aapl-20250329

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 March 29, 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
0.875% 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 ☒

14,935,826,000 shares of common stock were issued and outstanding as of April 18, 2025.

Apple Inc.

Form 10-Q

For the Fiscal Quarter Ended March 29, 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	12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4.	Controls and Procedures	18
Part II
Item 1.	Legal Proceedings	19
Item 1A.	Risk Factors	20
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosures	22
Item 5.	Other Information	22
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				Six Months Ended
	March 29, 2025		March 30, 2024		March 29, 2025		March 30, 2024
Net sales:
Products	$	68,714	$	66,886	$	166,674	$	163,344
Services	26,645		23,867		52,985		46,984
Total net sales	95,359		90,753		219,659		210,328

Cost of sales:
Products	44,030		42,424		103,477		100,864
Services	6,462		6,058		13,040		12,338
Total cost of sales	50,492		48,482		116,517		113,202
Gross margin	44,867		42,271		103,142		97,126

Operating expenses:
Research and development	8,550		7,903		16,818		15,599
Selling, general and administrative	6,728		6,468		13,903		13,254
Total operating expenses	15,278		14,371		30,721		28,853

Operating income	29,589		27,900		72,421		68,273
Other income/(expense), net	(279)		158		(527)		108
Income before provision for income taxes	29,310		28,058		71,894		68,381
Provision for income taxes	4,530		4,422		10,784		10,829
Net income	$	24,780	$	23,636	$	61,110	$	57,552

Earnings per share:
Basic	$	1.65	$	1.53	$	4.06	$	3.72
Diluted	$	1.65	$	1.53	$	4.05	$	3.71

Shares used in computing earnings per share:
Basic	14,994,082		15,405,856		15,037,903		15,457,810
Diluted	15,056,133		15,464,709		15,103,499		15,520,675

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q2 2025 Form 10-Q | 1

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In millions)


	Three Months Ended				Six Months Ended
	March 29, 2025		March 30, 2024		March 29, 2025		March 30, 2024
Net income	$	24,780	$	23,636	$	61,110	$	57,552
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax	90		(322)		(535)		(14)

Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivative instruments	(318)		456		1,333		(75)
Adjustment for net (gains)/losses realized and included in net income	(628)		232		156		(591)
Total change in unrealized gains/losses on derivative instruments	(946)		688		1,489		(666)

Change in unrealized gains/losses on marketable debt securities, net of tax:
Change in fair value of marketable debt securities	1,097		(7)		(550)		3,038
Adjustment for net (gains)/losses realized and included in net income	185		59		405		134
Total change in unrealized gains/losses on marketable debt securities	1,282		52		(145)		3,172

Total other comprehensive income	426		418		809		2,492
Total comprehensive income	$	25,206	$	24,054	$	61,919	$	60,044

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q2 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)


	March 29, 2025		September 28, 2024
ASSETS:
Current assets:
Cash and cash equivalents	$	28,162	$	29,943
Marketable securities	20,336		35,228
Accounts receivable, net	26,136		33,410
Vendor non-trade receivables	23,662		32,833
Inventories	6,269		7,286
Other current assets	14,109		14,287
Total current assets	118,674		152,987

Non-current assets:
Marketable securities	84,424		91,479
Property, plant and equipment, net	46,876		45,680
Other non-current assets	81,259		74,834
Total non-current assets	212,559		211,993
Total assets	$	331,233	$	364,980

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	54,126	$	68,960
Other current liabilities	61,849		78,304
Deferred revenue	8,976		8,249
Commercial paper	5,982		9,967
Term debt	13,638		10,912
Total current liabilities	144,571		176,392

Non-current liabilities:
Term debt	78,566		85,750
Other non-current liabilities	41,300		45,888
Total non-current liabilities	119,866		131,638
Total liabilities	264,437		308,030

Commitments and contingencies

Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 14,939,315 and 15,116,786 shares issued and outstanding, respectively	88,711		83,276
Accumulated deficit	(15,552)		(19,154)
Accumulated other comprehensive loss	(6,363)		(7,172)
Total shareholders’ equity	66,796		56,950
Total liabilities and shareholders’ equity	$	331,233	$	364,980

