What changed in this filing

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Item 1. Financial Statements

2025-05-02 compared with 2025-01-31 · 70 added, 51 removed, 307 unchanged (28% of the section changed)

2 unchanged sentences

(In millions, except number of shares, which are reflected in thousands, and per-share amounts)

Three Months Ended

2024 December 30,

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Products $ 68,714 $ 66,886 $ 166,674 $ 163,344

25 unchanged sentences

(In millions)

Three Months Ended

2024 December 30,

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Net income $ 24,780 $ 23,636 $ 61,110 $ 57,552

57 unchanged sentences

(In millions, except per-share amounts)

Three Months Ended

2024 December 30,

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Total shareholders’ equity, beginning balances $ 66,758 $ 74,100 $ 56,950 $ 62,146

1 unchanged sentence

Beginning balances 84,768 75,236 83,276 73,812

Common stock issued 825 752 825 752

Common stock withheld related to net share settlement of equity awards ( 206 ) ( 222 ) ( 2,097 ) ( 1,882 )

18 unchanged sentences

(In millions)

Three Months Ended

2024 December 30,

Six Months Ended

2025 March 30,

Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances

29 unchanged sentences

Cash used in financing activities ( 68,377 ) ( 61,018 )

Increase in cash, cash equivalents, and restricted cash and cash equivalents 356 11,237

Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents ( 1,781 ) 3,184

Cash, cash equivalents, and restricted cash and cash equivalents, ending balances

18 unchanged sentences

Note 2 – Revenue

Net sales disaggregated by significant products and services for the three months ended December 28, 2024 and December 30, 2023 were as follows (in millions):

Three Months Ended

2024 December 30,

The following table shows disaggregated net sales, as well as the portion of total net sales that was previously deferred, for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (in millions):

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

$ 46,841 $ 45,963 $ 115,979 $ 115,665

7,949 7,451 16,936 15,231

6,402 5,559 14,490 12,582

Wearables, Home and Accessories 7,522 7,913 19,269 19,866

1 unchanged sentence

Total net sales $ 95,359 $ 90,753 $ 219,659 $ 210,328

Total net sales include $ 3.7 billion of revenue recognized in the three months ended December 28, 2024 that was included in deferred revenue as of September 28, 2024 and $ 3.5 billion of revenue recognized in the three months ended December 30, 2023 that was included in deferred revenue as of September 30, 2023.

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information and Geographic Data” for the three months ended December 28, 2024 and December 30, 2023, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of December 28, 2024 and September 28, 2024, the Company had total deferred revenue of $ 13.2 billion and $ 12.8 billion, respectively.

As of December 28, 2024, the Company expects 64 % of total deferred revenue to be realized in less than a year, 25 % within one-to-two years, 9 % within two-to-three years and 2 % in greater than three years.

Portion of total net sales that was included in deferred revenue as of the beginning of the period

$ 3,672 $ 3,282 $ 5,440 $ 5,135

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information and Geographic Data” for the three- and six-month periods ended March 29, 2025 and March 30, 2024, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of March 29, 2025 and September 28, 2024, the Company had total deferred revenue of $ 13.6 billion and $ 12.8 billion, respectively.

As of March 29, 2025, the Company expects 66 % of total deferred revenue to be realized in less than a year, 24 % within one-to-two years, 9 % within two-to-three years and 1 % in greater than three years.

| Q2 2025 Form 10-Q | 6

Note 3 – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the three months ended December 28, 2024 and December 30, 2023 (net income in millions and shares in thousands):

Three Months Ended

2024 December 30,

The following table shows the computation of basic and diluted earnings per share for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (net income in millions and shares in thousands):

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Net income $ 24,780 $ 23,636 $ 61,110 $ 57,552

7 unchanged sentences

Cash, Cash Equivalents and Marketable Securities

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 28, 2024 and September 28, 2024 (in millions):

December 28, 2024

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of March 29, 2025 and September 28, 2024 (in millions):

March 29, 2025

Cost Unrealized

41 unchanged sentences

(1) The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

(2) As of December 28, 2024 and September 28, 2024, cash and cash equivalents included $ 126 million and $ 2.6 billion, respectively, held in escrow and restricted from general use.

These restricted cash and cash equivalents are designated to settle the Company’s obligation related to the 2016 European Commission (the “Commission”) decision that Ireland granted state aid to the Company (the “State Aid Decision”), which was confirmed during the fourth quarter of 2024 by the European Court of Justice in a reversal of the 2020 judgment of the European General Court.

(3) As of December 28, 2024 and September 28, 2024, current marketable securities included $ 3.3 billion and $ 13.2 billion, respectively, held in escrow and restricted from general use.

These restricted marketable securities are designated to settle the Company’s obligation related to the State Aid Decision.

As of December 28, 2024, 85 % of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 11 % between 5 and 10 years, and 4 % greater than 10 years.

As of December 28, 2024, 13 % of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 10 % between 5 and 10 years, and 77 % greater than 10 years.

(2) As of September 28, 2024, cash and cash equivalents included $ 2.6 billion held in escrow and restricted from general use.

These restricted cash and cash equivalents were designated to settle the Company’s obligation related to the 2016 European Commission (the “Commission”) decision that Ireland granted state aid to the Company (the “State Aid Decision”), which was confirmed during the fourth quarter of 2024 by the European Court of Justice in a reversal of the 2020 judgment of the European General Court.

(3) As of September 28, 2024, current marketable securities included $ 13.2 billion held in escrow and restricted from general use.

These restricted marketable securities were designated to settle the Company’s obligation related to the State Aid Decision.

As of March 29, 2025, 83 % of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 13 % between 5 and 10 years, and 4 % greater than 10 years.

