Form type: 10-Q
Period end: 2026-06-27
| Three Months Ended June 27, 2026 | Three Months Ended June 28, 2025 | Nine Months Ended June 27, 2026 | Nine Months Ended June 28, 2025 | |
|---|---|---|---|---|
| Revenue | 109,417,000,000 | 94,036,000,000 | ||
| Total Revenue | ||||
| Cost of revenue | 54,647,000,000 | 50,318,000,000 | ||
| Total COGS | ||||
| Gross Profit | ||||
| General and administrative | 2,312,000,000 | 1,881,000,000 | ||
| Income tax expense (benefit) | 6,478,000,000 | 4,597,000,000 | ||
| Other income (expense), net | -572,000,000 | 171,000,000 | ||
| Research and development | 11,729,000,000 | 8,866,000,000 | ||
| Selling and marketing | 5,034,000,000 | 4,769,000,000 | ||
| Total Expenses | ||||
| Net Income | ||||
| Basic earnings per share |
| June 27, 2026 | September 27, 2025 | |
|---|---|---|
| Assets | ||
| Accounts receivable | 31,398,000,000 | 39,777,000,000 |
| Cash and cash equivalents | 39,544,000,000 | 35,934,000,000 |
| Deferred tax assets | 0 | 20,777,000,000 |
| Goodwill and intangibles | 25,417,000,000 | 13,301,000,000 |
| Inventory | 11,092,000,000 | 0 |
| Long-term investments | 84,118,000,000 | 77,723,000,000 |
| Operating lease right-of-use assets | 0 | 11,205,000,000 |
| Other assets (derived) | 22,434,000,000 | 4,708,000,000 |
| Other current assets | 17,420,000,000 | 14,585,000,000 |
| Other noncurrent assets | 77,557,000,000 | 72,634,000,000 |
| Property, plant and equipment | 51,431,000,000 | 49,834,000,000 |
| Short-term investments | 22,855,000,000 | 18,763,000,000 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable | 64,525,000,000 | 69,860,000,000 |
| Debt | 82,300,000,000 | 90,700,000,000 |
| Deferred revenue | 9,538,000,000 | 9,055,000,000 |
| Finance lease liabilities, current | 0 | 538,000,000 |
| Finance lease liabilities, noncurrent | 0 | 692,000,000 |
| Operating lease liabilities, current | 0 | 1,579,000,000 |
| Operating lease liabilities, noncurrent | 0 | 10,911,000,000 |
| Other accrued liabilities | 0 | 44,452,000,000 |
| Other current liabilities | 62,259,000,000 | 0 |
| Other liabilities (derived) | 2,044,000,000 | 3,156,000,000 |
| Other noncurrent liabilities | 55,080,000,000 | 41,549,000,000 |
| Taxes payable | 0 | 13,016,000,000 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 107,520,000,000 | 73,733,000,000 |
| Total Equity | ||
| Nine Months Ended June 27, 2026 | Nine Months Ended June 28, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | 101,464,000,000 | 84,544,000,000 |
| Depreciation and amortization | 9,973,000,000 | 8,571,000,000 |
| Stock-based compensation | 10,523,000,000 | 9,680,000,000 |
| Changes in operating assets and liabilities, net | -4,964,000,000 | -21,041,000,000 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | -18,811,000,000 | 17,782,000,000 |
| Net cash from investing activities | - | |
| Financing activities | ||
| Financing activities, net | -94,575,000,000 | -93,210,000,000 |
| Net cash from financing activities | - | - |
| Net change in cash | ||
| Cash at beginning of period | 29,943,000,000 | |
| Cash at end of period | 36,269,000,000 | |
| Nine Months Ended June 27, 2026 | Nine Months Ended June 28, 2025 | |
|---|---|---|
| Balance at beginning of period | 73,733,000,000 | 56,950,000,000 |
| Net income | 101,464,000,000 | 84,544,000,000 |
| Other equity movements | -67,677,000,000 | -75,664,000,000 |
| Balance at end of period | 107,520,000,000 | 65,830,000,000 |
Apple Inc. is a public reporting company classified under Electronic Computers. The accompanying condensed financial statements are unaudited, have been prepared from the Company's books and records, and, in the opinion of management, reflect all adjustments necessary for a fair statement of the interim periods presented; the results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. The condensed financial statements are presented as of and for the period ended June 27, 2026.
