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Get filing alertsApple's fiscal second-quarter net sales rose 16.6% to $111.18B, with net income up 19.4% to $29.58B.
Filed May 1, 2026 · Period ending March 28, 2026 · Compared to 10-Q May 2, 2025 · ~1 min read
Key Financials
SEC XBRL| Metric | PriorMar 29, 2025 | CurrentMar 28, 2026 | Δ |
|---|---|---|---|
| Revenue | $95.4B | $111.2B | ▲ +16.6% |
| Net income | $24.8B | $29.6B | ▲ +19.4% |
| Diluted EPS | $1.65 | $2.01 | ▲ +21.8% |
| Operating income | $29.6B | $35.9B | ▲ +21.3% |
| Cash & equivalents | $28.2B | $45.6B | ▲ +61.8% |
| Long-term debt (noncurrent) | $78.6B | $74.4B | ▼ -5.3% |
| Total assets | $331.2B | $371.1B | ▲ +12.0% |
As reported in XBRL by the filer · 10-Q vs 10-Q. Income figures cover the fiscal quarter (not year-to-date); cash & assets are period-end balances. n/m = not meaningful (sign change; a % would mislead). about this table · verify on EDGAR →
Key Number Changes
Prior filing · verify on EDGAR →
As of March 29, 2025, the Company had manufacturing purchase obligations of $38.4 billion, which were payable within 12 months.
Current filing · verify on EDGAR →
As of March 28, 2026, the Company had manufacturing purchase obligations of $44.6 billion, with $43.9 billion payable within 12 months.
Prior filing · verify on EDGAR →
the remaining availability was $40.8 billion as of March 29, 2025
Current filing · verify on EDGAR →
the remaining availability was $63.8 billion as of March 28, 2026
Prior filing · verify on EDGAR →
raised the Company’s quarterly cash dividend from $0.25 to $0.26 per share
Current filing · verify on EDGAR →
raised the Company’s quarterly cash dividend from $0.26 to $0.27 per share
Key Changes
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high
iPhone net sales increased 21.7% to $56.99B in the quarter, which the company attributes to higher net sales of Pro models.
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high
Services net sales rose 16.3% to $30.98B, driven by higher net sales from advertising, the App Store® and cloud services.
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high
Gross margin expanded to 49.3% from 47.1%, which the company attributes to a different mix of products and strength in foreign currencies relative to the U.S. dollar, partially offset by higher costs.
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high
Operating cash flow for the first six months jumped 53.3% to $82.63B, while capital expenditures fell to $4.34B from $6.01B.
Summary
Apple reported strong fiscal second-quarter results, with total net sales up 16.6% to $111.18B. iPhone led the growth, rising 21.7% to $56.99B, which the company attributes to higher net sales of Pro models. Services also performed well, increasing 16.3% to $30.98B, driven by higher net sales from advertising, the App Store® and cloud services. Geographically, Greater China net sales grew 28.1% to $20.50B, the fastest among segments.
Gross margin improved to 49.3% from 47.1%, which the company attributes to a different mix of products and strength in foreign currencies relative to the U.S. dollar, partially offset by higher costs. Operating expenses rose 23.7% to $18.90B, with R&D up 33.6% to $11.42B, primarily due to higher infrastructure-related costs and headcount-related expenses.
For the first six months, operating cash flow surged 53.3% to $82.63B, while the company returned $36.99B to shareholders through buybacks and $7.74B in dividends. The balance sheet strengthened, with total liabilities down 7.3% to $264.59B and cash and investments up to $146.60B. On April 30, 2026, Apple announced a new $100 billion share repurchase authorization and raised its quarterly dividend to $0.27 per share.
Section-by-Section Diff
MD&A
Previous filing · verify on EDGAR →
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.
Current filing · verify on EDGAR →
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 issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act of 1977. The Company is applying for a refund of tariffs paid, following the processes established by U.S. Customs and Border Protection.
The tariff discussion is updated to reflect the publication of initial Section 232 investigation results, which did not impose additional tariffs, and a Supreme Court ruling striking down certain tariffs, with the Company applying for refunds.
Previous filing · verify on EDGAR →
As of March 29, 2025, the Company had manufacturing purchase obligations of $38.4 billion, which were payable within 12 months.
