10-QPeriod: Q3 FY2025

Apple Inc. Quarterly Report for Q3 Ended Jun 28, 2025

Filed August 1, 2025For Securities:AAPL

Summary

Apple Inc. reported strong financial results for the third quarter and nine months ended June 28, 2025, demonstrating robust top-line growth and improved profitability. Total net sales increased by 10% year-over-year in the third quarter to $94.0 billion, driven by significant growth in iPhone, Services, and Mac. For the nine-month period, total net sales grew 6% to $313.7 billion. Net income for the quarter rose to $23.4 billion, or $1.57 per diluted share, up from $21.4 billion, or $1.40 per diluted share, in the prior year period. The Services segment continues to be a strong performer, with net sales up 13% for both the quarter and year-to-date, highlighting its increasing contribution to overall revenue and profitability. The company also continued its aggressive capital return program, repurchasing $21.0 billion of stock and paying $3.9 billion in dividends during the quarter.

Financial Highlights

51 data points
Beta

Revenue

$94.04B

46.5% Gross Margin

Net Income

$23.43B

24.9% Net Margin

EPS (Diluted)

$1.57

Total Assets

$331.50B

Cash & Equivalents

$36.27B

Free Cash Flow

$24.41B

Financial Statements
Beta
Revenue$94.04B
Cost of Revenue$50.32B
Gross Profit$43.72B
R&D Expenses$8.87B
SG&A Expenses$6.65B
Operating Expenses$15.52B
Operating Income$28.20B
Net Income$23.43B
EPS (Basic)$1.57
EPS (Diluted)$1.57
Shares Outstanding (Basic)14.90B
Shares Outstanding (Diluted)14.95B

Key Highlights

  • 1Total net sales increased by 10% to $94.0 billion in Q3 2025 compared to $85.8 billion in Q3 2024, driven by broad-based growth.
  • 2iPhone sales saw a significant 13% increase year-over-year in Q3 2025, reaching $44.6 billion, indicating strong demand for Apple's flagship product.
  • 3The Services segment continued its impressive growth trajectory, with net sales up 13% to $27.4 billion in Q3 2025, further solidifying its role as a key profit driver.
  • 4Gross margin improved to 46.5% in Q3 2025 from 46.3% in Q3 2024, reflecting a favorable product mix and cost efficiencies, despite some impact from tariffs.
  • 5Net income grew to $23.4 billion in Q3 2025 from $21.4 billion in Q3 2024, demonstrating enhanced profitability.
  • 6Diluted earnings per share increased to $1.57 in Q3 2025 from $1.40 in Q3 2024.
  • 7Apple returned $24.9 billion to shareholders in Q3 2025 through $21.0 billion in share repurchases and $3.9 billion in dividends.

Frequently Asked Questions

Apple's total net sales increased by 10% to $94.0 billion in the third quarter ended June 28, 2025, compared to $85.8 billion in the same period of 2024. This growth was driven by a 13% increase in iPhone sales, a 13% increase in Services revenue, and a 15% increase in Mac sales.

The Services segment continues to be a strong growth engine for Apple, with net sales increasing by 13% to $27.4 billion in the third quarter of 2025 and by 13% to $80.4 billion for the first nine months of the year. This growth is primarily attributed to advertising, the App Store, and cloud services.

Apple continued its robust capital return program during the third quarter of 2025. The company repurchased $21.0 billion of its common stock and paid dividends and dividend equivalents totaling $3.9 billion, demonstrating a commitment to returning value to shareholders.

Yes, Apple is facing several significant legal and regulatory challenges. These include ongoing investigations and a €500 million fine from the EU regarding the Digital Markets Act, a civil antitrust lawsuit filed by the U.S. Department of Justice, and ongoing litigation with Epic Games concerning App Store policies, which recently resulted in a court finding of non-compliance with an injunction and referral for potential criminal contempt proceedings.