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Critical incident detected

Regulatory enforcement action

Time-sensitive event — see the red-flag panel below for the source-quoted detail.

Red Flags Detected

  • Cease and Desist (worsened) — The European Commission's cease and desist order from April 2025 remains in effect and the Company has appealed, with potential additional fines if deemed noncompliant.
NASDAQ: AAPL Apple Inc. 10-Q

Apple's Q3 revenue jumps 16.4% to $109.4B, net income up 27.1% to $29.8B

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

Segment net sales growth MD&A

Prior filing · view on EDGAR →

Americas $ 41,198 $ 37,678 9 % $ 134,161 $ 125,381 7 %

Current filing · view on EDGAR →

Americas $ 45,781 $ 41,198 11% $ 149,403 $ 134,161 11%

Greater China net sales growth MD&A

Prior filing · view on EDGAR →

Greater China 15,369 14,728 4 % 49,884 51,919 (4) %

Current filing · view on EDGAR →

Greater China 18,816 15,369 22% 64,839 49,884 30%

iPhone net sales growth MD&A

Prior filing · view on EDGAR →

iPhone $ 44,582 $ 39,296 13 % $ 160,561 $ 154,961 4 %

Current filing · view on EDGAR →

iPhone $ 54,252 $ 44,582 22% $ 196,515 $ 160,561 22%

Products gross margin percentage MD&A

Prior filing · verify on EDGAR →

Products 34.5 % 35.3 % 36.9 % 37.5 %

Current filing · verify on EDGAR →

Products 40.1 % 34.5 % 39.9 % 36.9 %

Research and development expense MD&A

Prior filing · verify on EDGAR →

Research and development $ 8,866 $ 8,006 $ 25,684 $ 23,605

Current filing · verify on EDGAR →

Research and development $ 11,729 $ 8,866 32 % $ 34,035 $ 25,684 33 %

Manufacturing purchase obligations MD&A

Prior filing · verify on EDGAR →

As of June 28, 2025, the Company had manufacturing purchase obligations of $44.1 billion, with $43.8 billion payable within 12 months.

Current filing · verify on EDGAR →

As of June 27, 2026, the Company had manufacturing purchase obligations of $57.0 billion, with $56.2 billion payable within 12 months.

Dividend per share 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 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.

Revenue growth Notes

Prior filing · verify on EDGAR →

Total net sales $ 94,036 $ 85,777 $ 313,695 $ 296,105

Current filing · verify on EDGAR →

Total net sales $ 109,417 $ 94,036 $ 364,357 $ 313,695

Net income growth Notes

Prior filing · verify on EDGAR →

Net income $ 23,434 $ 21,448 $ 84,544 $ 79,000

Current filing · verify on EDGAR →

Net income $ 29,789 $ 23,434 $ 101,464 $ 84,544

Inventories Notes

Prior filing · verify on EDGAR →

Components $ 2,288 $ 3,627

Current filing · verify on EDGAR →

Components $ 7,645 $ 2,124

Share repurchases Notes

Prior filing · verify on EDGAR →

During the nine months ended June 28, 2025, the Company repurchased 312 million shares of its common stock for $69.3 billion.

Current filing · verify on EDGAR →

During the nine months ended June 27, 2026, the Company repurchased 215 million shares of its common stock for $61.8 billion.

Commercial paper outstanding Notes

Prior 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.

Term debt carrying amount Notes

Prior filing · verify on EDGAR →

As of June 28, 2025 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $91.8 billion and $96.7 billion, respectively

Current filing · verify on EDGAR →

As of June 27, 2026 and September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $82.3 billion and $90.7 billion, respectively

Deferred revenue realization Notes

Prior 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.

5 key changes 5 high relevance 1 red flag 4 sections

Key Changes

Summary

Apple delivered a strong fiscal third quarter, with revenue up 16.4% to $109.4 billion and net income up 27.1% to $29.8 billion. Growth was broad-based, led by a 22% jump in iPhone sales and a 22% surge in Greater China. Products gross margin expanded to 40.1%, reflecting favorable product mix and cost controls.

