01—Abstract
Summary
Summary of the 10-Q filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb of stock and paying $3.9 billion in dividends during the quarter.
02—Key points
Key Highlights
- Total 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.
- iPhone sales saw a significant 13% increase year-over-year in Q3 2025, reaching $44.6 billion, indicating strong demand for Apple's flagship product.
- The 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.
- Gross 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.
- Net income grew to $23.4 billion in Q3 2025 from $21.4 billion in Q3 2024, demonstrating enhanced profitability.
- Diluted earnings per share increased to $1.57 in Q3 2025 from $1.40 in Q3 2024.
- Apple returned $24.9 billion to shareholders in Q3 2025 through $21.0 billion in share repurchases and $3.9 billion in dividends.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Apple Inc. kept $0.25.
- Revenue$94.04B100.0%
- Cost of revenue−$50.32B53.5%
- Gross profit$43.72B46.5%
- Operating costs−$15.52B16.5%
- Operating income$28.20B30.0%
- Interest, other & tax−$4.77B5.1%
- Net income$23.43B24.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed August 1, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $94.04B$85.78B | +9.6% |
| Cost of Revenue | $50.32B$46.10B | +9.2% |
| Gross Profit | $43.72B$39.68B | +10.2% |
| R&D Expenses | $8.87B$8.01B | +10.7% |
| SG&A Expenses | $6.65B$6.32B | +5.2% |
| Operating Expenses | $15.52B$14.33B | +8.3% |
| Operating Income | $28.20B$25.35B | +11.2% |
| Net Income | $23.43B$21.45B | +9.3% |
| EPS (Basic) | $1.57$1.40 | +12.1% |
| EPS (Diluted) | $1.57$1.40 | +12.1% |
| Shares Outstanding (Basic) | 14.90B15.29B | −2.5% |
| Shares Outstanding (Diluted) | 14.95B15.35B | −2.6% |
05—Questions
Frequently Asked Questions
How did Apple's revenue perform in the third quarter of 2025 compared to the prior year?
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.
What is the performance of Apple's Services segment?
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.
How is Apple managing its capital returns to shareholders?
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.
Are there any significant legal or regulatory challenges facing Apple?
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.
06—Continue