# Apple Inc. (AAPL)

Informational only - not investment advice.

CIK: 0000320193
SIC: 3571 Electronic Computers
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3571 Electronic Computers](/industry/3571/)
Latest 10-K filed: 2025-10-31
SEC page: https://www.sec.gov/edgar/browse/?CIK=320193
Filing source: https://www.sec.gov/Archives/edgar/data/320193/000032019325000079/aapl-20250927.htm

## At a glance

FY2025 · period end 2025-09-27 · filed 2025-10-31 · accession 0000320193-25-000079 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000320193.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 416,161,000,000 USD | 2025 | verified |
| Net income | 112,010,000,000 USD | 2025 | verified |
| Assets | 359,241,000,000 USD | 2025 | verified |
| Free cash flow | 98,767,000,000 USD | 2025 | computed |
| Net margin | 26.92% | 2025 | computed |
| Operating margin | 31.97% | 2025 | computed |
| Revenue YoY | +6.43% | 2025 | computed |
| ROE | 151.91% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Big-tech megacap platforms](/compare/big-tech/) · SIC 3571 Electronic Computers

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including AAPL

- Big-tech megacap platforms: [peer review](/compare/big-tech/) · [market-risk page](/compare/big-tech/risk/)

### Peer percentile fingerprint

| Ratio | AAPL | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 26.9% | 7.7% | 96 | 110 |
| Operating margin | 32.0% | 13.1% | 96 | 104 |
| Revenue growth | 6.4% | 5.8% | 51 | 111 |
| FCF margin | 23.7% | 9.6% | 90 | 103 |
| ROE | 151.9% | 11.7% | 100 | 108 |
| ROA | 31.2% | 5.6% | 98 | 111 |
| Liabilities / equity | 3.87 | 1.10 | 93 | 108 |
| Current ratio | 0.89 | 2.02 | 2 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 416161000000 | USD | 2025 | 2025-10-31 |
| Net income | 112010000000 | USD | 2025 | 2025-10-31 |
| Assets | 359241000000 | USD | 2025 | 2025-10-31 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-10-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000320193.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 229,234,000,000 | 265,595,000,000 | 260,174,000,000 | 274,515,000,000 | 365,817,000,000 | 394,328,000,000 | 383,285,000,000 | 391,035,000,000 | 416,161,000,000 |
| Net income | 45,687,000,000 | 48,351,000,000 | 59,531,000,000 | 55,256,000,000 | 57,411,000,000 | 94,680,000,000 | 99,803,000,000 | 96,995,000,000 | 93,736,000,000 | 112,010,000,000 |
| Operating income | 60,024,000,000 | 61,344,000,000 | 70,898,000,000 | 63,930,000,000 | 66,288,000,000 | 108,949,000,000 | 119,437,000,000 | 114,301,000,000 | 123,216,000,000 | 133,050,000,000 |
| Gross profit | 84,263,000,000 | 88,186,000,000 | 101,839,000,000 | 98,392,000,000 | 104,956,000,000 | 152,836,000,000 | 170,782,000,000 | 169,148,000,000 | 180,683,000,000 | 195,201,000,000 |
| Diluted EPS | 8.31 | 9.21 | 2.98 | 2.97 | 3.28 | 5.61 | 6.11 | 6.13 | 6.08 | 7.46 |
| Operating cash flow | 66,231,000,000 | 64,225,000,000 | 77,434,000,000 | 69,391,000,000 | 80,674,000,000 | 104,038,000,000 | 122,151,000,000 | 110,543,000,000 | 118,254,000,000 | 111,482,000,000 |
| Capital expenditures | 12,734,000,000 | 12,451,000,000 | 13,313,000,000 | 10,495,000,000 | 7,309,000,000 | 11,085,000,000 | 10,708,000,000 | 10,959,000,000 | 9,447,000,000 | 12,715,000,000 |
| Dividends paid | 12,150,000,000 | 12,769,000,000 | 13,712,000,000 | 14,119,000,000 | 14,081,000,000 | 14,467,000,000 | 14,841,000,000 | 15,025,000,000 | 15,234,000,000 | 15,421,000,000 |