As of March 29, 2025, 13 % of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 10 % between 5 and 10 years, and 77 % greater than 10 years.

Derivative Instruments and Hedging

7 unchanged sentences

The Company designates these instruments as either cash flow or fair value hedges.

As of December 28, 2024, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 18 years.

As of March 29, 2025, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 17 years.

The Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.

3 unchanged sentences

The Company designates these instruments as either cash flow or fair value hedges.

The notional amounts of the Company’s outstanding derivative instruments as of December 28, 2024 and September 28, 2024 were as follows (in millions):

The notional amounts of the Company’s outstanding derivative instruments as of March 29, 2025 and September 28, 2024 were as follows (in millions):

2025 September 28,

4 unchanged sentences

Foreign exchange contracts $ 68,388 $ 91,493

As of December 28, 2024 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $ 13.3 billion and $ 13.5 billion, respectively.

As of March 29, 2025 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $ 13.4 billion and $ 13.5 billion, respectively.

Accounts Receivable

Trade Receivables

As of December 28, 2024, the Company had two customers that individually represented 10% or more of total trade receivables, which accounted for 18 % and 11 %.

The Company’s third-party cellular network carriers accounted for 33 % and 38 % of total trade receivables as of December 28, 2024 and September 28, 2024, respectively.

The Company’s third-party cellular network carriers accounted for 37 % and 38 % of total trade receivables as of March 29, 2025 and September 28, 2024, respectively.

The Company requires third-party credit support or collateral from certain customers to limit credit risk.

4 unchanged sentences

Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company.

As of December 28, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted f or 43 % and 24 % .

As of March 29, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted f or 49 % and 19 % .

A s of September 28, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 44 % and 23 %.

Note 5 – Condensed Consolidated Financial Statement Details

The following tables show the Company’s condensed consolidated financial statement details as of December 28, 2024 and September 28, 2024 (in millions):

The following tables show the Company’s condensed consolidated financial statement details as of March 29, 2025 and September 28, 2024 (in millions):

2025 September 28,

14 unchanged sentences

The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases.

As of December 28, 2024 and September 28, 2024, the Company had $ 2.0 billion and $ 10.0 billion of commercial paper outstanding, respectively.

As of December 28, 2024 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $ 94.8 billion and $ 96.7 billion, respectively (collectively the “Notes”).

As of December 28, 2024 and September 28, 2024, the fair value of the Company’s Notes, based on Level 2 inputs, was $ 82.7 billion and $ 88.4 billion, respectively.

As of March 29, 2025 and September 28, 2024, the Company had $ 6.0 billion and $ 10.0 billion of commercial paper outstanding, respectively.

As of March 29, 2025 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $ 92.2 billion and $ 96.7 billion, respectively (collectively the “Notes”).

As of March 29, 2025 and September 28, 2024, the fair value of the Company’s Notes, based on Level 2 inputs, was $ 80.9 billion and $ 88.4 billion, respectively.

Note 7 – Shareholders’ Equity

Share Repurchase Program

During the three months ended December 28, 2024, the Company repurchased 100 million shares of its common stock for $ 23.3 billion.

During the six months ended March 29, 2025, the Company repurchased 208 million shares of its common stock for $ 48.3 billion.

The Company’s share repurchase program does not obligate the Company to acquire a minimum amount of shares.

2 unchanged sentences

Restricted Stock Units

A summary of the Company’s RSU activity and related information for the three months ended December 28, 2024 is as follows:

A summary of the Company’s RSU activity and related information for the six months ended March 29, 2025 is as follows:

(in thousands)

6 unchanged sentences

RSUs canceled ( 4,181 ) $ 177.54

Balance as of December 28, 2024 186,756 $ 183.49

The total vesting-date fair value of RSUs was $ 8.4 billion and $ 7.7 billion for the three months ended December 28, 2024 and December 30, 2023, respectively.

Balance as of March 29, 2025 183,346 $ 184.38

The total vesting-date fair value of RSUs was $ 906 million and $ 9.3 billion for the three- and six-month periods ended March 29, 2025, respectively, and was $ 821 million and $ 8.6 billion for the three- and six-month periods ended March 30, 2024, respectively.

Share-Based Compensation

The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three months ended December 28, 2024 and December 30, 2023 (in millions):

Three Months Ended

2024 December 30,

The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (in millions):

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Share-based compensation expense $ 3,226 $ 2,964 $ 6,512 $ 5,961

Income tax benefit related to share-based compensation expense $ ( 743 ) $ ( 663 ) $ ( 2,075 ) $ ( 1,898 )

As of December 28, 2024, the total unrecognized compensation cost related to outstanding RSUs was $ 29.2 billion, which the Company expects to recognize over a weighted-average period of 2.9 years.

As of March 29, 2025, the total unrecognized compensation cost related to outstanding RSUs was $ 26.3 billion, which the Company expects to recognize over a weighted-average period of 2.7 years.

| Q2 2025 Form 10-Q | 10

4 unchanged sentences

Note 10 – Segment Information and Geographic Data

The following table shows information by reportable segment for the three months ended December 28, 2024 and December 30, 2023 (in millions):

Three Months Ended

2024 December 30,

The following table shows information by reportable segment for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (in millions):

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Net sales $ 40,315 $ 37,273 $ 92,963 $ 87,703

10 unchanged sentences

Operating income $ 2,986 $ 2,806 $ 7,570 $ 7,385

A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 28, 2024 and December 30, 2023 is as follows (in millions):

Three Months Ended

2024 December 30,

A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 29, 2025 and March 30, 2024 is as follows (in millions):

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Segment operating income $ 40,136 $ 37,706 $ 93,310 $ 87,794

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements