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FY26_Q1_Consolidated_Financial_Statements.pdf 3 pages · 84 KB · Static
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THIS IS THE OLD WAY
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
December 27, 2025
Three Months Ended
December 28, 2024
Net sales:
Products$ 113,743$ 97,960
Services30,01326,340
Total net sales143,756124,300
Cost of sales:
Products67,47859,447
Services7,0476,578
Total cost of sales74,52566,025
Gross margin69,23158,275
Operating expenses:
Research and development10,8878,268
Selling, general and administrative7,4927,175
Total operating expenses18,37915,443
Operating income50,85242,832
Other income/(expense), net150(248)
Income before provision for income taxes51,00242,584
Provision for income taxes8,9056,254
Net income$ 42,097$ 36,330
Earnings per share:
Basic$ 2.85$ 2.41
Diluted$ 2.84$ 2.40
Net sales by reportable segment:Dec 27, 2025Dec 28, 2024
Americas$ 58,529$ 52,648
Europe38,14633,861
Greater China25,52618,513
Japan9,4138,987
Rest of Asia Pacific12,14210,291
Total net sales$ 143,756$ 124,300
Net sales by category:Dec 27, 2025Dec 28, 2024
iPhone$ 85,269$ 69,138
Mac8,3868,987
iPad8,5958,088
Wearables, Home and Accessories11,49311,747
Services30,01326,340
Total net sales$ 143,756$ 124,300
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THIS IS THE OLD WAY
Apple Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except number of shares which are reflected in thousands, and par value)
December 27, 2025September 27, 2025
ASSETS:
Current assets:
Cash and cash equivalents$ 45,317$ 35,934
Marketable securities21,59018,763
Accounts receivable, net39,92139,777
Vendor non-trade receivables30,39933,180
Inventories5,8755,718
Other current assets15,00214,585
Total current assets158,104147,957
Non-current assets:
Marketable securities77,88877,723
Property, plant and equipment, net50,15949,834
Other non-current assets93,14683,727
Total non-current assets221,193211,284
Total assets$ 379,297$ 359,241
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable$ 70,587$ 69,860
Other current liabilities68,54366,387
Deferred revenue9,4139,055
Commercial paper1,9977,979
Term debt11,82712,350
Total current liabilities162,367165,631
Term debt76,68578,328
Other non-current liabilities52,05541,549
Total liabilities291,107285,508
Shareholders' equity:
Common stock and additional paid-in capital95,22193,568
Accumulated deficit(2,177)(14,264)
Accumulated other comprehensive loss(4,854)(5,571)
Total shareholders' equity88,19073,733
Total liabilities and shareholders' equity$ 379,297$ 359,241
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THIS IS THE OLD WAY
Apple Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Three Months Ended
Dec 27, 2025
Three Months Ended
Dec 28, 2024
Cash, beginning balances$ 35,934$ 29,943
Operating activities:
Net income42,09736,330
Depreciation and amortization3,2143,080
Share-based compensation expense3,5943,286
Other(528)(2,009)
Accounts receivable, net(153)3,597
Vendor non-trade receivables2,7813,166
Inventories(211)215
Other current and non-current assets(10,250)939
Accounts payable848(6,671)
Other current and non-current liabilities12,533(11,998)
Cash generated by operating activities53,92529,935
Investing activities:
Purchases of marketable securities(12,693)(6,124)
Proceeds from maturities7,51015,967
Proceeds from sales2,8243,492
Payments for PP&E(2,373)(2,940)
Other(154)(603)
Cash generated by/(used in) investing(4,886)9,792
Financing activities:
Taxes for net share settlement(2,922)(2,921)
Payments for dividends(3,921)(3,856)
Repurchases of common stock(24,701)(23,606)
Repayments of term debt(2,164)(1,009)
Repayments of commercial paper, net(5,910)(7,944)
Other(38)(35)
Cash used in financing activities(39,656)(39,371)
Cash, ending balances$ 45,317$ 30,299
Page 3 of 3
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NASDAQ: AAPL · Quarter ended December 27, 2025

A record satisfying Q1.
iPhone momentum at new heights.

$143.8 billion in revenue. $42.1 billion in net income. Driven by an iPhone super-cycle and a 38% surge in Greater China.

Total Revenue
$143.8B
▲ 15.7% YoY
Strongest Q1 growth since FY2021
Net Income
$42.1B
▲ 15.9% YoY
Record quarterly profit
Diluted EPS
$2.84
▲ 18.3% YoY
Buybacks amplifying earnings growth
Gross Margin
48.2%
▲ 1.3pp YoY
Product margins expanded despite mix shift
Revenue · Trailing 8 Quarters ($B)
02 — Revenue Deep Dive

Three ways to read
the same $143.8 billion.

One revenue number. Three stories. Click any segment to filter the entire report.

Revenue by Segment — Q1 FY2026 vs FY2025 Click to cross-filter
03 — Profitability

Where the money went.
And what survived.

From $143.8B in revenue to $42.1B in net income. The waterfall reveals the story that tables hide.

Income Waterfall — Q1 FY2026
Gross margin expansion of $10.96B absorbed $2.94B in incremental operating expenses, flowing $8.02B to incremental operating income. R&D investment surged 31.7% to $10.9B, yet operating margin still expanded 90 basis points.
04 — Capital Allocation

The Cash Machine.

Apple generated $53.9B in operating cash flow. Here's every dollar's journey.

Sources
Net Income$42.1B
D&A$3.2B
Stock-Based Comp$3.6B
Working Capital$5.0B
$53.9B
Op. Cash Flow
Uses
Share Buybacks$24.7B
Dividends$3.9B
Debt Repayment$8.1B
Capex$2.4B
53%
Returned to Shareholders
The Buyback Machine
If Apple continues repurchasing at this quarter's pace of $24.7B...
Projection horizon3 years
05 — Scenario Lab

What happens next?

Move the sliders. The numbers — and the narrative — rewrite themselves in real time.

Revenue Growth (Q2 YoY)+5%
Gross Margin47.0%
Held Constant
OpEx ratio: 12.8% · Tax rate: 17.5%
Shares: ~14.65B (adj. for buybacks)
Apple generated $1.4 million in net income per minute this quarter.
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Independent analysis using publicly available financial data from Apple Inc. SEC filings. Not affiliated with or endorsed by Apple Inc.
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