[Part I - Financial Information](index=4&type=section&id=Part%20I) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Apple's unaudited consolidated financial statements for Q3 and nine months 2025, highlighting growth in sales and net income [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details Q3 and nine-month 2025 sales and net income, showing significant year-over-year growth Q3 & Nine Months Ended June 28, 2025 - Statement of Operations (YoY) | Metric | Q3 2025 (in millions) | Q3 2024 (in millions) | YoY Change | Nine Months 2025 (in millions) | Nine Months 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Net Sales** | **$94,036** | **$85,777** | **+9.6%** | **$313,695** | **$296,105** | **+5.9%** | | Products Net Sales | $66,613 | $61,564 | +8.2% | $233,287 | $224,908 | +3.7% | | Services Net Sales | $27,423 | $24,213 | +13.3% | $80,408 | $71,197 | +12.9% | | **Gross Margin** | **$43,718** | **$39,678** | **+10.2%** | **$146,860** | **$136,804** | **+7.4%** | | **Operating Income** | **$28,202** | **$25,352** | **+11.2%** | **$100,623** | **$93,625** | **+7.5%** | | **Net Income** | **$23,434** | **$21,448** | **+9.3%** | **$84,544** | **$79,000** | **+7.0%** | | **Diluted EPS** | **$1.57** | **$1.40** | **+12.1%** | **$5.62** | **$5.11** | **+10.0%** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents Apple's balance sheet as of June 28, 2025, showing changes in assets, liabilities, and equity Balance Sheet Highlights (as of June 28, 2025 vs. Sep 28, 2024) | Metric | June 28, 2025 (in millions) | September 28, 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $36,269 | $29,943 | +$6,326 | | Total current assets | $122,491 | $152,987 | -$30,496 | | **Total Assets** | **$331,495** | **$364,980** | **-$33,485** | | Total current liabilities | $141,120 | $176,392 | -$35,272 | | **Total Liabilities** | **$265,665** | **$308,030** | **-$42,365** | | **Total Shareholders' Equity** | **$65,830** | **$56,950** | **+$8,880** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows for the nine months ended June 28, 2025, detailing operating, investing, and financing activities Cash Flow Summary (Nine Months Ended) | Activity | June 28, 2025 (in millions) | June 29, 2024 (in millions) | | :--- | :--- | :--- | | Cash generated by operating activities | $81,754 | $91,443 | | Cash generated by investing activities | $17,782 | $1,490 | | Cash used in financing activities | ($93,210) | ($97,035) | | **Increase/(Decrease) in cash** | **$6,326** | **($4,102)** | - Major uses of cash in financing activities for the nine months ended June 28, 2025 included **$70.6 billion** for common stock repurchases and **$11.6 billion** for dividend payments[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures supporting financial statements, including revenue disaggregation, financial instruments, and segment performance Disaggregated Net Sales (Nine Months Ended, YoY) | Category | Net Sales 2025 (in millions) | Net Sales 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | iPhone | $160,561 | $154,961 | +3.6% | | Mac | $24,982 | $22,240 | +12.3% | | iPad | $21,071 | $19,744 | +6.7% | | Wearables, Home and Accessories | $26,673 | $27,963 | -4.6% | | Services | $80,408 | $71,197 | +12.9% | | **Total Net Sales** | **$313,695** | **$296,105** | **+5.9%** | - During the nine months ended June 28, 2025, the Company repurchased **312 million** shares of its common stock for **$69.3 billion**[53](index=53&type=chunk) Geographic Segment Net Sales (Nine Months Ended, YoY) | Region | Net Sales 2025 (in millions) | Net Sales 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Americas | $134,161 | $125,381 | +7.0% | | Europe | $82,329 | $76,404 | +7.8% | | Greater China | $49,884 | $51,919 | -3.9% | | Japan | $22,067 | $19,126 | +15.4% | | Rest of Asia Pacific | $25,254 | $23,275 | +8.5% | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and nine-month 2025 financial results, highlighting sales growth, gross margin, operating expenses, and capital return - The company warns that macroeconomic conditions (inflation, interest rates), tariffs, and other international trade disputes could materially impact business, results, and financial condition[65](index=65&type=chunk)[67](index=67&type=chunk) - During Q3 2025, the company announced new versions of its operating systems: iOS 26, macOS Tahoe 26, iPadOS 26, watchOS 26, visionOS 26, and tvOS 26[65](index=65&type=chunk) [Segment Operating Performance](index=17&type=section&id=Segment%20Operating%20Performance) Analyzes net sales growth across geographic segments for Q3 and nine months 2025, noting regional variations and key product drivers Net Sales by Geographic Segment (YoY Change) | Region | Q3 2025 Change | Nine Months 2025 Change | | :--- | :--- | :--- | | Americas | +9% | +7% | | Europe | +10% | +8% | | Greater China | +4% | -4% | | Japan | +13% | +15% | | Rest of Asia Pacific | +20% | +9% | - Growth drivers by region: - **Americas & Europe:** Higher net sales of iPhone and Services[69](index=69&type=chunk)[70](index=70&type=chunk) - **Greater China:** Q3 growth from iPhone and Mac; nine-month decline due to lower iPhone sales[71](index=71&type=chunk) - **Japan & Rest of Asia Pacific:** Higher net sales of iPhone and Services[72](index=72&type=chunk)[73](index=73&type=chunk) [Products and Services Performance](index=18&type=section&id=Products%20and%20Services%20Performance) Reviews net sales performance for products and services in Q3 and nine months 2025, highlighting growth drivers and declining categories Net Sales by Category (YoY Change) | Category | Q3 2025 Change | Nine Months 2025 Change | | :--- | :--- | :--- | | iPhone | +13% | +4% | | Mac | +15% | +12% | | iPad | -8% | +7% | | Wearables, Home and Accessories | -9% | -5% | | Services | +13% | +13% | - Key performance drivers: - **iPhone:** Growth driven by higher net sales of Pro models[75](index=75&type=chunk) - **Mac:** Growth from both laptops and desktops[76](index=76&type=chunk) - **iPad:** Q3 decline due to lower iPad Pro sales, but nine-month growth driven by iPad Air[77](index=77&type=chunk) - **Services:** Growth driven by advertising, the App Store, and cloud services[78](index=78&type=chunk) [Gross Margin](index=19&type=section&id=Gross%20Margin) Examines gross margin performance for Q3 and nine months 2025, noting improvements in Services and declines in Products Gross Margin Percentage (YoY Comparison) | Category | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Products | 34.5% | 35.3% | 36.9% | 37.5% | | Services | 75.6% | 74.0% | 75.5% | 73.8% | | **Total** | **46.5%** | **46.3%** | **46.8%** | **46.2%** | - The decrease in Products gross margin percentage in Q3 was primarily due to tariffs and a different product mix[81](index=81&type=chunk) - The increase in Services gross margin percentage in Q3 was primarily due to a different mix of services[82](index=82&type=chunk) [Operating Expenses](index=20&type=section&id=Operating%20Expenses) Details the increase in total operating expenses for Q3 2025, driven by higher R&D and SG&A costs Operating Expenses (Q3 YoY) | Expense Category | Q3 2025 (in millions) | Q3 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Research and development | $8,866 | $8,006 | +10.7% | | Selling, general and administrative | $6,650 | $6,320 | +5.2% | | **Total operating expenses** | **$15,516** | **$14,326** | **+8.3%** | - Growth in both R&D and SG&A expenses was primarily driven by increases in headcount-related expenses[86](index=86&type=chunk)[87](index=87&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's liquidity and capital resources, including cash position, purchase obligations, and capital return program - The company believes its current liquidity is sufficient to satisfy cash requirements and its capital return program for the next 12 months and beyond[91](index=91&type=chunk) - In Q3 2025, Apple repurchased **$21.0 billion** of its common stock and paid **$3.9 billion** in dividends and dividend equivalents[95](index=95&type=chunk) - The quarterly cash dividend was set at **$0.26 per share**, with an intention to increase it annually[94](index=94&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Reports no material changes to the company's market risk during the first nine months of fiscal 2025 - There have been no material changes to the Company's market risk during the first nine months of 2025[100](index=100&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 28, 2025, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of June 28, 2025[101](index=101&type=chunk) - There were no changes in internal control over financial reporting during the third quarter of 2025 that materially affected, or are reasonably likely to materially affect, the Company's internal controls[102](index=102&type=chunk) [Part II - Other Information](index=23&type=section&id=Part%20II) [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) Details significant legal proceedings, including European Commission investigations, a U.S. DOJ antitrust lawsuit, and the Epic Games case - The European Commission opened two formal investigations under the Digital Markets Act (DMA). It fined Apple **€500 million** in one investigation, a decision Apple has appealed[104](index=104&type=chunk) - The U.S. Department of Justice (DOJ) filed a civil antitrust lawsuit against Apple on March 21, 2024, alleging monopolization in the smartphone market[105](index=105&type=chunk) - In the Epic Games lawsuit, a California District Court found Apple in violation of a 2021 injunction and referred the company for a determination on whether criminal contempt proceedings are appropriate. Apple is appealing the decision[106](index=106&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to the company's risk factors since the 2024 Form 10-K, with prior disclosures incorporated - There have been no material changes to the Company's risk factors since the 2024 Form 10-K, other than those previously disclosed in the Q1 and Q2 2025 10-Q filings[108](index=108&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's share repurchase activity for Q3 2025, including the total shares repurchased and new authorization Share Repurchase Activity (Q3 2025) | Period | Total Shares Purchased (in thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | Mar 30 - May 3, 2025 | 43,161 | $200.79 | | May 4 - May 31, 2025 | 28,223 | $203.17 | | Jun 1 - Jun 28, 2025 | 32,880 | $200.73 | | **Total** | **104,264** | **N/A** | - On May 1, 2025, the Company announced an additional program to repurchase up to **$100 billion** of its common stock[112](index=112&type=chunk) [Defaults Upon Senior Securities](index=24&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Reports no defaults upon senior securities - None[109](index=109&type=chunk) [Mine Safety Disclosures](index=24&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[110](index=110&type=chunk) [Other Information](index=24&type=section&id=Item%205.%20Other%20Information) Reports no insider trading arrangements - Insider Trading Arrangements: None[111](index=111&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - Lists exhibits filed with the report, including CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1) and Inline XBRL data (Exhibits 101, 104)[114](index=114&type=chunk)