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q2 2025 Form 10-Q | 3

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

(In millions, except per-share amounts)


	Three Months Ended				Six Months Ended
	March 29, 2025		March 30, 2024		March 29, 2025		March 30, 2024
Total shareholders’ equity, beginning balances	$	66,758	$	74,100	$	56,950	$	62,146

Common stock and additional paid-in capital:
Beginning balances	84,768		75,236		83,276		73,812
Common stock issued	825		752		825		752
Common stock withheld related to net share settlement of equity awards	(206)		(222)		(2,097)		(1,882)
Share-based compensation	3,324		3,049		6,707		6,133
Ending balances	88,711		78,815		88,711		78,815

Retained earnings/(Accumulated deficit):
Beginning balances	(11,221)		8,242		(19,154)		(214)
Net income	24,780		23,636		61,110		57,552
Dividends and dividend equivalents declared	(3,794)		(3,746)		(7,613)		(7,520)
Common stock withheld related to net share settlement of equity awards	(85)		(71)		(1,187)		(1,089)
Common stock repurchased	(25,232)		(23,722)		(48,708)		(44,390)
Ending balances	(15,552)		4,339		(15,552)		4,339

Accumulated other comprehensive loss:
Beginning balances	(6,789)		(9,378)		(7,172)		(11,452)
Other comprehensive income	426		418		809		2,492
Ending balances	(6,363)		(8,960)		(6,363)		(8,960)

Total shareholders’ equity, ending balances	$	66,796	$	74,194	$	66,796	$	74,194

Dividends and dividend equivalents declared per share or RSU	$	0.25	$	0.24	$	0.50	$	0.48

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q2 2025 Form 10-Q | 4

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)


	Six Months Ended
	March 29, 2025		March 30, 2024
Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances	$	29,943	$	30,737

Operating activities:
Net income	61,110		57,552
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization	5,741		5,684
Share-based compensation expense	6,512		5,961

Other	(2,217)		(1,971)
Changes in operating assets and liabilities:
Accounts receivable, net	7,266		7,727
Vendor non-trade receivables	9,171		12,164
Inventories	858		53
Other current and non-current assets	(4,371)		(4,438)
Accounts payable	(14,604)		(16,710)
Other current and non-current liabilities	(15,579)		(3,437)
Cash generated by operating activities	53,887		62,585

Investing activities:
Purchases of marketable securities	(12,442)		(25,042)
Proceeds from maturities of marketable securities	26,587		27,462
Proceeds from sales of marketable securities	5,210		4,314
Payments for acquisition of property, plant and equipment	(6,011)		(4,388)

Other	(635)		(729)
Cash generated by investing activities	12,709		1,617

Financing activities:
Payments for taxes related to net share settlement of equity awards	(3,205)		(2,875)
Payments for dividends and dividend equivalents	(7,614)		(7,535)
Repurchases of common stock	(49,504)		(43,344)

Repayments of term debt	(4,009)		(3,150)
Repayments of commercial paper, net	(3,968)		(3,982)
Other	(77)		(132)
Cash used in financing activities	(68,377)		(61,018)

Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents	(1,781)		3,184
Cash, cash equivalents, and restricted cash and cash equivalents, ending balances	$	28,162	$	33,921

Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	31,683	$	14,531

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q2 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 six-month periods ended March 29, 2025 and March 30, 2024 (in millions):


	Three Months Ended				Six Months Ended
	March 29, 2025		March 30, 2024		March 29, 2025		March 30, 2024
iPhone®	$	46,841	$	45,963	$	115,979	$	115,665
Mac®	7,949		7,451		16,936		15,231
iPad®	6,402		5,559		14,490		12,582
Wearables, Home and Accessories	7,522		7,913		19,269		19,866
Services	26,645		23,867		52,985		46,984
Total net sales	$	95,359	$	90,753	$	219,659	$	210,328

Portion of total net sales that was included in deferred revenue as of the beginning of the period	$	3,672	$	3,282	$	5,440	$	5,135

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 six-month periods ended March 29, 2025 and March 30, 2024, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of March 29, 2025 and September 28, 2024, the Company had total deferred revenue of $13.6 billion and $12.8 billion, respectively. As of March 29, 2025, the Company expects 66% of total deferred revenue to be realized in less than a year, 24% within one-to-two years, 9% within two-to-three years and 1% in greater than three years.

Apple Inc. | Q2 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 six-month periods ended March 29, 2025 and March 30, 2024 (net income in millions and shares in thousands):


	Three Months Ended				Six Months Ended
	March 29, 2025		March 30, 2024		March 29, 2025		March 30, 2024
Numerator:
Net income	$	24,780	$	23,636	$	61,110	$	57,552

Denominator:
Weighted-average basic shares outstanding	14,994,082		15,405,856		15,037,903		15,457,810
Effect of dilutive share-based awards	62,051		58,853		65,596		62,865
Weighted-average diluted shares	15,056,133		15,464,709		15,103,499		15,520,675

Basic earnings per share	$	1.65	$	1.53	$	4.06	$	3.72
Diluted earnings per share	$	1.65	$	1.53	$	4.05	$	3.71

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 March 29, 2025 and September 28, 2024 (in millions):


	March 29, 2025
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	25,061	$	—	$	—	$	25,061	$	25,061	$	—	$	—
Level 1:
Money market funds	1,132		—		—		1,132		1,132		—		—
Mutual funds	612		81		(11)		682		—		682		—
Subtotal	1,744		81		(11)		1,814		1,132		682		—
Level 2 (1):
U.S. Treasury securities	14,509		24		(445)		14,088		124		4,088		9,876
U.S. agency securities	4,889		—		(233)		4,656		66		2,004		2,586
Non-U.S. government securities	6,351		29		(625)		5,755		—		529		5,226
Certificates of deposit and time deposits	1,744		—		—		1,744		1,731		—		13
Commercial paper	2		—		—		2		—		2		—
Corporate debt securities	55,743		121		(1,672)		54,192		48		12,412		41,732
Municipal securities	303		—		(5)		298		—		170		128
Mortgage- and asset-backed securities	26,742		121		(1,551)		25,312		—		449		24,863
Subtotal	110,283		295		(4,531)		106,047		1,969		19,654		84,424
Total	$	137,088	$	376	$	(4,542)	$	132,922	$	28,162	$	20,336	$	84,424

Apple Inc. | Q2 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 March 29, 2025, 83% of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 13% between 5 and 10 years, and 4% greater than 10 years. As of March 29, 2025, 13% of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 10% 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 March 29, 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. | Q2 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 March 29, 2025 and September 28, 2024 were as follows (in millions):


	March 29, 2025		September 28, 2024
Derivative instruments designated as accounting hedges:
Foreign exchange contracts	$	68,533	$	64,069
Interest rate contracts	$	14,575	$	14,575

Derivative instruments not designated as accounting hedges:
Foreign exchange contracts	$	68,388	$	91,493

As of March 29, 2025 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $13.4 billion and $13.5 billion, respectively.

Accounts Receivable

Trade Receivables

The Company’s third-party cellular network carriers accounted for 37% and 38% of total trade receivables as of March 29, 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 March 29, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 49% and 19%. 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 March 29, 2025 and September 28, 2024 (in millions):

Inventories


	March 29, 2025		September 28, 2024
Components	$	2,673	$	3,627
Finished goods	3,596		3,659
Total inventories	$	6,269	$	7,286

Property, Plant and Equipment, Net


	March 29, 2025		September 28, 2024
Gross property, plant and equipment	$	121,179	$	119,128
Accumulated depreciation	(74,303)		(73,448)
Total property, plant and equipment, net	$	46,876	$	45,680

Apple Inc. | Q2 2025 Form 10-Q | 9

Note 6 – Debt

Commercial Paper

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. As of March 29, 2025 and September 28, 2024, the Company had $6.0 billion and $10.0 billion of commercial paper outstanding, respectively.

Term Debt

As of March 29, 2025 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $92.2 billion and $96.7 billion, respectively (collectively the “Notes”). As of March 29, 2025 and September 28, 2024, the fair value of the Company’s Notes, based on Level 2 inputs, was $80.9 billion and $88.4 billion, respectively.

Note 7 – Shareholders’ Equity

Share Repurchase Program

SEC Form 10-Q filed by Apple Inc.