| Share buybacks | 29,722,000,000 | 32,900,000,000 | 72,738,000,000 | 66,897,000,000 | 72,358,000,000 | 85,971,000,000 | 89,402,000,000 | 77,550,000,000 | 94,949,000,000 | 90,711,000,000 |
| Assets | 321,686,000,000 | 375,319,000,000 | 365,725,000,000 | 338,516,000,000 | 323,888,000,000 | 351,002,000,000 | 352,755,000,000 | 352,583,000,000 | 364,980,000,000 | 359,241,000,000 |
| Liabilities | 193,437,000,000 | 241,272,000,000 | 258,578,000,000 | 248,028,000,000 | 258,549,000,000 | 287,912,000,000 | 302,083,000,000 | 290,437,000,000 | 308,030,000,000 | 285,508,000,000 |
| Stockholders' equity | 128,249,000,000 | 134,047,000,000 | 107,147,000,000 | 90,488,000,000 | 65,339,000,000 | 63,090,000,000 | 50,672,000,000 | 62,146,000,000 | 56,950,000,000 | 73,733,000,000 |
| Cash and cash equivalents | 20,484,000,000 | 20,289,000,000 | 25,913,000,000 | 48,844,000,000 | 38,016,000,000 | 34,940,000,000 | 23,646,000,000 | 29,965,000,000 | 29,943,000,000 | 35,934,000,000 |
| Free cash flow | 53,497,000,000 | 51,774,000,000 | 64,121,000,000 | 58,896,000,000 | 73,365,000,000 | 92,953,000,000 | 111,443,000,000 | 99,584,000,000 | 108,807,000,000 | 98,767,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 21.09% | 22.41% | 21.24% | 20.91% | 25.88% | 25.31% | 25.31% | 23.97% | 26.92% |
| Operating margin |  | 26.76% | 26.69% | 24.57% | 24.15% | 29.78% | 30.29% | 29.82% | 31.51% | 31.97% |
| Return on equity | 35.62% | 36.07% | 55.56% | 61.06% | 87.87% | 150.07% | 196.96% | 156.08% | 164.59% | 151.91% |
| Return on assets | 14.20% | 12.88% | 16.28% | 16.32% | 17.73% | 26.97% | 28.29% | 27.51% | 25.68% | 31.18% |
| Liabilities / equity | 1.51 | 1.80 | 2.41 | 2.74 | 3.96 | 4.56 | 5.96 | 4.67 | 5.41 | 3.87 |
| Current ratio | 1.35 | 1.28 | 1.13 | 1.54 | 1.36 | 1.07 | 0.88 | 0.99 | 0.87 | 0.89 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/AAPL/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000320193.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-06-25 |  |  | 1.20 | reported discrete quarter |
| 2023-Q2 | 2023-04-01 |  |  | 1.52 | reported discrete quarter |
| 2023-Q3 | 2023-07-01 |  |  | 1.26 | reported discrete quarter |
| 2023-Q4 | 2023-09-30 | 89,498,000,000 | 22,956,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-30 | 119,575,000,000 | 33,916,000,000 | 2.18 | reported discrete quarter |
| 2024-Q2 | 2024-03-30 | 90,753,000,000 | 23,636,000,000 | 1.53 | reported discrete quarter |
| 2024-Q3 | 2024-06-29 | 85,777,000,000 | 21,448,000,000 | 1.40 | reported discrete quarter |
| 2024-Q4 | 2024-09-28 | 94,930,000,000 | 14,736,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-28 | 124,300,000,000 | 36,330,000,000 | 2.40 | reported discrete quarter |
| 2025-Q2 | 2025-03-29 | 95,359,000,000 | 24,780,000,000 | 1.65 | reported discrete quarter |
| 2025-Q3 | 2025-06-28 | 94,036,000,000 | 23,434,000,000 | 1.57 | reported discrete quarter |
| 2025-Q4 | 2025-09-27 | 102,466,000,000 | 27,466,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-27 | 143,756,000,000 | 42,097,000,000 | 2.84 | reported discrete quarter |
| 2026-Q2 | 2026-03-28 | 111,184,000,000 | 29,578,000,000 | 2.01 | reported discrete quarter |
| 2026-Q3 | 2026-06-27 | 109,417,000,000 | 29,789,000,000 | 2.02 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AAPL's latest 10-K: [/company/AAPL/business/](/company/AAPL/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AAPL's latest 10-K: [/company/AAPL/risk-factors/](/company/AAPL/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/320193/000032019326000020/aapl-20260627.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-06-27

