Summary
Apple Inc. reported strong financial results for the third quarter of fiscal year 2018, with net sales increasing by 17% year-over-year to $53.3 billion. This growth was primarily driven by robust performance in iPhone, Services, and Other Products, alongside broad-based strength across all geographic segments. Diluted earnings per share also saw a significant increase to $2.34, up from $1.67 in the prior year's quarter. The company demonstrated effective cost management, with gross margin holding steady at 38.3% despite some product cost pressures, while operating expenses increased moderately to support continued innovation and growth. Operationally, Apple generated substantial cash flow from its operations, enabling significant returns to shareholders. The company repurchased $20.0 billion of its common stock during the quarter, completing its previous $210 billion program and initiating a new $100 billion repurchase program. Additionally, the quarterly dividend was increased to $0.73 per share. Apple's financial health remains strong, characterized by substantial cash reserves and a well-managed debt structure, positioning it for continued investment in R&D and strategic initiatives.
Financial Highlights
56 data points| Revenue | $53.27B |
| Cost of Revenue | $32.84B |
| Gross Profit | $20.42B |
| R&D Expenses | $3.70B |
| SG&A Expenses | $4.11B |
| Operating Expenses | $7.81B |
| Operating Income | $12.61B |
| Interest Expense | $846.00M |
| Net Income | $11.52B |
| EPS (Basic) | $0.59 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 19.53B |
| Shares Outstanding (Diluted) | 19.71B |
Key Highlights
- 1Net sales grew 17% year-over-year to $53.3 billion, driven by strong iPhone, Services, and Other Products performance.
- 2Diluted earnings per share increased to $2.34 from $1.67 in the prior year's quarter.
- 3Gross margin remained strong at 38.3%, with year-over-year improvements driven by higher Services sales and iPhone mix, partially offset by product cost increases.
- 4Operating income increased by 17% to $12.6 billion.
- 5The company returned $20.0 billion to shareholders through share repurchases, completing its previous program and announcing a new $100 billion program.
- 6Apple's Services segment continued its robust growth, with net sales up 31% to $9.5 billion.
- 7The company ended the quarter with $31.97 billion in cash and cash equivalents and $211.7 billion in total marketable securities.