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NASDAQ: AAPL Apple Inc. 10-Q

Apple's net sales rose 16.4% to $109.42B in the fiscal third quarter, with net income up 27.1% to $29.79B.

Filed July 31, 2026 · Period ending June 27, 2026 · Compared to 10-Q Aug 1, 2025 · ~1 min read

Key Financials

SEC XBRL
Metric PriorJun 28, 2025 CurrentJun 27, 2026 Δ
Revenue $94.0B $109.4B ▲ +16.4%
Net income $23.4B $29.8B ▲ +27.1%
Diluted EPS $1.57 $2.02 ▲ +28.7%
Operating income $28.2B $35.7B ▲ +26.6%
Cash & equivalents $36.3B $39.5B ▲ +9.0%
Long-term debt (noncurrent) $82.4B $71.3B ▼ -13.5%
Total assets $331.5B $383.3B ▲ +15.6%

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

Quarterly Cash Dividend MD&A

Prior filing · verify on EDGAR →

As of June 28, 2025, the Company's quarterly cash dividend was $0.26 per share.

Current filing · verify on EDGAR →

As of June 27, 2026, the Company's quarterly cash dividend was $0.27 per share.

Share Repurchases and Dividends Paid in Quarter MD&A

Prior filing · verify on EDGAR →

During the third quarter of 2025, the Company repurchased $21.0 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion.

Current filing · verify on EDGAR →

During the third quarter of 2026, the Company repurchased $25.8 billion of its common stock and paid dividends and dividend equivalents of $4.0 billion.

5 key changes 2 high relevance 4 sections

Key Changes

  • high

    iPhone net sales increased 21.7% to $54.25B, which the company attributes to higher net sales of Pro models.

  • medium

    Services net sales rose 12.1% to $30.74B, driven by higher net sales from advertising and cloud services.

  • high

    Operating cash flow for the first nine months was $117.00B, up 43.1% from $81.75B.

  • medium

    The company repurchased $25.8 billion of its common stock in the quarter and paid $4.0 billion in dividends.

  • low

    Total assets reached $383.27B, while total liabilities declined to $275.75B.

Summary

Apple delivered strong third-quarter results, with total net sales up 16.4% to $109.42B. iPhone remained the largest driver, rising 21.7% to $54.25B, which the company attributes to higher net sales of Pro models. Services also grew 12.1% to $30.74B, helped by higher net sales from advertising and cloud services.

Operating income increased 26.6% to $35.70B, and net income rose 27.1% to $29.79B. Diluted earnings per share were $2.02, up from $1.57. The company generated $117.00B in operating cash flow for the first nine months, a 43.1% increase, and returned significant capital to shareholders, repurchasing $25.8 billion of its common stock and paying $4.0 billion in dividends during the quarter.

Looking at the balance sheet, total assets grew to $383.27B, while total liabilities decreased to $275.75B. The company's cash, cash equivalents and marketable securities stood at $146.52B, up from $132.42B. Management highlighted ongoing supply constraints and rising component costs, which could pressure future margins.

Section-by-Section Diff

MD&A

~4,700 words (+8% vs prior)

Apple's MD&A now discloses supply constraints and rising component costs, new tariff developments including a Supreme Court ruling and refunds, and updated contractual obligations.

2 Added 1 Removed 2 Modified 2 Numbers
Substantive Edit Macroeconomic Conditions high

Previous filing · verify on EDGAR →

Macroeconomic conditions, including inflation, interest rates and currency fluctuations, have directly and indirectly impacted, and could in the future materially impact, the Company's results of operations and financial condition.

Current filing · verify on EDGAR →

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). 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 current filing adds a specific warning about supply constraints and rising component costs, including advanced semiconductors, NAND, and DRAM, which the baseline did not mention. This new disclosure highlights a material risk to revenue, costs, and gross margin.

Substantive Edit Tariffs and Other Measures high

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 ("Supreme Court") issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act of 1977. The Company has applied for a refund of tariffs paid, following the processes established by U.S. Customs and Border Protection, and has recognized any refunds received as a reduction of products cost of sales.

The current filing updates the tariff discussion with the publication of initial Section 232 investigation results, a Supreme Court ruling striking down certain tariffs, and the Company's application for refunds. These developments could materially affect costs and gross margin.