However, the company flagged intensifying supply constraints and rising component costs for advanced semiconductors, NAND, and DRAM, which could pressure future margins. Regulatory and legal risks are mounting. The Supreme Court has agreed to review the Epic Games injunction, which could alter App Store commission structures.

In Europe, the DMA's interoperability requirements may force Apple to limit product launches, such as Siri AI, in certain jurisdictions. Additionally, the European Commission's cease and desist order remains in effect, with potential fines if Apple is deemed noncompliant. Investors should watch next quarter for any updates on component supply and pricing, as well as developments in the Epic Games and EU regulatory matters, which could materially impact Apple's business model and profitability.

Section-by-Section Diff

MD&A

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

Apple's Q3 2026 MD&A shows strong growth, new tariff developments, and higher costs, with updated segment and product details.

4 Added 2 Removed 1 Modified 8 Numbers
Substantive Edit Tariff developments 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 adds specific developments: the Section 232 investigation results were published in January 2026 without new tariffs on Apple products, and a Supreme Court ruling in February 2026 struck down certain tariffs, leading Apple to apply for refunds. This is a material update to the tariff narrative.

Added Supply constraints and component costs high

Added in 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 new paragraph describing supply constraints and rising component costs, with an expectation that these trends will intensify and materially negatively impact results. This is a new disclosure not present in the baseline.

Number Change Segment net sales growth medium

Previous filing · view on EDGAR →

Americas $ 41,198 $ 37,678 9 % $ 134,161 $ 125,381 7 %

Current filing · view on EDGAR →

Americas $ 45,781 $ 41,198 11% $ 149,403 $ 134,161 11%

Americas segment net sales increased 11% year-over-year in Q3 2026 versus 9% in Q3 2025, and 11% for the nine-month period versus 7% previously. The growth rate accelerated.

Number Change Greater China net sales growth high

Previous filing · view on EDGAR →

Greater China 15,369 14,728 4 % 49,884 51,919 (4) %

Current filing · view on EDGAR →

Greater China 18,816 15,369 22% 64,839 49,884 30%

Greater China net sales growth accelerated significantly, from 4% in Q3 2025 to 22% in Q3 2026, and from a 4% decline in the nine-month period to a 30% increase. This is a major improvement.

Number Change iPhone net sales growth high

Previous filing · view on EDGAR →

iPhone $ 44,582 $ 39,296 13 % $ 160,561 $ 154,961 4 %

Current filing · view on EDGAR →

iPhone $ 54,252 $ 44,582 22% $ 196,515 $ 160,561 22%

iPhone net sales growth accelerated from 13% in Q3 2025 to 22% in Q3 2026, and from 4% for the nine-month period to 22%. This is a significant acceleration.

Number Change Products gross margin percentage high

Previous filing · verify on EDGAR →

Products 34.5 % 35.3 % 36.9 % 37.5 %

Current filing · verify on EDGAR →

Products 40.1 % 34.5 % 39.9 % 36.9 %

Products gross margin percentage increased from 34.5% in Q3 2025 to 40.1% in Q3 2026, and from 36.9% to 39.9% for the nine-month period. The improvement is substantial.

Number Change Research and development expense medium

Previous filing · verify on EDGAR →

Research and development $ 8,866 $ 8,006 $ 25,684 $ 23,605

Current filing · verify on EDGAR →

Research and development $ 11,729 $ 8,866 32 % $ 34,035 $ 25,684 33 %

R&D expense increased 32% year-over-year in Q3 2026 and 33% for the nine-month period, driven by higher infrastructure-related costs including AI investments. The growth rate is higher than the prior year's increase.

Number Change Manufacturing purchase obligations medium

Previous filing · verify on EDGAR →

As of June 28, 2025, the Company had manufacturing purchase obligations of $44.1 billion, with $43.8 billion payable within 12 months.

Current filing · verify on EDGAR →

As of June 27, 2026, the Company had manufacturing purchase obligations of $57.0 billion, with $56.2 billion payable within 12 months.

Manufacturing purchase obligations increased from $44.1 billion to $57.0 billion, a 29% increase, indicating higher committed component purchases.

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 for other purchase obligations of $29.3 billion, which was not separately disclosed in the baseline.

