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Apple Inc.

For the period ended Mar 28, 2026. Filed May 1, 2026.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 28, 2026 · Filed May 1, 2026

AAPL$348.51-0.6%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Item 1. Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and per-share amounts)

Three Months EndedSix Months Ended
March 28,2026March 29,2025March 28,2026March 29,2025
Net sales:
Products$80,208$68,714$193,951$166,674
Services30,97626,64560,98952,985
Total net sales111,18495,359254,940219,659
Cost of sales:
Products49,17944,030116,657103,477
Services7,2246,46214,27113,040
Total cost of sales56,40350,492130,928116,517
Gross margin54,78144,867124,012103,142
Operating expenses:
Research and development11,4198,55022,30616,818
Selling, general and administrative7,4776,72814,96913,903
Total operating expenses18,89615,27837,27530,721
Operating income35,88529,58986,73772,421
Other income/(expense), net(52)(279)98(527)
Income before provision for income taxes35,83329,31086,83571,894
Provision for income taxes6,2554,53015,16010,784
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:
Basic14,673,27814,994,08214,710,71815,037,903
Diluted14,725,87315,056,13314,768,11515,103,499

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In millions)

Three Months EndedSix Months Ended
March 28,2026March 29,2025March 28,2026March 29,2025
Net income$29,578$24,780$71,675$61,110
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax6790(92)(535)
Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivative instruments162(318)3731,333
Adjustment for net (gains)/losses realized and included in net income44(628)281156
Total change in unrealized gains/losses on derivative instruments206(946)6541,489
Change in unrealized gains/losses on marketable debt securities, net of tax:
Change in fair value of marketable debt securities(808)1,097(384)(550)
Adjustment for net (gains)/losses realized and included in net income1418518405
Total change in unrealized gains/losses on marketable debt securities(794)1,282(366)(145)
Total other comprehensive income/(loss)(521)426196809
Total comprehensive income$29,057$25,206$71,871$61,919

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

March 28,2026September 27,2025
ASSETS:
Current assets:
Cash and cash equivalents$45,572$35,934
Marketable securities22,93518,763
Accounts receivable, net30,33939,777
Vendor non-trade receivables23,17233,180
Inventories6,7475,718
Other current assets15,34914,585
Total current assets144,114147,957
Non-current assets:
Marketable securities78,08877,723
Property, plant and equipment, net50,11649,834
Intangible assets, net21,33411,093
Other non-current assets77,43072,634
Total non-current assets226,968211,284
Total assets$371,082$359,241
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable$57,349$69,860
Other current liabilities57,65466,387
Deferred revenue9,3319,055
Commercial paper1,9977,979
Term debt8,31012,350
Total current liabilities134,641165,631
Non-current liabilities:
Term debt74,40478,328
Other non-current liabilities55,54641,549
Total non-current liabilities129,950119,877
Total liabilities264,591285,508
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, respectively99,50793,568
Retained earnings/(Accumulated deficit)12,359(14,264)
Accumulated other comprehensive loss(5,375)(5,571)
Total shareholders’ equity106,49173,733
Total liabilities and shareholders’ equity$371,082$359,241

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

(In millions, except per-share amounts)

Three Months EndedSix Months Ended
March 28,2026March 29,2025March 28,2026March 29,2025
Total shareholders’ equity, beginning balances$88,190$66,758$73,733$56,950
Common stock and additional paid-in capital:
Beginning balances95,22184,76893,56883,276
Common stock issued878825878825
Common stock withheld related to net share settlement of equity awards(250)(206)(2,308)(2,097)
Share-based compensation3,6583,3247,3696,707
Ending balances99,50788,71199,50788,711
Retained earnings/(Accumulated deficit):
Beginning balances(2,177)(11,221)(14,264)(19,154)
Net income29,57824,78071,67561,110
Dividends and dividend equivalents declared(3,855)(3,794)(7,735)(7,613)
Common stock withheld related to net share settlement of equity awards(88)(85)(1,024)(1,187)
Common stock repurchased(11,099)(25,232)(36,293)(48,708)
Ending balances12,359(15,552)12,359(15,552)
Accumulated other comprehensive loss:
Beginning balances(4,854)(6,789)(5,571)(7,172)
Other comprehensive income/(loss)(521)426196809
Ending balances(5,375)(6,363)(5,375)(6,363)
Total shareholders’ equity, ending balances$106,491$66,796$106,491$66,796
Dividends and dividend equivalents declared per share or RSU$0.26$0.25$0.52$0.50