Added Other Purchase Obligations medium

Added in current filing · verify on EDGAR →

As of June 27, 2026, the Company had other purchase obligations of $29.3 billion, with $9.2 billion payable within 12 months.

The current filing adds a new disclosure of other purchase obligations of $29.3 billion, which was not separately disclosed in the baseline. This represents a significant contractual commitment.

Added Deemed Repatriation Tax Payable medium

Added in current filing · verify on EDGAR →

During the first nine months of 2026, the Company paid the remaining $8.8 billion balance of the deemed repatriation tax payable imposed by the U.S. Tax Cuts and Jobs Act of 2017.

The current filing discloses the payment of the remaining $8.8 billion deemed repatriation tax, a significant cash outflow not mentioned in the baseline.

Number Change Share Repurchases and Dividends Paid in Quarter medium

Previous filing · verify on EDGAR →

During the third quarter of 2025, the Company repurchased $21.0 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion.

Current filing · verify on EDGAR →

During the third quarter of 2026, the Company repurchased $25.8 billion of its common stock and paid dividends and dividend equivalents of $4.0 billion.

The Company increased its quarterly share repurchases from $21.0 billion to $25.8 billion and dividends paid from $3.9 billion to $4.0 billion, reflecting a higher capital return to shareholders.

Show 2 minor / wording changes
Removed State Aid Decision Tax Payable low

Removed from previous filing · verify on EDGAR →

During the first nine 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 baseline disclosed the settlement of the State Aid Decision tax payable, which is no longer present in the current filing as the obligation was fully settled.

Number Change Quarterly Cash Dividend low

Previous filing · verify on EDGAR →

As of June 28, 2025, the Company's quarterly cash dividend was $0.26 per share.

Current filing · verify on EDGAR →

As of June 27, 2026, the Company's quarterly cash dividend was $0.27 per share.

The quarterly cash dividend increased from $0.26 to $0.27 per share, consistent with the Company's intention to increase its dividend annually.

Risk Factors

~3,800 words (+1810% vs prior)

Apple added new risk factors on supply constraints for components and computing resources, and updated risks related to third-party developers, regulatory scrutiny, and data protection.

2 Added 1 Modified
Added Supply constraints for components and computing resources high

Added in current filing · verify on EDGAR →

The Company currently obtains certain components from single or limited sources, which exposes it to significant supply and pricing risks. In addition, many components, including those that are available from multiple sources, are at times subject to industry-wide shortages and significant commodity pricing fluctuations that can materially adversely affect the Company’s business, results of operations, financial condition and stock price. For example, 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), which adversely affects the Company’s ability to obtain sufficient quantities of components and products on commercially reasonable terms, or at all. The Company expects these trends to intensify, which may materially adversely impact the Company’s revenue, costs, gross margin, results of operations and financial condition.

The current filing adds a new risk factor describing supply constraints and increasing costs for components, including advanced semiconductors, storage, and memory, and expects these trends to intensify, which could materially adversely impact revenue, costs, gross margin, results of operations, and financial condition.

Added Dependence on computing resources for AI and ML offerings high

Added in current filing · verify on EDGAR →

The Company’s business, including its artificial intelligence and machine learning offerings, also depends on access to sufficient computing resources. Demand for cloud computing and artificial intelligence infrastructure has increased substantially across the technology industry, resulting in constrained supply, extended lead times, and increasing costs. In addition to its own data center infrastructure, the Company relies on third-party cloud service providers to meet these compute needs, and the Company may be unable to secure sufficient capacity on commercially reasonable terms, or at all, to meet customer demand.

The current filing adds a new risk factor about the Company's dependence on sufficient computing resources for its AI and ML offerings, noting constrained supply, extended lead times, and increasing costs, and reliance on third-party cloud providers.

Substantive Edit Data protection and online safety laws medium

Added in current filing · verify on EDGAR →

The Company is also subject to new and changing laws, regulations and other legal obligations regarding online safety, including enhanced protections for minors and mandatory age verification requirements. These obligations can increase regulatory risks by requiring complex compliance measures and significant modifications to the Company’s products, services and operations, and may lead to operational disruptions, heightened privacy and data security risks, and increased costs, all of which can have a material adverse impact on the Company’s business, results of operations, financial condition and stock price.