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 adds a new disclosure about paying the remaining $8.8 billion deemed repatriation tax payable, which was not mentioned in the baseline.

Number Change Dividend per share medium

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 dividend increased from $0.26 to $0.27 per share, a 3.8% increase.

Number Change Share repurchases and dividends 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.

Share repurchases increased from $21.0 billion to $25.8 billion, and dividends paid increased from $3.9 billion to $4.0 billion.

Show 3 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 mentioned in the current filing. This is a lifecycle removal as the obligation was fully settled.

Added Internal-use software accounting standard low

Added in current filing · verify on EDGAR →

In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the accounting for internal-use software. ASU 2025-06 removes all references to software development stages and requires capitalization of software costs when management has committed to the software project and it is probable the software will be completed and perform its intended use. ASU 2025-06 will be effective for the Company in its first quarter of 2029, and early adoption is permitted. The Company is currently evaluating the timing and method of its adoption of ASU 2025-06.

The current filing adds a new accounting pronouncement disclosure for ASU 2025-06 on internal-use software, which was not present in the baseline.

Removed Segment reporting accounting standard low

Removed from previous filing · verify on EDGAR →

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which will require the Company to disclose segment expenses that are significant and regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM and how the CODM uses segment profit or loss information in assessing segment performance and deciding how to allocate resources. The Company will adopt ASU 2023-07 in its fourth quarter of 2025 using a retrospective transition method.

The baseline disclosed the adoption of ASU 2023-07, which is no longer mentioned in the current filing. This is a lifecycle removal as the standard has been adopted.

Notes

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

Apple's Q3 2026 notes show strong revenue and profit growth, higher inventories, and a new intangible assets disclosure.

1 Added 7 Numbers
Number Change Revenue growth high

Previous filing · verify on EDGAR →

Total net sales $ 94,036 $ 85,777 $ 313,695 $ 296,105

Current filing · verify on EDGAR →

Total net sales $ 109,417 $ 94,036 $ 364,357 $ 313,695

Total net sales for the three months ended June 27, 2026 increased to $109,417 million from $94,036 million in the prior-year quarter, and nine-month net sales rose to $364,357 million from $313,695 million. This reflects broad-based growth across products and services.

Number Change Net income growth high

Previous filing · verify on EDGAR →

Net income $ 23,434 $ 21,448 $ 84,544 $ 79,000

Current filing · verify on EDGAR →

Net income $ 29,789 $ 23,434 $ 101,464 $ 84,544

Net income for the three months ended June 27, 2026 increased to $29,789 million from $23,434 million in the prior-year quarter, and nine-month net income rose to $101,464 million from $84,544 million. The growth is driven by higher sales and improved operating margins.

Number Change Inventories medium

Previous filing · verify on EDGAR →

Components $ 2,288 $ 3,627

Current filing · verify on EDGAR →

Components $ 7,645 $ 2,124

Component inventories increased significantly to $7,645 million as of June 27, 2026, from $2,124 million as of September 27, 2025, and compared to $2,288 million as of June 28, 2025. This may indicate buildup ahead of new product launches or supply chain changes.

Added Intangible assets disclosure medium

Added in current filing · view on EDGAR →

Intangible Assets, Net | June 27, | 2026 September 27, | 2025 Gross intangible assets $ 38,220 $ 24,950 Accumulated amortization (12,803) (11,649) Total intangible assets, net 25,417 13,301 Less: Current portion of intangible assets, net (5,075) (2,208) Non-current portion of intangible assets, net $ 20,342 $ 11,093

The current filing includes a new note disclosure for intangible assets, showing gross intangible assets of $38,220 million and net intangible assets of $25,417 million as of June 27, 2026. This disclosure was not present in the baseline filing, likely due to a change in reporting or a new acquisition.

Number Change Share repurchases medium

Previous filing · verify on EDGAR →

During the nine months ended June 28, 2025, the Company repurchased 312 million shares of its common stock for $69.3 billion.

Current filing · verify on EDGAR →

During the nine months ended June 27, 2026, the Company repurchased 215 million shares of its common stock for $61.8 billion.

The number of shares repurchased decreased from 312 million to 215 million, and the total repurchase amount decreased from $69.3 billion to $61.8 billion. This reflects a lower pace of buybacks in the current nine-month period.