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Six Months Ended
March 28,2026March 29,2025
Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances$35,934$29,943
Operating activities:
Net income71,67561,110
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization6,6535,741
Share-based compensation expense7,1226,512
Other(1,717)(2,217)
Changes in operating assets and liabilities:
Accounts receivable, net9,2957,266
Vendor non-trade receivables10,0089,171
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 liabilities7,301(15,579)
Cash generated by operating activities82,62753,887
Investing activities:
Purchases of marketable securities(32,432)(12,442)
Proceeds from maturities of marketable securities18,69126,587
Proceeds from sales of marketable securities8,6155,210
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 equivalents9,638(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

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1 –Summary of Significant Accounting Policies

Basis of Presentation and Preparation

The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 27, 2025 (the “2025 Form 10-K”).

The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2026 and 2025 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

Note 2 –Revenue

The following table shows disaggregated net sales, as well as the portion of total net sales that was previously deferred, for the three- and six-month periods ended March 28, 2026 and March 29, 2025 (in millions):

Three Months EndedSix Months Ended
March 28,2026March 29,2025March 28,2026March 29,2025
iPhone®$56,994$46,841$142,263$115,979
Mac®8,3997,94916,78516,936
iPad®6,9146,40215,50914,490
Wearables, Home and Accessories7,9017,52219,39419,269
Services30,97626,64560,98952,985
Total net sales$111,184$95,359$254,940$219,659
Portion of total net sales that was included in deferred revenue as of the beginning of the period$3,987$3,672$5,834$5,440

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information” for the three- and six-month periods ended March 28, 2026 and March 29, 2025, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of March 28, 2026 and September 27, 2025, the Company had total deferred revenue of $14.7 billion and $13.7 billion, respectively. As of March 28, 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.

Note 3 –Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the three- and six-month periods ended March 28, 2026 and March 29, 2025 (net income in millions and shares in thousands):

Three Months EndedSix Months Ended
March 28,2026March 29,2025March 28,2026March 29,2025
Numerator:
Net income$29,578$24,780$71,675$61,110
Denominator:
Weighted-average basic shares outstanding14,673,27814,994,08214,710,71815,037,903
Effect of dilutive share-based awards52,59562,05157,39765,596
Weighted-average diluted shares14,725,87315,056,13314,768,11515,103,499
Basic earnings per share$2.02$1.65$4.87$4.06
Diluted earnings per share$2.01$1.65$4.85$4.05

Note 4 –Financial Instruments

Cash, Cash Equivalents and Marketable Securities

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of March 28, 2026 and September 27, 2025 (in millions):