Core Insights - Apple reported a quarterly profit of $23.4 billion and revenue of $94 billion for the quarter ending in June, exceeding forecasts despite tariff concerns [1][2] - iPhone sales generated $44.6 billion in revenue, up from $39.3 billion year-over-year, indicating strong performance [2][9] - Apple faced $800 million in tariff costs in the last quarter and anticipates $1.1 billion in the current quarter due to ongoing trade tensions [4][7] Financial Performance - The company achieved a revenue record for the June quarter with double-digit growth across iPhone, Mac, and Services [2] - Revenue from Apple's services segment reached $27.4 billion, showcasing significant growth [9] Market Position - Global smartphone shipments decreased slightly to 288.9 million units, with Apple shipping 44.8 million iPhones, a 2% decline [3] - Apple maintained its position as the second-largest smartphone vendor, following Samsung [3] Tariff Impact - The Trump tariffs have increased Apple's costs, with Cook stating that the company is adjusting its supply chain to mitigate these impacts [4][8] - Most iPhones sold in the U.S. are now sourced from India as part of Apple's strategy to navigate trade challenges [7] Strategic Initiatives - Apple is committed to a $500 billion investment in the U.S. over the next four years to bolster its operations [8] - The company's pivot to manufacturing in India demonstrates its supply chain flexibility and ability to adapt to changing market conditions [10]

