Summary
Apple Inc. reported strong financial results for the fiscal second quarter ended March 31, 2018, with total net sales reaching $61.1 billion, a 16% increase year-over-year. This growth was primarily driven by robust performance in iPhone sales, a significant rise in Services revenue, and contributions from Other Products. The company demonstrated solid operational execution, with operating income growing to $15.9 billion. Key financial metrics indicate continued profitability and healthy cash generation. Diluted earnings per share rose to $2.73, up from $2.10 in the prior year's quarter. The company continued its strong commitment to returning capital to shareholders, repurchasing $23.5 billion of its common stock and paying $3.2 billion in dividends during the quarter, underscoring confidence in its financial position and future prospects.
Financial Highlights
56 data points| Revenue | $61.14B |
| Cost of Revenue | $37.72B |
| Gross Profit | $23.42B |
| R&D Expenses | $3.38B |
| SG&A Expenses | $4.15B |
| Operating Expenses | $7.53B |
| Operating Income | $15.89B |
| Interest Expense | $792.00M |
| Net Income | $13.82B |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 20.10B |
| Shares Outstanding (Diluted) | 20.27B |
Key Highlights
- 1Net sales increased by 16% to $61.1 billion compared to the prior year's quarter, driven by higher sales of iPhone, Services, and Other Products.
- 2Gross margin percentage slightly decreased to 38.3% from 38.9% year-over-year, influenced by higher product cost structures, partially offset by a favorable product and Services mix.
- 3Operating income grew by 12.7% to $15.9 billion, reflecting strong revenue growth outpacing the increase in operating expenses.
- 4Diluted earnings per share (EPS) increased to $2.73 from $2.10 in the prior year's quarter, demonstrating improved profitability on a per-share basis.
- 5Services revenue continued its strong growth trajectory, increasing by 31% to $9.19 billion, highlighting the increasing importance of this segment to Apple's overall business.
- 6The company returned $26.8 billion to shareholders in the quarter through share repurchases ($23.5 billion) and dividends ($3.2 billion), signaling a continued focus on capital returns.
- 7Greater China region showed significant growth with net sales up 21% year-over-year, indicating strong market performance in a key geographic segment.