Show 3 minor / wording changes
Number Change 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 to $2.0 billion as of June 27, 2026, from $8.0 billion as of September 27, 2025, and compared to $9.9 billion as of June 28, 2025. This indicates a reduction in short-term borrowings.

Number Change Term debt carrying amount low

Previous filing · verify on EDGAR →

As of June 28, 2025 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $91.8 billion and $96.7 billion, respectively

Current filing · verify on EDGAR →

As of June 27, 2026 and September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $82.3 billion and $90.7 billion, respectively

The aggregate carrying amount of fixed-rate notes decreased to $82.3 billion as of June 27, 2026, from $90.7 billion as of September 27, 2025, and compared to $91.8 billion as of June 28, 2025. This reflects debt repayments during the period.

Number Change Deferred revenue realization 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 (down from 66%) and 11% within two-to-three years (up from 9%). This indicates a modest lengthening of the deferred revenue recognition timeline.

Risk Factors

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

Apple adds new risk factors on component/compute supply constraints, third-party developer support, regulatory scrutiny, and data privacy.

9 Added
Added component supply constraints 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, NAND, and DRAM, with expectations that these trends will intensify. This is a new disclosure not present in the baseline.

Added computing resources and AI infrastructure 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 dependence on computing resources for AI and machine learning offerings, citing constrained supply and reliance on third-party cloud providers. This is a new disclosure not present in the baseline.

Added third-party software developer support medium

Added in current filing · verify on EDGAR →

The Company’s future performance depends in part on support from third-party software developers. The Company believes decisions by customers to purchase its hardware products depend in part on the availability of third-party software applications and services. Third-party developers may discontinue the development and maintenance of software applications and services for the Company’s products. If third-party software applications and services cease to be developed and maintained for the Company’s products, customers may choose not to buy the Company’s products, materially adversely impacting the Company’s business, results of operations, financial condition and stock price.

The current filing adds a new risk factor about dependence on third-party software developers and the potential impact on hardware sales if developers discontinue support. This is a new disclosure not present in the baseline.

Added App Store commission and alternative distribution high

Added in current filing · verify on EDGAR →

The Company distributes third-party applications through the App Store. Where applicable, the Company may retain a commission from sales of applications and sales of digital services or goods initiated within an application. If third-party developers use alternative methods of distribution and payment for their apps and digital content, including direct-to-consumer distribution models, the Company may earn a lower commission on such sales, or may not earn a commission at all, which can materially adversely affect the Company’s revenue, gross margin, results of operations, financial condition and stock price.

The current filing adds a new risk factor about potential loss of App Store commission revenue if developers use alternative distribution and payment methods. This is a new disclosure not present in the baseline.

Added regulatory scrutiny and antitrust litigation high

Added in current filing · verify on EDGAR →

The technology industry, including, in some instances, the Company, is subject to intense media, political and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions and penalties. From time to time, the Company has made changes to its business, including actions taken in response to litigation, competition, market conditions and legal and regulatory requirements. The Company expects to make further business changes in the future. For example, in the U.S., the Company has implemented changes to how developers communicate with consumers within apps on the U.S. storefront of the iOS and iPadOS App Store regarding alternative purchasing mechanisms. The Company is also currently subject to a court order in the U.S. preventing it from imposing any commission or fee on certain purchases that consumers make. The Ninth Circuit Court has instructed the California District Court to further amend or modify its injunction to allow the Company to charge a commission. If the Company is ultimately unsuccessful in defending its commission structure or if similar restrictions are imposed or expanded in other jurisdictions, and as a result the Company’s commission is narrowed or eliminated, the Company’s business, results of operations, and financial condition could be materially and adversely affected.

The current filing adds a new risk factor about intense regulatory scrutiny, government investigations, and legal actions, including specific details about a U.S. court order preventing commissions and the Ninth Circuit's instruction to amend the injunction. This is a new disclosure not present in the baseline.

