01—Abstract
Summary
Summary of the 10-K filed November 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Apple Inc.'s 2026 Form 10-K highlights a year of significant revenue growth, driven primarily by a strong performance in the iPhone segment, which saw a 21%a increase in net sales due to demand for Pro models.
Total net sales grew 15% year-over-year to $478.8 billionb. The Services segment also demonstrated robust growth, increasing by 13% to $123.3 billion, fueled by advertising and cloud services. Geographically, Greater China experienced the highest growth rate at 28%, indicating a strong market presence and recovery in that region.
The company continues to invest heavily in Research and Development, with expenses increasing by 32% to $45.8 billionc, signaling a commitment to innovation, particularly in artificial intelligence. Despite robust sales, the company faces ongoing challenges related to supply chain constraints, rising component costs for key items like semiconductors and memory, and increasing geopolitical and trade tensions that could impact future performance and margins. Financially, Apple maintained a strong liquidity position with $136.9 billion in cash, cash equivalents, and marketable securities.
The company continued its capital return program, repurchasing $85.8 billiond of its common stock and increasing its quarterly dividend to $0.27 per share. Significant legal and regulatory developments are noted, including ongoing investigations and fines related to the EU's Digital Markets Act and an antitrust lawsuit filed by the U.S. Department of Justice, which could present future financial and operational risks. The company's ability to navigate these regulatory landscapes and manage supply chain pressures will be crucial for sustained growth and profitability.
02—Key points
Key Highlights
- Total net sales increased by 15% to $478.8 billion in fiscal year 2026, primarily driven by a 21% surge in iPhone sales and a 13% rise in Services revenue.
- The Greater China region demonstrated exceptional growth, with net sales up 28%, indicating a strong market rebound or increased demand in the area.
- Research and Development expenses saw a significant increase of 32% to $45.8 billion, underscoring Apple's commitment to innovation, especially in Artificial Intelligence.
- The company continues to manage supply chain challenges, including industry-wide shortages and rising costs for key components like semiconductors and memory.
- Apple maintained a strong financial position with $136.9 billion in cash, cash equivalents, and marketable securities, supporting its significant capital return program including $85.8 billion in share repurchases and an increased quarterly dividend.
- Regulatory and legal challenges persist, notably the EU Digital Markets Act investigations and a U.S. antitrust lawsuit, posing potential risks to business operations and financial performance.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Apple kept $0.28.
- Revenue$478.83B100.0%
- Cost of revenue−$245.23B51.2%
- Gross profit$233.60B48.8%
- Operating costs−$75.54B15.8%
- Operating income$158.06B33.0%
- Interest, other & tax−$25.89B5.4%
- Net income$132.18B27.6%
Where FY2026 revenue went
$478.83B- Cost of revenue: $245.23B, 51% of revenue
- Net income: $132.18B, 28% of revenue
- R&D: $45.77B, 9.6% of revenue
- SG&A: $29.77B, 6.2% of revenue
- Interest, other & tax: $25.89B, 5.4% of revenue
Kept 28% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed November 3, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $478.83B$416.16B | +15.1% |
| Cost of Revenue | $245.23B$220.96B | +11.0% |
| Gross Profit | $233.60B$195.20B | +19.7% |
| R&D Expenses | $45.77B$34.55B | +32.5% |
| SG&A Expenses | $29.77B$27.60B | +7.9% |
| Operating Expenses | $75.54B$62.15B | +21.5% |
| Operating Income | $158.06B$133.05B | +18.8% |
| Net Income | $132.18B$112.01B | +18.0% |
| EPS (Basic) | $9.01$7.49 | +20.3% |
| EPS (Diluted) | $8.98$7.46 | +20.4% |
| Shares Outstanding (Basic) | 14.66B14.95B | −1.9% |
| Shares Outstanding (Diluted) | 14.72B15.00B | −1.9% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Apple's revenue growth in fiscal year 2026?
Apple's revenue growth in fiscal year 2026 was primarily driven by a substantial increase in iPhone sales, particularly the Pro models, which grew by 21%. The Services segment also contributed significantly with a 13% increase, benefiting from advertising and cloud services.
What are the key risks and challenges Apple highlighted in its 2026 Form 10-K?
Apple identified several key risks including ongoing supply chain constraints and rising component costs (especially for semiconductors and memory), intensifying competition, and geopolitical/trade tensions. Significant legal and regulatory challenges, such as EU Digital Markets Act investigations and antitrust lawsuits, were also highlighted as potential risks to business operations and financial performance.
How is Apple investing in future growth and innovation?
Apple significantly increased its investment in Research and Development (R&D) by 32% in fiscal year 2026, reaching $45.8 billion. This investment is particularly focused on developing new technologies, including artificial intelligence (AI) features and infrastructure, which are integrated across its products and services.
What is Apple's approach to returning capital to shareholders?
Apple continued its aggressive capital return program in fiscal year 2026, repurchasing $85.8 billion of its common stock and increasing its quarterly cash dividend to $0.27 per share. The company has authorized significant repurchase programs, demonstrating a commitment to shareholder returns.
06—Continue