Current filing · verify on EDGAR →
As of March 28, 2026, the Company had manufacturing purchase obligations of $44.6 billion, with $43.9 billion payable within 12 months.
Manufacturing purchase obligations increased from $38.4 billion to $44.6 billion, with $43.9 billion payable within 12 months.
Removed from previous filing · verify on EDGAR →
During the first six months of 2025, the Company released from escrow €14.2 billion or $15.4 billion to Ireland in connection with the State Aid Decision, which fully settled the obligation.
The prior filing disclosed the release of €14.2 billion from escrow to Ireland to settle the State Aid Decision tax payable; this disclosure is removed in the current filing as the obligation was fully settled.
Previous filing · verify on EDGAR →
the remaining availability was $40.8 billion as of March 29, 2025
Current filing · verify on EDGAR →
the remaining availability was $63.8 billion as of March 28, 2026
Show 1 minor / wording change
Previous filing · verify on EDGAR →
raised the Company’s quarterly cash dividend from $0.25 to $0.26 per share
Current filing · verify on EDGAR →
raised the Company’s quarterly cash dividend from $0.26 to $0.27 per share
The quarterly dividend was raised from $0.26 to $0.27 per share, continuing the annual increase.
Risk Factors
Added in current filing · verify on EDGAR →
Issues related to artificial intelligence may result in reputational, competitive and financial harm to the Company, regulatory action, legal liability, and other material adverse effects to the Company’s business, results of operations, financial condition and stock price.
The current filing adds a new risk factor addressing the emerging legal, regulatory, ethical and operational risks from integrating AI into products and services, including product liability, IP infringement, data privacy, and harmful content.
Added in current filing · verify on EDGAR →
The rapid advancement and widespread dissemination of artificial intelligence technologies significantly increases the risks associated with cyberattacks.
The current filing adds a discussion of how AI technologies are being used to create sophisticated phishing campaigns, automate vulnerability exploitation, and generate deepfakes, intensifying cyber risks.
Legal Proceedings
Previous filing · verify on EDGAR →
The Company will continue to vigorously defend its actions and employees, including by appealing the California District Court’s most recent decision.
Current filing · verify on EDGAR →
On December 11, 2025, the Ninth Circuit Court issued an order upholding the 2025 Injunction in part and modifying certain aspects to allow the Company to require parity in size, form and placement between the Company’s in-app purchase and any links for consumers to make purchases outside an app. The Ninth Circuit Court also held that the Company can charge a commission on link-out purchases, and remanded to the California District Court to further amend or modify the 2025 Injunction, consistent with the Ninth Circuit Court’s order.
The Ninth Circuit upheld the 2025 Injunction in part but modified it to allow Apple to require parity in size, form and placement between in-app purchase and external purchase links, and held Apple can charge a commission on link-out purchases. The case was remanded to the district court for further amendment of the injunction.
Removed from previous filing · verify on EDGAR →
Also on April 23, 2025, the Commission closed the Article 6(3) Investigation without imposing a fine and issued preliminary findings in the Article 6(4) Investigation.
The Article 6(3) Investigation concerning default settings, uninstallation of apps, and a web browser choice screen was closed without a fine and is no longer mentioned in the current filing.
Previous filing · verify on EDGAR →
The Company plans to appeal the Commission’s Article 5(4) decision. Unless a stay is granted, any order by the Commission is effective while an appeal is pending.
Current filing · verify on EDGAR →
The Company has appealed the Commission’s Article 5(4) decision.
The Company has now filed its appeal of the fine and cease and desist order, whereas previously it only planned to appeal. The statement about the order being effective while an appeal is pending was removed.
Notes
Apple added a new Note 9 disclosure on unconditional purchase obligations and expanded its intangible assets disclosure, while removing the inventories detail and the State Aid escrow disclosure.
Added in current filing · verify on EDGAR →
The Company has entered into certain off–balance sheet commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of supplier arrangements, distribution rights, and licensed intellectual property and content. Future payments under unconditional purchase obligations with a remaining term in excess of one year as of March 28, 2026, are as follows (in millions):
The current filing adds a new disclosure in Note 9 detailing unconditional purchase obligations, with payments scheduled through 2030 and beyond. This was not present in the prior year's notes.
