…
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%.
As of June 28, 2025, the Company had two vendors that individually represented 10% or more of total…
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%.
4 of 4 excerpts located in the filing text
Segments
| Segment | Revenue | Operating Income | Revenue Change | Commentary |
|---|---|---|---|---|
| Americas | $41.2B | $16.5B | +9.3% | Management attributes the increase primarily to higher net sales of iPhone and Services, with weakness in foreign currencies relative to the U.S. dollar having an unfavorable year-over-year impact. |
| Europe | $24.0B | $10.5B | +9.7% | Management attributes the increase primarily to higher net sales of Services and iPhone. |
| Greater China | $15.4B | $5.8B | +4.4% | Management attributes the quarterly increase primarily to higher net sales of iPhone and Mac; iPhone revenue represented a moderately higher proportion of net sales in Greater China than in other segments. |
| Rest of Asia Pacific | $7.7B | $3.2B | +20.1% | Management attributes the increase primarily to higher net sales of Services and iPhone. |
| Japan | $5.8B | $2.9B | +13.4% | Management attributes the increase primarily to higher net sales of iPhone and Services, with strength in the yen relative to the U.S. dollar having a favorable year-over-year impact on Japan net sales during the quarter. |
Balance Sheet & Liquidity
Leverage: Identified debt as of 2025-06-28 (carrying amount): long-term debt including current maturities of $91.8B; noncurrent long-term debt of $82.4B; current portion of long-term debt of $9.3B. Not separately reported in this filing's standardized data: short-term borrowings. Total debt, net debt and debt-to-equity are therefore not stated.
Liquidity: Cash, cash equivalents and marketable securities totaled $132,986M at fair value ($36,269M cash and cash equivalents, $19,103M current marketable securities, $77,614M non-current marketable securities). Management states these balances, along with cash generated by ongoing operations 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.
Working capital: Current assets $122.5B vs. current liabilities $141.1B (current ratio 0.87x). Prior reported balance sheet as of 2024-09-28: $153.0B vs. $176.4B (0.87x).
Maturities & covenants
- Term debt: fixed-rate notes with an aggregate carrying amount of $91.8B versus $96.7B at September 28, 2024; fair value of the Notes was $80.4B based on Level 2 inputs.
- Manufacturing purchase obligations were $44.1B as of June 28, 2025, with $43.8B payable within 12 months.
- During the first nine months of 2025, the Company released from escrow €14.2 billion, or $15.4 billion, to Ireland in connection with the State Aid Decision, which fully settled the obligation.
Notable Footnotes
| Item | Impact |
|---|---|
| Deferred revenue | Total deferred revenue was $13.6B at June 28, 2025 versus $12.8B at September 28, 2024; the Company expects 66% to be realized in less than a year. |
| Share repurchase program | The Company repurchased 312 million shares for $69.3B during the nine months ended June 28, 2025; the programs do not obligate a minimum purchase amount. |
| Contingencies | Management states there was not at least a reasonable possibility of a material loss, or a material loss greater than a recorded accrual, concerning asserted legal and other claims. |
| Unrecognized share-based compensation | Total unrecognized compensation cost related to outstanding RSUs was $23.7B, expected to be recognized over a weighted-average period of 2.6 years. |
Ask AAPL’s 10-Q anything
Answers come from this filing, with cited passages you can check. Try one:
AI-generated. Informational only, not investment advice. May be incomplete or contain errors. The authoritative source is always the original SEC filing.