March 28, 2026
AdjustedCostUnrealizedGainsUnrealizedLossesFairValueCash andCashEquivalentsCurrentMarketableSecuritiesNon-CurrentMarketableSecurities
Cash$29,740$—$—$29,740$29,740$—$—
Level 1:
Money market funds6,588——6,5886,588——
Mutual funds821128(14)935—935—
Subtotal7,409128(14)7,5236,588935—
Level 2 (1):
U.S. Treasury securities18,65014(254)18,4102,9354,17411,301
U.S. agency securities7,483—(112)7,3712,9232,4701,978
Non-U.S. government securities5,90645(493)5,458—5764,882
Certificates of deposit and time deposits3,263——3,2632,987276—
Commercial paper3,628——3,6283993,229—
Corporate debt securities48,11183(982)47,212—11,04236,170
Municipal securities122—(1)121—9526
Mortgage- and asset-backed securities25,10664(1,301)23,869—13823,731
Subtotal112,269206(3,143)109,3329,24422,00078,088
Total$149,418$334$(3,157)$146,595$45,572$22,935$78,088
September 27, 2025
AdjustedCostUnrealizedGainsUnrealizedLossesFairValueCash andCashEquivalentsCurrentMarketableSecuritiesNon-CurrentMarketableSecurities
Cash$28,267$—$—$28,267$28,267$—$—
Level 1:
Money market funds5,272——5,2725,272——
Mutual funds679177(2)854—854—
Subtotal5,951177(2)6,1265,272854—
Level 2 (1):
U.S. Treasury securities16,07456(282)15,8481,1903,71210,946
U.S. agency securities5,269—(149)5,1202512,4562,413
Non-U.S. government securities6,586111(424)6,273—8555,418
Certificates of deposit and time deposits917——917904—13
Commercial paper100——1005050—
Corporate debt securities47,210266(916)46,560—10,62335,937
Municipal securities207—(2)205—11986
Mortgage- and asset-backed securities24,130126(1,252)23,004—9422,910
Subtotal100,493559(3,025)98,0272,39517,90977,723
Total$134,711$736$(3,027)$132,420$35,934$18,763$77,723

(1)The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

As of March 28, 2026,79% of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years,17% between 5 and 10 years, and 4% greater than 10 years. As of March 28, 2026,13% of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years,22% between 5 and 10 years, and 65% greater than 10 years.

Derivative Instruments and Hedging

The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates.

Foreign Exchange Rate Risk

To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months.

To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of March 28, 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 Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.

Interest Rate Risk

To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges.

The notional amounts of the Company’s outstanding derivative instruments as of March 28, 2026 and September 27, 2025, were as follows (in millions):

March 28,2026September 27,2025
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

As of March 28, 2026 and September 27, 2025, the carrying amount of the Company’scurrent and non-current term debt subject to fair value hedges was $10.4 billion and $12.6 billion, respectively.

Accounts Receivable

Trade Receivables

As of both March 28, 2026 and September 27, 2025, the Company hadone 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 Company requires third-party credit support or collateral from certain customers to limit credit risk.

Vendor Non-Trade Receivables

The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of March 28, 2026, the Company hadtwo 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 hadtwo vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 46% and 23%.

Note 5 –Condensed Consolidated Financial Statement Details

The following tables show the Company’s condensed consolidated financial statement details as of March 28, 2026 and September 27, 2025 (in millions):

Property, Plant and Equipment, Net

March 28,2026September 27,2025
Gross property, plant and equipment$127,557$125,848
Accumulated depreciation(77,441)(76,014)
Total property, plant and equipment, net$50,116$49,834

Intangible Assets, Net

March 28,2026September 27,2025
Gross intangible assets$37,767$24,950
Accumulated amortization(11,970)(11,649)
Total intangible assets, net25,79713,301
Less: Current portion of intangible assets, net(4,463)(2,208)
Non-current portion of intangible assets, net$21,334$11,093

Note 6 –Debt

Commercial Paper

The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of March 28, 2026 and September 27, 2025, the Company had $2.0 billion and $8.0 billion of commercial paper outstanding, respectively. The following table provides a summary of cash flows associated with commercial paper for the six months ended March 28, 2026 and March 29, 2025 (in millions):

Six Months Ended
March 28,2026March 29,2025
Maturities 90 days or less:
Repayments of commercial paper, net$(2,123)$(3,968)
Maturities greater than 90 days:
Repayments of commercial paper(3,788)—
Total repayments of commercial paper, net$(5,911)$(3,968)

Term Debt

As of March 28, 2026 and September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $82.7 billion and $90.7 billion, respectively (collectively the “Notes”). As of March 28, 2026 and September 27, 2025, the fair value of the Company’s Notes, based on Level 2 inputs, was $70.8 billion and $80.4 billion, respectively.

Note 7 –Shareholders’ Equity

Share Repurchase Program

During the six months ended March 28, 2026, the Company repurchased 135 million shares of its common stock for $36.0 billion. The Company’s share repurchase program does not obligate the Company to acquire a minimum amount of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“Exchange Act”).