The current filing adds a new paragraph to the data protection risk factor about online safety laws, including enhanced protections for minors and mandatory age verification requirements, and the potential impact on the Company's business.

Notes

~5,400 words (+5% vs prior)

Apple added a new note on commitments and contingencies with unconditional purchase obligations and expanded segment disclosures.

1 Added 7 Modified
Added Unconditional Purchase Obligations medium

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, licensed intellectual property and content, and distribution rights.

The current filing adds a new disclosure of unconditional purchase obligations, with payments scheduled through 2030 and beyond. This was not present in the prior year's notes.

Show 7 minor / wording changes
Substantive Edit Segment Information Presentation low

Previous filing · verify on EDGAR →

The following table shows information by reportable segment for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (in millions):

Current filing · verify on EDGAR →

The following tables show information by reportable segment for the three- and nine-month periods ended June 27, 2026 and June 28, 2025 (in millions):

The segment note now presents a single table with net sales, cost of sales, research and development, selling and marketing, general and administrative, and operating income for each segment, whereas the prior filing only showed net sales and operating income by segment with a separate reconciliation.

Substantive Edit Trade Receivables Concentration low

Previous filing · verify on EDGAR →

As of June 28, 2025, the Company had two customers that individually represented 10% or more of total trade receivables, which accounted for 18% and 10%.

Current filing · verify on EDGAR →

As of both June 27, 2026 and September 27, 2025, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 18% and 12%, respectively.

The number of customers representing 10% or more of trade receivables decreased from two to one, and the concentration percentage for the largest customer changed from 18% to 18% (current) and 12% (prior year-end).

Substantive Edit Vendor Non-Trade Receivables Concentration low

Previous filing · verify on EDGAR →

As of June 28, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 48% and 14%.

Current filing · verify on EDGAR →

As of June 27, 2026, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 47% and 22%.

The concentration percentages for the vendor non-trade receivable counterparties changed from 48% and 14% to 47% and 22%.

Substantive Edit Derivative Notional Amounts low

Previous filing · verify on EDGAR →

Derivative instruments not designated as accounting hedges: Foreign exchange contracts $ 78,649 $ 91,493

Current filing · verify on EDGAR →

Derivative instruments not designated as accounting hedges: Foreign exchange contracts $ 64,053 $ 109,079

The notional amount of foreign exchange contracts not designated as accounting hedges decreased from the prior period end, while the prior year-end comparison also changed.

Substantive Edit Maximum Hedge Length for Term Debt low

Previous filing · verify on EDGAR →

As of June 28, 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.

Current filing · verify on EDGAR →

As of June 27, 2026, 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 16 years.

The maximum hedge length for term debt-related foreign currency transactions decreased from 17 years to 16 years.

Substantive Edit Deferred Revenue Realization Expectations low

Previous filing · verify on EDGAR →

As of June 28, 2025, the Company expects 66% of total deferred revenue to be realized in less than a year, 23% within one-to-two years, 9% within two-to-three years and 2% in greater than three years.

Current filing · verify on EDGAR →

As of June 27, 2026, the Company expects 64% of total deferred revenue to be realized in less than a year, 23% within one-to-two years, 11% within two-to-three years and 2% in greater than three years.

The expected realization of deferred revenue shifted slightly, with 64% expected in less than a year versus 66% previously, and 11% within two-to-three years versus 9% previously.

Substantive Edit Commercial Paper Outstanding low

Previous filing · verify on EDGAR →

As of June 28, 2025 and September 28, 2024, the Company had $9.9 billion and $10.0 billion of commercial paper outstanding, respectively.

Current filing · verify on EDGAR →

As of June 27, 2026 and September 27, 2025, the Company had $2.0 billion and $8.0 billion of commercial paper outstanding, respectively.

Commercial paper outstanding decreased significantly from $9.9 billion to $2.0 billion at the current period end.

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.

