How did Apple's Services business perform in the quarter?

Services revenue reached an all-time high of $26.6 billion, up about 12% from $23.9 billion a year earlier. Services cost of sales grew more slowly, supporting a gross margin of roughly 76%, which is a key driver of Apple's overall margin profile.

Why did operating cash flow decline in the first half of fiscal 2025?

Six-month operating cash flow fell to $53.9 billion from $62.6 billion. The main factors were a $15.6 billion outflow from other current and non-current liabilities (versus $3.4 billion a year earlier) and a sharp increase in cash taxes paid to $31.7 billion from $14.5 billion, partly offset by lower inventory and receivables build.

What does the new $100 billion buyback and dividend increase mean for shareholders?

The board raised the quarterly dividend 4% to $0.26 per share and authorized an additional $100 billion repurchase program. Together with the $49.5 billion of buybacks in the first half, this signals continued commitment to returning capital, though the pace of repurchases relative to cash generation and declining liquidity will be worth tracking.

Is Apple facing weakness in any key geographic market?

Greater China was the primary weak spot, with net sales down about 2% to $16.0 billion and a six-month decline of about 7%. Americas and Europe grew modestly, while Japan and Rest of Asia Pacific posted solid double-digit or high-single-digit gains.

AAPL 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.

Apple reported fiscal Q2 2025 results (quarter ended March 29, 2025) with total net sales of $95.4 billion^a, up 5% year over year from $90.8 billion, and diluted EPS of $1.65, up 8% from $1.53.

Services was the standout, reaching an all-time high of $26.6 billion^b, up roughly 12% year over year, with gross margin on Services at about 76% versus about 75% a year earlier. Products revenue rose about 3% to $68.7 billion, led by iPhone at $46.8 billion (up about 2%), while Mac, iPad, and Services grew and Wearables, Home and Accessories declined about 5%. Greater China was the notable weak spot, with sales down about 2% to $16.0 billion, while Japan and Rest of Asia Pacific grew strongly.

Profitability improved, with operating income of $29.6 billion^c (up 6%) and net income of $24.8 billion (up 5%). Operating cash flow for the six-month period was $53.9 billion, down from $62.6 billion, largely due to a $15.6 billion outflow in other current and non-current liabilities and $6.0 billion in capex. Cash paid for income taxes rose sharply to $31.7 billion from $14.5 billion, a significant drag on cash generation that investors should monitor.

Apple returned $29 billion^d to shareholders in the quarter, and the board raised the quarterly dividend 4% to $0.26 per share and authorized a new $100 billion repurchase program. Balance sheet liquidity declined, with total cash and marketable securities of roughly $133 billion at March 29, 2025, down from about $156 billion at fiscal year-end, while total term debt and commercial paper fell modestly.

Shareholders' equity increased to $66.8 billion from $57.0 billion, and the share count fell to 14.94 billion from 15.12 billion, reflecting continued buybacks. Management highlighted record installed base growth across all product categories and geographic segments.

02—Key points

Key Highlights

Total net sales rose 5% year over year to $95.4 billion, with Services reaching a record $26.6 billion (up about 12%).
Diluted EPS of $1.65 rose 8% year over year, and net income increased 5% to $24.8 billion.
Greater China revenue declined about 2% to $16.0 billion, while Japan grew about 17% and Rest of Asia Pacific grew about 8%.
Six-month operating cash flow fell to $53.9 billion from $62.6 billion, driven by lower liability balances and higher cash taxes paid ($31.7 billion vs. $14.5 billion).
The quarterly dividend was raised 4% to $0.26 per share, payable May 15, 2025 to holders of record on May 12, 2025.
A new $100 billion share repurchase authorization was approved, and $29 billion was returned to shareholders in the quarter.
Total cash and marketable securities declined to roughly $133 billion from about $156 billion at fiscal year-end 2024, while shareholders' equity rose to $66.8 billion.

03—Questions

Frequently Asked Questions

How did Apple's Services business perform in the quarter?
Services revenue reached an all-time high of $26.6 billion, up about 12% from $23.9 billion a year earlier. Services cost of sales grew more slowly, supporting a gross margin of roughly 76%, which is a key driver of Apple's overall margin profile.
Why did operating cash flow decline in the first half of fiscal 2025?
Six-month operating cash flow fell to $53.9 billion from $62.6 billion. The main factors were a $15.6 billion outflow from other current and non-current liabilities (versus $3.4 billion a year earlier) and a sharp increase in cash taxes paid to $31.7 billion from $14.5 billion, partly offset by lower inventory and receivables build.
What does the new $100 billion buyback and dividend increase mean for shareholders?
The board raised the quarterly dividend 4% to $0.26 per share and authorized an additional $100 billion repurchase program. Together with the $49.5 billion of buybacks in the first half, this signals continued commitment to returning capital, though the pace of repurchases relative to cash generation and declining liquidity will be worth tracking.
Is Apple facing weakness in any key geographic market?
Greater China was the primary weak spot, with net sales down about 2% to $16.0 billion and a six-month decline of about 7%. Americas and Europe grew modestly, while Japan and Rest of Asia Pacific posted solid double-digit or high-single-digit gains.

04—Continue

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