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Item and other sections of this Quarterly Report on Form 10-Q (“Form 10-Q”) contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. For example, statements in this Form 10-Q regarding the potential future impact of macroeconomic conditions and tariffs and other measures on the Company’s business and results of operations are forward-looking statements. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of the 2025 Form 10-K and Part II, Item 1A of this Form 10-Q, in each case under the heading “Risk Factors.” The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.

Unless otherwise stated, all information presented herein is based on the Company’s fiscal calendar, and references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

The following discussion should be read in conjunction with the 2025 Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q.

Available Information

The Company periodically provides certain information for investors on its corporate website, www.apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, information on corporate governance, and details related to the Company’s annual meeting of shareholders. The information contained on the websites referenced in this Form 10-Q is not incorporated by reference into this filing. Further, the Company’s references to website URLs are intended to be inactive textual references only.

Business Seasonality and Product Introductions

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. Additionally, new product and service introductions can significantly impact net sales, cost of sales and operating expenses. The timing of product introductions can also impact the Company’s net sales to its indirect distribution channels as these channels are filled with new inventory following a product launch, and channel inventory of an older product often declines as the launch of a newer product approaches. Net sales can also be affected when consumers and distributors anticipate a product introduction.

During the third quarter of 2026, the Company announced iOS 27, macOS® 27 Golden Gate, iPadOS® 27, watchOS® 27, visionOS® 27 and tvOS® 27, and introduced Siri AI.

Macroeconomic Conditions

Macroeconomic conditions, including inflation, interest rates, component pricing and currency fluctuations, have directly and indirectly impacted, and could in the future materially impact, the Company’s results of operations and financial condition.

The Company is experiencing a period of supply constraints and increasing costs for components driven by factors such as industry supply-demand imbalances for components, including advanced semiconductors, storage (NAND) and memory (DRAM). The Company expects these trends to intensify, which may materially negatively impact the Company’s revenue, costs, gross margin, results of operations and financial condition. Actions, such as price increases, that have been and may in the future be taken by the Company may not effectively mitigate these negative impacts, and may also reduce demand for the Company’s products and materially adversely affect the Company’s revenue, costs, gross margin, results of operations and financial condition.

Apple Inc. | Q3 2026 Form 10-Q | 13

Tariffs and Other Measures

Beginning in the second quarter of 2025, new tariffs were announced on imports to the U.S., including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the European Union (“EU”), among others. In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the U.S. and other retaliatory measures. On January 14, 2026, initial results were published of the previously announced U.S. Department of Commerce investigation under Section 232 of the Trade Expansion Act of 1962, as amended, into imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including downstream products that contain semiconductors. The announcement of the initial results of the investigation did not impose any additional tariffs affecting the Company’s products. Separately, on February 20, 2026, the U.S. Supreme Court (“Supreme Court”) issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act of 1977. The Company has applied for a refund of tariffs paid, following the processes established by U.S. Customs and Border Protection, and has recognized any refunds received as a reduction of products cost of sales. Various modifications to U.S. tariffs have been announced, including the recent imposition of tariffs under Section 301 of the Trade Act of 1974, and further changes could be made in the future, which may include additional measures under the Section 232 semiconductor sector investigation, additional sector-based tariffs, further actions under Section 301, or other measures. 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. The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S. tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures. Trade and other international disputes can have an adverse impact on the overall macroeconomic environment and result in shifts and reductions in consumer spending and negative consumer sentiment for the Company’s products and services, all of which can further adversely affect the Company’s business and results of operations.

Segment Operating Performance

The following table shows net sales by reportable segment for the three- and nine-month periods ended June 27, 2026 and June 28, 2025 (dollars in millions):

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["","June 27, 2026","","June 28, 2025","","Change","","June 27, 2026","","June 28, 2025","","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 net sales","$","109,417","","","$","94,036","","","16%","","","$","364,357","","","$","313,695","","","16%"]]
[[/GREPCENT_TABLE]]

Americas

Americas net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales of iPhone, Services and Mac.