Meta Platforms and Broadcom are at the center of the artificial intelligence revolution, and that could help both companies surpass Apple's current market value within five years. Apple is currently the third largest public company, with a market value of $3.1 trillion. I expect two artificial intelligence stocks to surpass that figure within five years. I am not talking about Nvidia, which is already worth $4.3 trillion, but rather Meta Platforms (META 11.22%) and Broadcom (AVGO -3.06%). Here's what my pre ...

Group 1 - The core point of the article is that Apple reported a strong Q3 FY2025 financial performance, with total revenue reaching $98 billion, a 10% year-over-year increase, marking the largest quarterly revenue growth since Q1 FY2022 [1][3] - The Mac and iPad segments performed well, with Mac revenue increasing by 20% to $8.5 billion, driven by the popularity of the new MacBook Air with M4 chip, and iPad revenue rising by 18% to $7 billion, with a 30% surge in education market purchases [3] - The Greater China region, Apple's third-largest market, generated $17 billion in revenue, a 7% year-over-year increase, ending a streak of four consecutive quarters of decline [3] Group 2 - Apple CEO Tim Cook outlined the company's AI strategy, indicating a significant increase in capital expenditure and R&D investment in generative AI and machine learning, focusing on enhancing personalized experiences while protecting user privacy [3] - Cook emphasized that AI is deeply integrated into every new product, from Siri optimization to photo editing and health monitoring, redefining device interaction through edge AI [3] - Analysts noted Cook's openness to acquisitions in the AI space, suggesting that Apple may pursue technology-driven acquisitions to enhance its AI capabilities and catch up with competitors like Microsoft and Google [3][4] Group 3 - Some analysts raised concerns about the pace of Apple's AI strategy implementation, with Morgan Stanley pointing out the lack of details on self-developed large models and the reliance on third-party models for AI functionalities [4] - Goldman Sachs raised Apple's target price to $240, believing that the combination of edge AI and privacy protection will attract high-end users and further improve service business margins [4]

Core Insights - Apple Inc. reported a revenue of $94.036 billion for Q3 of FY2025, marking a year-over-year increase of approximately 9.63% [1] - The net profit for the same period was $23.434 billion, reflecting a year-over-year growth of about 9.26% [1] Revenue Breakdown - iPhone sales increased from $39.296 billion in the previous fiscal year to $44.582 billion, showing a growth of over 13% [1] - Service revenue rose from $24.213 billion to $27.423 billion, also exceeding a 13% increase [1] - Computer sales grew from $7.009 billion to $8.046 billion [1] - Sales of wearables, home, and accessories decreased from $8.097 billion to $7.404 billion [1] Market Performance - Revenue growth was observed across major markets, including Greater China, the Americas, Japan, and other Asia-Pacific regions [1] - Specifically, revenue in Greater China increased from $14.728 billion to $15.369 billion year-over-year [1] Challenges - CEO Tim Cook indicated that the company faced an $800 million loss in Q3 due to U.S. tariff measures, with an expected loss of $1.1 billion in Q4 attributed to tariffs [1] - Apple is also facing competitive pressures from rivals such as Samsung and Google [1] - Additionally, the company is encountering regulatory pressures from the European Union regarding its business operations [1]

Core Insights - Apple reported a total revenue of $98 billion for Q3 of FY2025, marking a 10% year-over-year increase, the largest quarterly revenue growth since Q1 of FY2022 [1] - The strong performance exceeded Wall Street expectations, leading to a more than 3% increase in stock price and a market capitalization surpassing $3.5 trillion [1] Revenue Drivers - iPhone revenue grew by 5% to $47 billion, driven by strong demand for the high-end iPhone 16 Pro series, particularly in emerging markets like India and Southeast Asia, where sales doubled [1] - The company successfully mitigated the impact of extended consumer upgrade cycles through trade-in subsidies and carrier contract incentives [1] - Service revenue surged by 14% to $24 billion, reaching a new historical high, with Apple Music and iCloud+ surpassing 1 billion subscribers and App Store in-app purchase revenue increasing by 12% [1] - AI-driven personalized recommendation features improved service segment user retention rates to 85% [1] Performance of Other Segments - Mac revenue increased by 20% to $8.5 billion, attributed to the strong sales of the new MacBook Air featuring the M4 chip [2] - iPad revenue rose by 18% to $7 billion, with a notable 30% year-over-year increase in purchases from the education sector [2] - Revenue from Greater China reached $17 billion, reflecting a 7% year-over-year growth, ending a streak of four consecutive quarters of decline [2]

Financial Performance - Apple reported record Q3 revenue of $94 billion, up 9.6% from $85.8 billion a year ago, and EPS of $1.57, exceeding analyst expectations of $1.43 per share [13] - Net income for the quarter was $23.4 billion, compared to $21.4 billion in the same period last year [13] - iPhone revenues rose by 13% to $44.6 billion, driven by upgrades to iPhone 16, with significant growth in Europe, Greater China, and Asia-Pacific [14] - Mac revenues increased by 15% to $8 billion, while iPad sales fell by 8% to $6.6 billion [14] - Services revenue grew by 13% to $27.4 billion, while the wearables, home, and accessories category, including Apple Watch, declined by 9% to $7.4 billion [14] Tariff Impact - Apple incurred $800 million in tariff-related expenses in Q3 and anticipates $1.1 billion in Q4, primarily due to IEEPA-related sanctions and Section 232 coverage [7][8] - The increase in tariff costs is attributed to higher sales volumes rather than changes in tariff policy [8] - The majority of Apple's products sold in the U.S. are manufactured in India and Vietnam, while China remains the primary source for products sold outside the U.S. [9] AI Investments and Strategy - Apple is significantly increasing its investments in artificial intelligence (AI), reallocating staff to enhance AI capabilities, particularly in Siri, with new features expected by 2026 [2][4] - The company is open to mergers and acquisitions to accelerate its AI roadmap, having acquired seven companies this year, mostly smaller firms [5][6] - Apple has earmarked $500 billion for investments in the U.S. over four years, including opening semiconductor manufacturing plants [6] Future Outlook - CEO Tim Cook expressed confidence that the iPhone will continue to be relevant in the AI era, complementing other devices rather than being replaced [10] - Apple is preparing to ship Vision OS 26 for the Apple Vision Pro AR headset and is reportedly planning to develop smart glasses [12]

While Apple was never going to announce major acquisitions or initiatives on an earnings call, CEO Tim Cook's remarks on Thursday confirm that the company is going to invest more heavily in the technology. Cook said Apple is going to "significantly" grow the company's investments in AI. He added that Apple was always looking to buy companies of any size that could help it develop its AI offerings. Tim Cook arrives for the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Reso ...

Those cost projections, which are based on current rates and policies, could end up lower than expected as they did in the previous quarter. Apple incurred about $800 million of tariff-related costs for the June quarter, less than the $900 million estimate the company shared in May. Cook said most of the tariffs levied against Apple stem from the International Emergency Economic Powers Act (IEEPA). Earlier this year, and amid a brewing trade war, the U.S. government and China agreed to a 30% tariff on impor ...

Market Overview - Markets closed July on a weak note, with the Dow down 330 points (-0.74%), S&P 500 down 23 points (-0.37%), Nasdaq down 7 points (-0.03%), and Russell 2000 down 20 points (-0.93%) [1] - The trade outlook remains fragile, and recent economic reports indicate a warming economy, but markets may not continue to set record highs [2] Earnings Reports - Apple (AAPL) reported fiscal Q3 earnings of $1.57 per share, exceeding the $1.42 consensus, with revenues of $94.0 billion surpassing projections of $88.9 billion, leading to a 3% increase in shares [4] - Apple's Services segment achieved a record-high revenue of $27.4 billion for Q3, accounting for nearly 30% of total revenues, despite a year-to-date decline of 17% in share price [5] - Amazon (AMZN) posted Q2 earnings of $1.68 per share, beating the expected $1.33, with revenues of $167.7 billion exceeding the $162.3 billion estimate; however, shares fell over 2% in after-market trading due to lower-than-expected operating income guidance [6] - Roku (ROKU) reported Q2 earnings of $0.07, surpassing the consensus of -$0.16, with revenues of $1.11 billion exceeding the $1.07 billion forecast; its platform segment grew 18% and is expected to generate $4.075 billion for the full year [7] - Reddit (RDDT) shares rose 14% after reporting earnings of $0.48 per share, significantly above the estimated $0.20, with revenues of $499 million, a 78% year-over-year increase, surpassing the forecast of $427.4 million [8]