How did Apple's revenue and earnings compare with the prior-year quarter?

Revenue rose 4% to $124.3 billion from $119.6 billion, and diluted EPS rose 10% to $2.40 from $2.18. Net income grew 7% to $36.3 billion. Growth in EPS outpaced revenue because of higher gross margin and a lower share count, with diluted shares falling to about 15.15 billion from 15.58 billion.

Is Services growth strong enough to offset weakness in Products?

Services grew 14% to $26.3 billion and carries a much higher gross margin than hardware, so it contributed disproportionately to profit growth. Products grew only about 2% to $98.0 billion, and iPhone sales were slightly down, so hardware remains the bulk of revenue. Services accounted for about 21% of revenue but roughly one-third of gross margin in the quarter.

Why did operating cash flow decline so sharply?

Cash generated by operations fell 25% to $29.9 billion from $39.9 billion. The main driver was cash paid for income taxes, which rose to $18.7 billion from $7.3 billion, along with a $12.0 billion outflow from other current and non-current liabilities compared with a $3.9 billion outflow a year earlier. The filing does not explain the tax payment timing, so investors should review the 10-Q for details.

How much did Apple return to shareholders and how is its balance sheet positioned?

Apple returned about $27.5 billion in cash through buybacks ($23.6 billion) and dividends ($3.9 billion), and about $30 billion including tax payments on net share settlement. Total cash and marketable securities declined to about $141 billion from about $157 billion, while total debt (commercial paper plus term debt) fell to about $96.8 billion from $106.6 billion, mainly through repayment of commercial paper.

What should investors watch regarding Greater China and the dividend?

Greater China revenue fell about 11% to $18.5 billion, a key risk given its importance to iPhone demand and manufacturing exposure, so investors should monitor future regional trends. The board declared a $0.25 per share cash dividend, payable February 13, 2025, to shareholders of record on February 10, 2025. The dividend amount is a routine quarterly payment and was not changed in this release.

AAPL 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 30, 2025. Cited figures are marked; the original filing is the authoritative source.

Apple reported fiscal Q1 2025 (quarter ended December 28, 2024) revenue of $124.3 billion^a, up 4% year over year, and diluted EPS of $2.40, up 10%.

Management described the quarter as the company's best ever for total revenue and EPS. Net income rose 7% to $36.3 billion^b, and gross margin widened to about 46.9% from 45.9%, driven by mix shift toward Services. Services revenue reached an all-time high of $26.3 billion, up 14%, while Products grew only about 2% to $98.0 billion.

The quarter's weak spots were Greater China, where sales fell about 11% to $18.5 billion, and iPhone, which declined slightly to $69.1 billion^c. Operating cash flow fell 25% to $29.9 billion, mainly because cash paid for income taxes rose to $18.7 billion from $7.3 billion and other liabilities declined sharply.

Apple also returned over $30 billion^d to shareholders, including $23.6 billion in buybacks and $3.9 billion in dividends, and reduced total debt and commercial paper. Investors will likely focus on whether Services growth and margin expansion can offset the China weakness and the cash flow decline.

02—Key points

Key Highlights

Total revenue of $124.3B, up 4% YoY (from $119.6B), described by management as the best quarter ever
Diluted EPS of $2.40, up 10% YoY (from $2.18), a new all-time record; net income rose 7% to $36.3B
Services revenue hit an all-time high of $26.3B, up 14% YoY, and Services gross margin was about $19.8B (roughly 75%)
Gross margin improved to about 46.9% from 45.9%, and operating income rose 6% to $42.8B
Greater China revenue fell about 11% to $18.5B, and iPhone revenue slipped about 1% to $69.1B
Operating cash flow fell 25% to $29.9B, largely due to $18.7B in cash taxes paid (vs. $7.3B) and lower other liabilities
Shareholder returns exceeded $30B, including $23.6B in buybacks and $3.9B in dividends; quarterly dividend declared at $0.25 per share, payable February 13, 2025

03—Questions

Frequently Asked Questions

How did Apple's revenue and earnings compare with the prior-year quarter?
Revenue rose 4% to $124.3 billion from $119.6 billion, and diluted EPS rose 10% to $2.40 from $2.18. Net income grew 7% to $36.3 billion. Growth in EPS outpaced revenue because of higher gross margin and a lower share count, with diluted shares falling to about 15.15 billion from 15.58 billion.
Is Services growth strong enough to offset weakness in Products?
Services grew 14% to $26.3 billion and carries a much higher gross margin than hardware, so it contributed disproportionately to profit growth. Products grew only about 2% to $98.0 billion, and iPhone sales were slightly down, so hardware remains the bulk of revenue. Services accounted for about 21% of revenue but roughly one-third of gross margin in the quarter.
Why did operating cash flow decline so sharply?
Cash generated by operations fell 25% to $29.9 billion from $39.9 billion. The main driver was cash paid for income taxes, which rose to $18.7 billion from $7.3 billion, along with a $12.0 billion outflow from other current and non-current liabilities compared with a $3.9 billion outflow a year earlier. The filing does not explain the tax payment timing, so investors should review the 10-Q for details.
How much did Apple return to shareholders and how is its balance sheet positioned?
Apple returned about $27.5 billion in cash through buybacks ($23.6 billion) and dividends ($3.9 billion), and about $30 billion including tax payments on net share settlement. Total cash and marketable securities declined to about $141 billion from about $157 billion, while total debt (commercial paper plus term debt) fell to about $96.8 billion from $106.6 billion, mainly through repayment of commercial paper.
What should investors watch regarding Greater China and the dividend?
Greater China revenue fell about 11% to $18.5 billion, a key risk given its importance to iPhone demand and manufacturing exposure, so investors should monitor future regional trends. The board declared a $0.25 per share cash dividend, payable February 13, 2025, to shareholders of record on February 10, 2025. The dividend amount is a routine quarterly payment and was not changed in this release.

04—Continue

← View all 8-K filings