Added DMA compliance and interoperability obligations high

Added in current filing · verify on EDGAR →

Globally, several jurisdictions have adopted, or may in the future adopt, competition-related laws and regulations imposing wide-ranging obligations on technology companies and significant limitations on businesses, including the Company. For example, the Company has implemented changes to iOS, iPadOS, the App Store and Safari® in the EU as it seeks to comply with the DMA, including new business terms and alternative fee structures for iOS and iPadOS apps, alternative methods of distribution for iOS and iPadOS apps, alternative payment processing for apps across the Company’s operating systems, and additional tools and application programming interfaces for developers. In addition, the DMA imposes interoperability obligations on the Company requiring it to make certain of its technologies and features available to third-party products and services for free, which increases security and privacy risks, requires significant engineering resources, and can adversely affect the functionality, competitiveness, and user experience of the Company’s products. Interoperability and other requirements have in the past, and may in the future, cause the Company to not launch or maintain products, services and features, such as Siri AI, in certain jurisdictions. Any of these outcomes can have a negative impact on the Company’s competitive advantage and materially adversely affect its business, results of operations, financial condition and stock price.

The current filing adds a new risk factor about DMA compliance in the EU, including interoperability obligations that may prevent launching products like Siri AI in certain jurisdictions. This is a new disclosure not present in the baseline.

Added Google search licensing arrangements high

Added in current filing · verify on EDGAR →

Further, the Company has commercial relationships with other companies in the technology industry that are or may become subject to investigations and litigation that, if resolved against those other companies, could materially adversely affect the Company’s commercial relationships with those business partners and materially adversely affect the Company’s business, results of operations, financial condition and stock price. For example, the Company earns revenue from licensing arrangements with Google LLC (“Google”) and other companies to offer their search services on the Company’s platforms and applications, and certain of these arrangements are currently subject to government investigations and legal proceedings. On August 5, 2024, Google was found to have violated U.S. antitrust laws. In connection with this finding, on September 2, 2025, the U.S. District Court for the District of Columbia (“D.C. District Court”) ordered certain remedies. The court’s order is subject to further proceedings before the D.C. District Court, which may result in changes to the interpretation or application of the remedies ordered by the court, as well as new or changed remedies being ordered. The court’s order was appealed by both the DOJ and Google. A reversal of the order on appeal could result in imposition of certain remedies initially proposed by the DOJ, such as those prohibiting Google from offering the Company commercial terms for search distribution. If implemented, these remedies could materially adversely affect the Company’s ability to earn revenue from such licensing arrangements.

The current filing adds a new risk factor about revenue from Google search licensing arrangements and the potential impact of antitrust remedies, including the possibility that Google may be prohibited from offering commercial terms. This is a new disclosure not present in the baseline.

Added data privacy and online safety regulations medium

Added in current filing · verify on EDGAR →

The Company is subject to an increasing number of federal, state and international laws relating to the collection, use, retention, protection and transfer of various types of personal data. In many cases, these laws apply not only to third-party transactions, but also restrict transfers of personal data among the Company and its international subsidiaries. Several jurisdictions have passed laws in this area, and additional jurisdictions are considering imposing additional restrictions or have laws that are pending. For example, China has regulatory requirements relating to data processing and localization that govern the Company’s ability to collect, use, and transfer data in China, and could limit the Company’s ability to transfer data outside of China. These laws continue to develop and may be inconsistent from jurisdiction to jurisdiction. Complying with emerging and changing requirements causes the Company to incur substantial costs and has required and may in the future require the Company to change its business practices, including changes to the design of the Company’s products and services and limiting the Company’s ability to offer a product, service or feature to customers. Such changes in business practices can also otherwise adversely affect the experience for users of the Company’s products and services, and result in harm to the Company’s reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and services, lower revenue, and lower profit margins. Noncompliance could result in suspension or revocation of business licenses, significant penalties and legal liability.

The current filing adds a new risk factor about increasing data privacy laws, including China's data localization requirements, and the potential costs and business changes required for compliance. This is a new disclosure not present in the baseline.

Added online safety and age verification 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. Failure to comply with such changing laws, regulations and other legal obligations can also result in significant penalties and fines, and legal liability.

The current filing adds a new risk factor about online safety laws, including enhanced protections for minors and mandatory age verification, and the associated compliance costs and risks. This is a new disclosure not present in the baseline.

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