Revenue for the period was $109,417 million, an increase of 16.4% from $94,036 million in the prior period. Cost of revenue was $54,647 million, compared with $50,318 million in the prior period, an increase of 8.6%. Deferred revenue was $9,538 million at period end, compared with $8,979 million in the prior period. Net income for the period was $29,789 million. Basic earnings per share was $2.03, computed using weighted-average basic shares outstanding of 14,656,110,000. [COMPLETE: diluted earnings per share and weighted-average diluted shares outstanding]
Debt outstanding was $82,300 million at period end, compared with $91,800 million in the prior period, a decrease of 10.3%. Finance lease liabilities, current and noncurrent, and operating lease liabilities, current and noncurrent, were each $0 at period end. Total liabilities were $275,746 million at period end. [COMPLETE: debt maturity schedule, interest rates, and terms of borrowings]
Total stockholders' equity was $107,520 million at period end, an increase of 63.3% from $65,830 million in the prior period. [COMPLETE: description of equity activity during the period, including dividends declared, share repurchases, and share-based compensation]
| Current | Prior | |
|---|---|---|
| Debt | 82,300,000,000 | 90,700,000,000 |
| Finance lease liabilities, current | 0 | 538,000,000 |
| Finance lease liabilities, noncurrent | 0 | 692,000,000 |
| Operating lease liabilities, current | 0 | 1,579,000,000 |
| Operating lease liabilities, noncurrent | 0 | 10,911,000,000 |
| Total debt | 82,300,000,000 | 104,420,000,000 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | 51,431,000,000 | 49,834,000,000 |
| Total property and equipment | 51,431,000,000 | 49,834,000,000 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 107,520,000,000 | 73,733,000,000 |
| Total stockholders' equity | 107,520,000,000 | 73,733,000,000 |
Total revenue for the period was $109,417,000,000, an increase of 16.4% from $94,036,000,000 in the comparable prior-year period, driven primarily by [COMPLETE: description of principal products and services contributing to revenue growth]. Cost of revenue increased 8.6% to $54,647,000,000 from $50,318,000,000 in the prior-year period, and because revenue grew at a faster rate than cost of revenue, gross margin expanded relative to the prior-year period. Research and development expense increased 32.3% to $11,729,000,000 from $8,866,000,000, reflecting [COMPLETE: drivers of research and development growth, such as headcount and program investment]. Selling and marketing expense increased 5.6% to $5,034,000,000 from $4,769,000,000, and general and administrative expense increased 22.9% to $2,312,000,000 from $1,881,000,000. Other income, net was $572,000,000 for the period, compared with other expense, net of $171,000,000 in the prior-year period. Income tax expense increased 40.9% to $6,478,000,000 from $4,597,000,000, primarily attributable to [COMPLETE: drivers of the change in the effective tax rate]. Net income for the period was $29,789,000,000, and basic earnings per share was $2.03 on weighted-average basic shares outstanding of 14,656,110,000.
Our balance sheet reflected accounts receivable of $31,398,000,000, up 13.9% from $27,557,000,000, and inventory of $11,092,000,000, up 87.2% from $5,925,000,000, with the inventory increase attributable to [COMPLETE: drivers of inventory build]. Goodwill and intangibles of $25,417,000,000 were recognized during the period, compared with none in the prior-year period, in connection with [COMPLETE: description of related transaction]. Accounts payable increased 28.1% to $64,525,000,000 from $50,374,000,000, deferred revenue increased 6.2% to $9,538,000,000, and other noncurrent liabilities increased 30.8% to $55,080,000,000 from $42,115,000,000. Stockholders' equity increased 63.3% to $107,520,000,000 from $65,830,000,000.
Our principal sources of liquidity are cash and cash equivalents, which totaled $39,544,000,000 at period end, an increase of 9.0% from $36,269,000,000, together with short-term investments of $22,855,000,000, up 19.6% from $19,103,000,000, and long-term investments of $84,118,000,000, up 8.4% from $77,614,000,000. Total debt decreased 10.3% to $82,300,000,000 from $91,800,000,000, reflecting [COMPLETE: description of repayments, maturities, or refinancing activity]. Property, plant and equipment increased 6.0% to $51,431,000,000 from $48,508,000,000, reflecting continued capital investment. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Management believes that our existing cash, cash equivalents, and investment balances, together with cash expected to be generated from operations, will be sufficient to fund our operating, investing, and financing requirements for at least the next twelve months. We are involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements.