Added in current filing · view on EDGAR →
Intangible Assets, Net | March 28, | 2026 September 27, | 2025
Gross intangible assets $ 37,767 $ 24,950
Accumulated amortization (11,970) (11,649)
Total intangible assets, net 25,797 13,301
Less: Current portion of intangible assets, net (4,463) (2,208)
Non-current portion of intangible assets, net $ 21,334 $ 11,093
The current filing adds a new table in Note 5 providing a breakdown of intangible assets, including gross amount, accumulated amortization, and current vs. non-current portions. The prior year's notes did not include this detail.
Removed from previous filing · verify on EDGAR →
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.
The prior year's Note 4 included a footnote disclosing restricted cash and cash equivalents held in escrow related to the European Commission State Aid Decision. This disclosure is removed in the current filing.
Previous filing · verify on EDGAR →
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.
Current filing · verify on EDGAR →
As of both March 28, 2026 and September 27, 2025, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 17% and 12%, respectively. The Company’s third-party cellular network carriers accounted for 30% and 34% of total trade receivables as of March 28, 2026 and September 27, 2025, respectively.
The current filing adds disclosure of a single customer representing 10% or more of trade receivables, while the concentration among third-party cellular network carriers decreased.
Previous filing · verify on EDGAR →
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
Current filing · verify on EDGAR →
Derivative instruments designated as accounting hedges:
Foreign exchange contracts $ 57,963 $ 62,647
Interest rate contracts $ 10,625 $ 12,875
Derivative instruments not designated as accounting hedges:
Foreign exchange contracts $ 96,341 $ 109,079
The notional amounts of derivative instruments changed, with designated foreign exchange contracts and interest rate contracts decreasing, while non-designated foreign exchange contracts increased.
Show 2 minor / wording changes
Removed from previous filing · view on EDGAR →
Inventories | March 29, | 2025 September 28, | 2024 | Components $ 2,673 $ 3,627 | Finished goods 3,596 3,659 | Total inventories $ 6,269 $ 7,286
The prior year's Note 5 included a table breaking down inventories into components and finished goods. This detail is absent from the current filing, which only reports total inventories on the balance sheet.
Previous filing · verify on EDGAR →
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%.
Current filing · verify on EDGAR →
As of March 28, 2026, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 51% and 18%. As of September 27, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 46% and 23%.
The concentration percentages for the vendor non-trade receivable counterparties changed, with the largest vendor increasing and the second largest decreasing at the respective quarter ends.
Financial Statements
Primary statements as printed on the EDGAR filing (iXBRL face). Companyfacts is used only when a statement is not on the HTML face. Not generated by the model.
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| Description | Three months ended March 28, 2026 | Three months ended March 29, 2025 | Six months ended March 28, 2026 | Six months ended March 29, 2025 |
|---|---|---|---|---|
| Net sales: | ||||
| Products | 80,208 | 68,714 | 193,951 | 166,674 |
| Services | 30,976 | 26,645 | 60,989 | 52,985 |
| Total net sales | 111,184 | 95,359 | 254,940 | 219,659 |
| Cost of sales: | ||||
| Products | 49,179 | 44,030 | 116,657 | 103,477 |
| Services | 7,224 | 6,462 | 14,271 | 13,040 |
| Total cost of sales | 56,403 | 50,492 | 130,928 | 116,517 |
| Gross margin | 54,781 | 44,867 | 124,012 | 103,142 |
| Operating expenses: | ||||
| Research and development | 11,419 | 8,550 | 22,306 | 16,818 |
| Selling, general and administrative | 7,477 | 6,728 | 14,969 | 13,903 |
| Total operating expenses | 18,896 | 15,278 | 37,275 | 30,721 |
| Operating income | 35,885 | 29,589 | 86,737 | 72,421 |
| Other income/(expense), net | (52) | (279) | 98 | (527) |
| Income before provision for income taxes | 35,833 | 29,310 | 86,835 | 71,894 |
| Provision for income taxes | 6,255 | 4,530 | 15,160 | 10,784 |
| Net income | 29,578 | 24,780 | 71,675 | 61,110 |
| Earnings per share: | ||||