Europe

Europe net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales of iPhone, Services and Mac. The strength in foreign currencies relative to the U.S. dollar had a net favorable year-over-year impact on Europe net sales during the first nine months of 2026.

Greater China

Greater China net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales of iPhone. The strength in the renminbi relative to the U.S. dollar had a favorable year-over-year impact on Greater China net sales during the third quarter and first nine months of 2026.

Apple Inc. | Q3 2026 Form 10-Q | 14

Japan

Japan net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 due to higher net sales of iPhone. The weakness in the yen relative to the U.S. dollar had an unfavorable year-over-year impact on Japan net sales during the third quarter and first nine months of 2026.

Rest of Asia Pacific

Rest of Asia Pacific net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales of iPhone, Services and Mac. The strength in foreign currencies relative to the U.S. dollar had a net favorable year-over-year impact on Rest of Asia Pacific net sales during the third quarter of 2026.

Products and Services Performance

The following table shows net sales by category for the three- and nine-month periods ended June 27, 2026 and June 28, 2025 (dollars in millions):

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["","June 27, 2026","","June 28, 2025","","Change","","June 27, 2026","","June 28, 2025","","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 net sales","$","109,417","","","$","94,036","","","16%","","","$","364,357","","","$","313,695","","","16%"]]
[[/GREPCENT_TABLE]]

iPhone

iPhone net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales of Pro models.

Mac

Mac net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 due to higher net sales of laptops.

iPad

iPad net sales decreased during the third quarter of 2026 compared to the third quarter of 2025 primarily due to lower net sales of iPad mini® and iPad Air®. Year-over-year iPad net sales increased during the first nine months of 2026 primarily due to higher net sales of iPad, partially offset by lower net sales of iPad mini.

Wearables, Home and Accessories

Wearables, Home and Accessories net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 due to higher net sales of Accessories and Wearables.

Services

Services net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales from advertising and cl

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/320193/000032019325000079/aapl-20250927.htm
Complete FY 2025 MD&A: /company/AAPL/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-10-31
Report date: 2025-09-27

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes included in Part II, Item 8 of this Form 10-K. This Item generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 are not included, and can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024.

Product, Service and Software Announcements

The Company announces new product, service and software offerings at various times during the year. Significant announcements during fiscal year 2025 included the following:

First Quarter 2025:

•MacBook Pro

•Mac mini

•iMac

•iPad mini

Second Quarter 2025:

•iPhone 16e

•iPad Air

•iPad

•MacBook Air

•Mac Studio

Third Quarter 2025:

•iOS 26, macOS Tahoe 26, iPadOS 26, watchOS 26, visionOS 26 and tvOS 26

Fourth Quarter 2025:

•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

Fiscal Period

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, which occurred in the first quarter of 2023. The Company’s fiscal years 2025 and 2024 spanned 52 weeks each, whereas fiscal year 2023 spanned 53 weeks.

Macroeconomic Conditions

Macroeconomic conditions, including inflation, interest rates and currency fluctuations, have directly and indirectly impacted, and could in the future materially impact, the Company’s results of operations and financial condition.

Apple Inc. | 2025 Form 10-K | 21

Tariffs and Other Measures

Beginning in the second quarter of 2025, new U.S. Tariffs were announced, including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the EU, among others. In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the U.S. and other retaliatory measures. Various modifications to the U.S. Tariffs have been announced and further changes could be made in the future, which may include additional sector-based tariffs or other measures. For example, the U.S. Department of Commerce has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, into, among other things, imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including downstream products that contain semiconductors. 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. The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S. Tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures. Trade and other international disputes can have an adverse impact on the overall macroeconomic environment and result in shifts and reductions in consumer spending and negative consumer sentiment for the Company’s products and services, all of which can further adversely affect the Company’s business and results of operations.