Note 8 –Share-Based Compensation

Restricted Stock Units

A summary of the Company’s restricted stock unit (“RSU”) activity and related information for the six months ended March 28, 2026, is as follows:

Number ofRSUs(in thousands)Weighted-AverageGrant-Date FairValue Per RSU
Balance as of September 27, 2025151,574$189.75
RSUs granted66,083$256.04
RSUs vested(37,502)$174.38
RSUs forfeited(6,170)$210.31
Balance as of March 28, 2026173,985$217.51

The total vesting-date fair value of RSUs was $917 million and $906 million for the three months ended March 28, 2026 and March 29, 2025, respectively, and was $9.5 billion and $9.3 billion for the six months ended March 28, 2026 and March 29, 2025, respectively.

Share-Based Compensation

The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 28, 2026 and March 29, 2025 (in millions):

Three Months EndedSix Months Ended
March 28,2026March 29,2025March 28,2026March 29,2025
Share-based compensation expense$3,528$3,226$7,122$6,512
Income tax benefit related to share-based compensation expense$(802)$(743)$(2,095)$(2,075)

As of March 28, 2026, the total unrecognized compensation cost related to outstanding RSUs was $28.8 billion, which the Company expects to recognize over a weighted-average period of 2.8 years.

Note 9 –Commitments and Contingencies

Unconditional Purchase Obligations

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):

2026 (remaining six months)$2,994
20277,343
20286,130
20295,394
20305,281
Thereafter549
Total$27,691

Contingencies

The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims.

Note 10 –Segment Information

The following tables show information byreportable segment for the three- and six-month periods ended March 28, 2026 and March 29, 2025 (in millions):

Three Months Ended March 28, 2026
AmericasEuropeGreaterChinaJapanRest ofAsia PacificCorporateTotal
Net sales$45,093$28,055$20,497$8,401$9,138$—$111,184
Cost of sales(23,114)(13,756)(10,633)(4,267)(4,633)—(56,403)
Research and development—————(11,419)(11,419)
Selling and marketing(2,606)(1,247)(675)(295)(378)—(5,201)
General and administrative—————(2,276)(2,276)
Operating income/(loss)$19,373$13,052$9,189$3,839$4,127$(13,695)$35,885
Three Months Ended March 29, 2025
AmericasEuropeGreaterChinaJapanRest ofAsia PacificCorporateTotal
Net sales$40,315$24,454$16,002$7,298$7,290$—$95,359
Cost of sales(21,094)(13,025)(8,794)(3,610)(3,969)—(50,492)
Research and development—————(8,550)(8,550)
Selling and marketing(2,447)(1,113)(582)(254)(335)—(4,731)
General and administrative—————(1,997)(1,997)
Operating income/(loss)$16,774$10,316$6,626$3,434$2,986$(10,547)$29,589
Six Months Ended March 28, 2026
AmericasEuropeGreaterChinaJapanRest ofAsia PacificCorporateTotal
Net sales$103,622$66,201$46,023$17,814$21,280$—$254,940
Cost of sales(54,963)(32,817)(23,663)(8,778)(10,707)—(130,928)
Research and development—————(22,306)(22,306)
Selling and marketing(5,333)(2,542)(1,379)(584)(760)—(10,598)
General and administrative—————(4,371)(4,371)
Operating income/(loss)$43,326$30,842$20,981$8,452$9,813$(26,677)$86,737
Six Months Ended March 29, 2025
AmericasEuropeGreaterChinaJapanRest ofAsia PacificCorporateTotal
Net sales$92,963$58,315$34,515$16,285$17,581$—$219,659
Cost of sales(49,589)(31,068)(18,553)(8,003)(9,304)—(116,517)
Research and development—————(16,818)(16,818)
Selling and marketing(5,091)(2,324)(1,176)(534)(707)—(9,832)
General and administrative—————(4,071)(4,071)
Operating income/(loss)$38,283$24,923$14,786$7,748$7,570$(20,889)$72,421
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.