| Basic | 2.02 | 1.65 | 4.87 | 4.06 |
| Diluted | 2.01 | 1.65 | 4.85 | 4.05 |
| Shares used in computing earnings per share: | ||||
| Basic | 14,673,278 | 14,994,082 | 14,710,718 | 15,037,903 |
| Diluted | 14,725,873 | 15,056,133 | 14,768,115 | 15,103,499 |
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| Description | March 28, 2026 | September 27, 2025 |
|---|---|---|
| ASSETS: | ||
| Current assets: | ||
| Cash and cash equivalents | 45,572 | 35,934 |
| Marketable securities | 22,935 | 18,763 |
| Accounts receivable, net | 30,339 | 39,777 |
| Vendor non-trade receivables | 23,172 | 33,180 |
| Inventories | 6,747 | 5,718 |
| Other current assets | 15,349 | 14,585 |
| Total current assets | 144,114 | 147,957 |
| Non-current assets: | ||
| Marketable securities | 78,088 | 77,723 |
| Property, plant and equipment, net | 50,116 | 49,834 |
| Intangible assets, net | 21,334 | 11,093 |
| Other non-current assets | 77,430 | 72,634 |
| Total non-current assets | 226,968 | 211,284 |
| Total assets | 371,082 | 359,241 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||
| Current liabilities: | ||
| Accounts payable | 57,349 | 69,860 |
| Other current liabilities | 57,654 | 66,387 |
| Deferred revenue | 9,331 | 9,055 |
| Commercial paper | 1,997 | 7,979 |
| Term debt | 8,310 | 12,350 |
| Total current liabilities | 134,641 | 165,631 |
| Non-current liabilities: | ||
| Term debt | 74,404 | 78,328 |
| Other non-current liabilities | 55,546 | 41,549 |
| Total non-current liabilities | 129,950 | 119,877 |
| Total liabilities | 264,591 | 285,508 |
| Commitments and contingencies | ||
| Shareholders’ equity: | ||
| Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 14,667,688 and 14,773,260 shares issued and outstanding, respectively | 99,507 | 93,568 |
| Retained earnings/(Accumulated deficit) | 12,359 | (14,264) |
| Accumulated other comprehensive loss | (5,375) | (5,571) |
| Total shareholders’ equity | 106,491 | 73,733 |
| Total liabilities and shareholders’ equity | 371,082 | 359,241 |
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
| Description | Six months ended March 28, 2026 | Six months ended March 29, 2025 |
|---|---|---|
| Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances | 35,934 | 29,943 |
| Operating activities: | ||
| Net income | 71,675 | 61,110 |
| Adjustments to reconcile net income to cash generated by operating activities: | ||
| Depreciation and amortization | 6,653 | 5,741 |
| Share-based compensation expense | 7,122 | 6,512 |
| Other | (1,717) | (2,217) |
| Changes in operating assets and liabilities: | ||
| Accounts receivable, net | 9,295 | 7,266 |
| Vendor non-trade receivables | 10,008 | 9,171 |
| Inventories | (1,084) | 858 |
| Other current and non-current assets | (14,329) | (4,371) |
| Accounts payable | (12,297) | (14,604) |
| Other current and non-current liabilities | 7,301 | (15,579) |
| Cash generated by operating activities | 82,627 | 53,887 |
| Investing activities: | ||
| Purchases of marketable securities | (32,432) | (12,442) |
| Proceeds from maturities of marketable securities | 18,691 | 26,587 |
| Proceeds from sales of marketable securities | 8,615 | 5,210 |
| Payments for acquisition of property, plant and equipment | (4,344) | (6,011) |
| Other | (1,584) | (635) |
| Cash generated by/(used in) investing activities | (11,054) | 12,709 |
| Financing activities: | ||
| Payments for taxes related to net share settlement of equity awards | (3,252) | (3,205) |
| Payments for dividends and dividend equivalents | (7,743) | (7,614) |
| Repurchases of common stock | (36,989) | (49,504) |
| Repayments of term debt | (7,914) | (4,009) |
| Repayments of commercial paper, net | (5,911) | (3,968) |
| Other | (126) | (77) |
| Cash used in financing activities | (61,935) | (68,377) |
| Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents | 9,638 | (1,781) |
| Cash, cash equivalents, and restricted cash and cash equivalents, ending balances | 45,572 | 28,162 |
| Supplemental cash flow disclosure: | ||
| Cash paid for income taxes, net | 20,397 | 31,683 |
Amounts as printed on the EDGAR/iXBRL face — (In millions, except number of shares, which are reflected in thousands, and per-share amounts); (In millions, except number of shares, which are reflected in thousands, and par value); (In millions). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 24, 2026 · How we verify