Segment Operating Performance

The following table shows net sales by reportable segment for 2025, 2024 and 2023 (dollars in millions):

[[GREPCENT_TABLE]]
[["","2025","","Change","","2024","","Change","","2023"],["Americas","$","178,353","","","7","%","","$","167,045","","","3","%","","$","162,560"],["Europe","111,032","","","10","%","","101,328","","","7","%","","94,294"],["Greater China","64,377","","","(4)","%","","66,952","","","(8)","%","","72,559"],["Japan","28,703","","","15","%","","25,052","","","3","%","","24,257"],["Rest of Asia Pacific","33,696","","","10","%","","30,658","","","4","%","","29,615"],["Total net sales","$","416,161","","","6","%","","$","391,035","","","2","%","","$","383,285"]]
[[/GREPCENT_TABLE]]

Americas

Americas net sales increased during 2025 compared to 2024 primarily due to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Americas net sales during 2025.

Europe

Europe net sales increased during 2025 compared to 2024 primarily due to higher net sales of Services, iPhone and Mac.

Greater China

Greater China net sales decreased during 2025 compared to 2024 primarily due to lower net sales of iPhone, partially offset by higher net sales of Mac.

Japan

Japan net sales increased during 2025 compared to 2024 primarily due to higher net sales of iPhone, Services and iPad.

Rest of Asia Pacific

Rest of Asia Pacific net sales increased during 2025 compared to 2024 primarily due to higher net sales of iPhone, Services and Mac.

Apple Inc. | 2025 Form 10-K | 22

Products and Services Performance

The following table shows net sales by category for 2025, 2024 and 2023 (dollars in millions):

[[GREPCENT_TABLE]]
[["","2025","","Change","","2024","","Change","","2023"],["iPhone","$","209,586","","","4","%","","$","201,183","","","\u2014","%","","$","200,583"],["Mac","33,708","","","12","%","","29,984","","","2","%","","29,357"],["iPad","28,023","","","5","%","","26,694","","","(6)","%","","28,300"],["Wearables, Home and Accessories","35,686","","","(4)","%","","37,005","","","(7)","%","","39,845"],["Services (1)","109,158","","","14","%","","96,169","","","13","%","","85,200"],["Total net sales","$","416,161","","","6","%","","$","391,035","","","2","%","","$","383,285"]]
[[/GREPCENT_TABLE]]

(1)Services net sales include amortization of the deferred value of services bundled in the sales price of certain products.

iPhone

iPhone net sales increased during 2025 compared to 2024 due to higher net sales of Pro models.

Mac

Mac net sales increased during 2025 compared to 2024 primarily due to higher net sales of laptops and desktops.

iPad

iPad net sales increased during 2025 compared to 2024 primarily due to higher net sales of iPad Air, iPad mini and iPad, partially offset by lower net sales of iPad Pro.

Wearables, Home and Accessories

Wearables, Home and Accessories net sales decreased during 2025 compared to 2024 primarily due to lower net sales of Accessories and Wearables.

Services

Services net sales increased during 2025 compared to 2024 primarily due to higher net sales from advertising, the App Store and cloud services.

Apple Inc. | 2025 Form 10-K | 23

Gross Margin

Products and Services gross margin and gross margin percentage for 2025, 2024 and 2023 were as follows (dollars in millions):

[[GREPCENT_TABLE]]
[["","2025","","2024","","2023"],["Gross margin:"],["Products","$","112,887","","","$","109,633","","","$","108,803"],["Services","82,314","","","71,050","","","60,345"],["Total gross margin","$","195,201","","","$","180,683","","","$","169,148"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["Gross margin percentage:"],["Products","36.8","%","","37.2","%","","36.5","%"],["Services","75.4","%","","73.9","%","","70.8","%"],["Total gross margin percentage","46.9","%","","46.2","%","","44.1","%"]]
[[/GREPCENT_TABLE]]

Products Gross Margin

Products gross margin increased during 2025 compared to 2024 primarily due to favorable costs and a different mix of products, partially offset by tariff costs.

Products gross margin percentage decreased during 2025 compared to 2024 primarily due to a different mix of products and tariff costs, partially offset by other favorable costs.

Services Gross Margin

Services gross margin increased during 2025 compared to 2024 primarily due to higher Services net sales and a different mix of services.