The Company's primary exposure to market risk is interest rate risk associated with its cash, cash equivalents, and short-term investments. As of June 27, 2026, the Company held cash and cash equivalents of $39.5 billion, compared to $36.3 billion as of the end of the prior period, and short-term investments of $22.9 billion, compared to $19.1 billion as of the end of the prior period. The Company also held long-term investments of $84.1 billion as of June 27, 2026, compared to $77.6 billion as of the end of the prior period. Changes in market interest rates affect the interest income the Company earns on these balances as well as the fair value of its investment portfolio. 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 also exposed to interest rate risk in connection with its outstanding indebtedness. As of June 27, 2026, the Company had total debt of $82.3 billion, compared to $91.8 billion as of the end of the prior period. Future interest payments associated with the Company's Notes total $37.0 billion, with $2.6 billion payable within 12 months. The Company also issues unsecured short-term promissory notes pursuant to a commercial paper program, and as of September 27, 2025, the Company had $8.0 billion of commercial paper outstanding, which was payable within 12 months. Because a portion of the Company's borrowings consists of short-term instruments, increases in market interest rates could increase the Company's interest expense on future issuances.
The Company does not have material foreign currency or commodity price exposure. The Company notes, however, that 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. In addition, 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), and 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. The Company continues to monitor its market risk exposures and may adjust its investment and financing activities in response to changing market conditions.
Management, including our certifying officers such as the Principal Financial Officer, is responsible for establishing and maintaining disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized, and reported within the required time periods, and are subject to inherent limitations such that they can provide only reasonable, not absolute, assurance of achieving their objectives.
Management, with the participation of the certifying officers, evaluated the effectiveness of the company's disclosure controls and procedures as of June 27, 2026, the end of the period covered by this report, and concluded that they were effective at the reasonable assurance level. This conclusion is consistent with the evaluation performed by management and the certifying officers for the period ended September 27, 2025, in which disclosure controls and procedures were likewise concluded to be effective at the reasonable assurance level.
There were no changes in our internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. The conclusion language set forth in this section must be reviewed and adopted by management before filing.
The Company is involved in legal proceedings arising in the ordinary course of business from time to time. Management does not currently believe that any pending matter is material to the Company's financial statements.
The outcome of litigation is inherently uncertain, and an adverse result in one or more matters could negatively affect the Company's results of operations and financial condition. The Company will continue to monitor developments in pending matters and will make disclosures as required in future periods.
For the quarterly period ended June 27, 2026, we reported revenue of $109.4 billion and net income of $29.8 billion, and our future results remain subject to significant risks and uncertainties. Our future gross margins can be impacted by a variety of factors, and we believe, in general, gross margins will be subject to volatility and downward pressure. Although Services gross margin increased during 2025 compared to 2024 primarily due to higher Services net sales and a different mix of services, and Services gross margin percentage increased primarily due to a different mix of services, this benefit was partially offset by higher costs, and there can be no assurance that these trends will continue. During the current period, our cost of revenue increased 8.6% to $54.6 billion and our research and development expense increased 32.3% to $11.7 billion, and continued growth in these costs could adversely affect our profitability if not accompanied by corresponding revenue growth.
We utilize several outsourcing partners to manufacture subassemblies for our products and to perform final assembly and testing of finished products, and we also obtain individual components for our products from a wide variety of individual suppliers. This reliance on third parties exposes us to risks of supply disruption, quality issues, and cost increases outside our control. As of September 27, 2025, we had manufacturing purchase obligations of $56.2 billion, with $55.4 billion payable within 12 months, and these substantial fixed commitments could adversely affect our financial condition if demand for our products declines. Our inventory increased 87.2% to $11.1 billion during the current period, which heightens the risk of inventory obsolescence or write-downs if product demand does not meet our expectations.
We carry significant indebtedness and fixed financial obligations that could constrain our financial flexibility. As of June 27, 2026, we had outstanding debt of $82.3 billion, and future interest payments associated with our Notes total $37.0 billion, with $2.6 billion payable within 12 months. We also issue unsecured short-term promissory notes pursuant to a commercial paper program, and as of September 27, 2025, we had $8.0 billion of commercial paper outstanding, which was payable within 12 months. In addition, we have lease arrangements for certain equipment and facilities, including corporate, data center, manufacturing and retail space, and as of September 27, 2025, we had fixed lease payment obligations of $16.8 billion, with $2.6 billion payable within 12 months. Servicing these obligations requires significant cash flows, and adverse changes in our business could impair our ability to meet them on favorable terms.
Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments, and as of June 27, 2026, we held cash and cash equivalents of $39.5 billion, short-term investments of $22.9 billion, and long-term investments of $84.1 billion, the value of and income from which could be adversely affected by changes in interest rates. We are involved in legal proceedings arising in the ordinary course of business from time to time, and although management does not currently believe any pending matter is material to the financial statements, the outcome of litigation is inherently uncertain and an adverse result could harm our business, results of operations, or financial condition.
This Item 5 sets forth the disclosure required by Item 408(a) of Regulation S-K regarding Rule 10b5-1 trading arrangements of the directors and officers of Apple Inc. for the quarterly period ended June 27, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]