As filed

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 June 27, 2026 Three months ended June 28, 2025 Nine months ended June 27, 2026 Nine months ended June 28, 2025
Net sales:
Products 78,678 66,613 272,629 233,287
Services 30,739 27,423 91,728 80,408
Total net sales 109,417 94,036 364,357 313,695
Cost of sales:
Products 47,153 43,620 163,810 147,097
Services 7,494 6,698 21,765 19,738
Total cost of sales 54,647 50,318 185,575 166,835
Gross margin 54,770 43,718 178,782 146,860
Operating expenses:
Research and development 11,729 8,866 34,035 25,684
Selling, general and administrative 7,346 6,650 22,315 20,553
Total operating expenses 19,075 15,516 56,350 46,237
Operating income 35,695 28,202 122,432 100,623
Other income/(expense), net 572 (171) 670 (698)
Income before provision for income taxes 36,267 28,031 123,102 99,925
Provision for income taxes 6,478 4,597 21,638 15,381
Net income 29,789 23,434 101,464 84,544
Earnings per share:
Basic 2.03 1.57 6.91 5.64
Diluted 2.02 1.57 6.88 5.62
Shares used in computing earnings per share:
Basic 14,656,110 14,902,886 14,692,515 14,992,898
Diluted 14,714,676 14,948,179 14,750,302 15,051,726

Condensed Consolidated Balance Sheets (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and par value)

Description June 27, 2026 September 27, 2025
ASSETS:
Current assets:
Cash and cash equivalents 39,544 35,934
Marketable securities 22,855 18,763
Accounts receivable, net 31,398 39,777
Vendor non-trade receivables 27,509 33,180
Inventories 11,092 5,718
Other current assets 17,420 14,585
Total current assets 149,818 147,957
Non-current assets:
Marketable securities 84,118 77,723
Property, plant and equipment, net 51,431 49,834
Intangible assets, net 20,342 11,093
Other non-current assets 77,557 72,634
Total non-current assets 233,448 211,284
Total assets 383,266 359,241
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable 64,525 69,860
Other current liabilities 62,259 66,387
Deferred revenue 9,538 9,055
Commercial paper 1,997 7,979
Term debt 11,007 12,350
Total current liabilities 149,326 165,631
Non-current liabilities:
Term debt 71,340 78,328
Other non-current liabilities 55,080 41,549
Total non-current liabilities 126,420 119,877
Total liabilities 275,746 285,508
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 14,608,963 and 14,773,260 shares issued and outstanding, respectively 100,702 93,568
Retained earnings/(Accumulated deficit) 11,326 (14,264)
Accumulated other comprehensive loss (4,508) (5,571)
Total shareholders’ equity 107,520 73,733
Total liabilities and shareholders’ equity 383,266 359,241

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)

Description Nine months ended June 27, 2026 Nine months ended June 28, 2025
Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances 35,934 29,943
Operating activities:
Net income 101,464 84,544
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization 9,973 8,571
Share-based compensation expense 10,523 9,680
Other (2,037) (1,748)
Changes in operating assets and liabilities:
Accounts receivable, net 8,316 5,685
Vendor non-trade receivables 5,671 13,555
Inventories (5,461) 1,223
Other current and non-current assets (16,266) (6,116)
Accounts payable (5,203) (18,479)
Other current and non-current liabilities 10,016 (15,161)
Cash generated by operating activities 116,996 81,754
Investing activities:
Purchases of marketable securities (48,752) (17,591)
Proceeds from maturities of marketable securities 26,504 35,036
Proceeds from sales of marketable securities 12,016 10,785
Payments for acquisition of property, plant and equipment (6,799) (9,473)
Other (1,780) (975)
Cash generated by/(used in) investing activities (18,811) 17,782
Financing activities:
Payments for taxes related to net share settlement of equity awards (6,462) (5,719)
Payments for dividends and dividend equivalents (11,778) (11,559)
Repurchases of common stock (62,094) (70,579)
Proceeds from issuance of term debt, net — 4,481
Repayments of term debt (8,146) (9,682)
Repayments of commercial paper, net (5,911) (65)
Other (184) (87)
Cash used in financing activities (94,575) (93,210)
Increase in cash, cash equivalents, and restricted cash and cash equivalents 3,610 6,326
Cash, cash equivalents, and restricted cash and cash equivalents, ending balances 39,544 36,269
Supplemental cash flow disclosure:
Cash paid for income taxes, net 26,555 37,332

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 · Sep 12, 2026 · How we verify