Services gross margin percentage increased during 2025 compared to 2024 primarily due to a different mix of services, partially offset by higher costs.

The Company’s future gross margins can be impacted by a variety of factors, as discussed in Part I, Item 1A of this Form 10-K under the heading “Risk Factors.” As a result, the Company believes, in general, gross margins will be subject to volatility and downward pressure.

Operating Expenses

Operating expenses for 2025, 2024 and 2023 were as follows (dollars in millions):

[[GREPCENT_TABLE]]
[["","2025","","Change","","2024","","Change","","2023"],["Research and development","$","34,550","","","10","%","","$","31,370","","","5","%","","$","29,915"],["Percentage of total net sales","8","%","","","","8","%","","","","8","%"],["Selling, general and administrative","$","27,601","","","6","%","","$","26,097","","","5","%","","$","24,932"],["Percentage of total net sales","7","%","","","","7","%","","","","7","%"],["Total operating expenses","$","62,151","","","8","%","","$","57,467","","","5","%","","$","54,847"],["Percentage of total net sales","15","%","","","","15","%","","","","14","%"]]
[[/GREPCENT_TABLE]]

Research and Development

The growth in R&D expense during 2025 compared to 2024 was primarily driven by increases in headcount-related expenses and infrastructure-related costs.

Selling, General and Administrative

The growth in selling, general and administrative expense during 2025 compared to 2024 was primarily driven by increases in headcount-related expenses and variable selling expenses.

Apple Inc. | 2025 Form 10-K | 24

Provision for Income Taxes

Provision for income taxes, effective tax rate and statutory federal income tax rate for 2025, 2024 and 2023 were as follows (dollars in millions):

[[GREPCENT_TABLE]]
[["","2025","","2024","","2023"],["Provision for income taxes","$","20,719","","","$","29,749","","","$","16,741"],["Effective tax rate","15.6","%","","24.1","%","","14.7","%"],["Statutory federal income tax rate","21","%","","21","%","","21","%"]]
[[/GREPCENT_TABLE]]

The Company’s effective tax rate for 2025 was lower than the statutory federal income tax rate primarily due to a lower effective tax rate on foreign earnings, including the impact of changes in unrecognized tax benefits, the impact of the U.S. federal R&D credit, and tax benefits from share-based compensation, partially offset by a change in valuation allowance and state income taxes.

The Company’s effective tax rate for 2025 was lower compared to 2024 due to a $10.7 billion year-over-year decrease in the provision for income taxes related to the State Aid Decision (refer to Note 7, “Income Taxes” in the Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K) and the impact of changes in unrecognized tax benefits, partially offset by a change in valuation allowance and a higher effective tax rate on foreign earnings.

Liquidity and Capital Resources

The Company believes its balances of cash, cash equivalents and marketable securities, which totaled $132.4 billion as of September 27, 2025, 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.

The Company’s material cash requirements include the following contractual obligations:

Debt

As of September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate principal amount of $91.3 billion (collectively the “Notes”), with $12.4 billion payable within 12 months. Future interest payments associated

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AAPL/mda/fy2025/
All MD&A years: /company/AAPL/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AAPL/mda/fy2024/): filed 2024-11-01; accession 0000320193-24-000123 (https://www.sec.gov/Archives/edgar/data/320193/000032019324000123/aapl-20240928.htm)
- [FY 2023 MD&A](/company/AAPL/mda/fy2023/): filed 2023-11-03; accession 0000320193-23-000106 (https://www.sec.gov/Archives/edgar/data/320193/000032019323000106/aapl-20230930.htm)
- [FY 2022 MD&A](/company/AAPL/mda/fy2022/): filed 2022-10-28; accession 0000320193-22-000108 (https://www.sec.gov/Archives/edgar/data/320193/000032019322000108/aapl-20220924.htm)
- [FY 2021 MD&A](/company/AAPL/mda/fy2021/): filed 2021-10-29; accession 0000320193-21-000105 (https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/aapl-20210925.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3571 Electronic Computers) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AAPL.md · JSON record: /company/AAPL.json · verified financials: /company/AAPL/financials.json / /company/AAPL/financials.csv · machine TOC for the whole site: /llms.txt