Apple Inc. 10-Q

Item 1. Financial Statements Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per-share amounts) Three Months Ended Six Months Ended March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 Net sales: Products $ 68,714 $ 66,886 $ 166,674 $ 163,344 Services 26,645 23,867 52,985 46,984 Total net sales 95,359 90,753 219,659 210,328 Cost of sales: Products 44,030 42,424 103,477 100,864 Services 6,462 6,058 13,040 12,338 Total cost of sales 50,492 48,482 116,517 113,202 Gross margin 44,867 42,271 103,142 97,126 Operating expenses: Research and development 8,550 7,903 16,818 15,599 Selling, general and administrative 6,728 6,468 13,903 13,254 Total operating expenses 15,278 14,371 30,721 28,853 Operating income 29,589 27,900 72,421 68,273 Other income/(expense), net ( 279 ) 158 ( 527 ) 108 Income before provision for income taxes 29,310 28,058 71,894 68,381 Provision for income taxes 4,530 4,422 10,784 10,829 Net income $ 24,780 $ 23,636 $ 61,110 $ 57,552 Earnings per share: Basic $ 1.65 $ 1.53 $ 4.06 $ 3.72 Diluted $ 1.65 $ 1.53 $ 4.05 $ 3.71 Shares used in computing earnings per share: Basic 14,994,082 15,405,856 15,037,903 15,457,810 Diluted 15,056,133 15,464,709 15,103,499 15,520,675 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2025 Form 10-Q | 1 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Three Months Ended Six Months Ended March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 Net income $ 24,780 $ 23,636 $ 61,110 $ 57,552 Other comprehensive income/(loss): Change in foreign currency translation, net of tax 90 ( 322 ) ( 535 ) ( 14 ) Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivative instruments ( 318 ) 456 1,333 ( 75 ) Adjustment for net (gains)/losses realized and included in net income ( 628 ) 232 156 ( 591 ) Total change in unrealized gains/losses on derivative instruments ( 946 ) 688 1,489 ( 666 ) Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities 1,097 ( 7 ) ( 550 ) 3,038 Adjustment for net (gains)/losses realized and included in net income 185 59 405 134 Total change in unrealized gains/losses on marketable debt securities 1,282 52 ( 145 ) 3,172 Total other comprehensive income 426 418 809 2,492 Total comprehensive income $ 25,206 $ 24,054 $ 61,919 $ 60,044 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2025 Form 10-Q | 2 Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and par value) March 29, 2025 September 28, 2024 ASSETS: Current assets: Cash and cash equivalents $ 28,162 $ 29,943 Marketable securities 20,336 35,228 Accounts receivable, net 26,136 33,410 Vendor non-trade receivables 23,662 32,833 Inventories 6,269 7,286 Other current assets 14,109 14,287 Total current assets 118,674 152,987 Non-current assets: Marketable securities 84,424 91,479 Property, plant and equipment, net 46,876 45,680 Other non-current assets 81,259 74,834 Total non-current assets 212,559 211,993 Total assets $ 331,233 $ 364,980 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 54,126 $ 68,960 Other current liabilities 61,849 78,304 Deferred revenue 8,976 8,249 Commercial paper 5,982 9,967 Term debt 13,638 10,912 Total current liabilities 144,571 176,392 Non-current liabilities: Term debt 78,566 85,750 Other non-current liabilities 41,300 45,888 Total non-current liabilities 119,866 131,638 Total liabilities 264,437 308,030 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, $ 0.00001 par value: 50,400,000 shares authorized; 14,939,315 and 15,116,786 shares issued and outstanding, respectively 88,711 83,276 Accumulated deficit ( 15,552 ) ( 19,154 ) Accumulated other comprehensive loss ( 6,363 ) ( 7,172 ) Total shareholders’ equity 66,796 56,950 Total liabilities and shareholders’ equity $ 331,233 $ 364,980 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2025 Form 10-Q | 3 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) (In millions, except per-share amounts) Three Months Ended Six Months Ended March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 Total shareholders’ equity, beginning balances $ 66,758 $ 74,100 $ 56,950 $ 62,146 Common stock and additional paid-in capital: 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 ) Share-based compensation 3,324 3,049 6,707 6,133 Ending balances 88,711 78,815 88,711 78,815 Retained earnings/(Accumulated deficit): Beginning balances ( 11,221 ) 8,242 ( 19,154 ) ( 214 ) Net income 24,780 23,636 61,110 57,552 Dividends and dividend equivalents declared ( 3,794 ) ( 3,746 ) ( 7,613 ) ( 7,520 ) Common stock withheld related to net share settlement of equity awards ( 85 ) ( 71 ) ( 1,187 ) ( 1,089 ) Common stock repurchased ( 25,232 ) ( 23,722 ) ( 48,708 ) ( 44,390 ) Ending balances ( 15,552 ) 4,339 ( 15,552 ) 4,339 Accumulated other comprehensive loss: Beginning balances ( 6,789 ) ( 9,378 ) ( 7,172 ) ( 11,452 ) Other comprehensive income 426 418 809 2,492 Ending balances ( 6,363 ) ( 8,960 ) ( 6,363 ) ( 8,960 ) Total shareholders’ equity, ending balances $ 66,796 $ 74,194 $ 66,796 $ 74,194 Dividends and dividend equivalents declared per share or RSU $ 0.25 $ 0.24 $ 0.50 $ 0.48 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2025 Form 10-Q | 4 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended March 29, 2025 March 30, 2024 Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances $ 29,943 $ 30,737 Operating activities: Net income 61,110 57,552 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 5,741 5,684 Share-based compensation expense 6,512 5,961 Other ( 2,217 ) ( 1,971 ) Changes in operating assets and liabilities: Accounts receivable, net 7,266 7,727 Vendor non-trade receivables 9,171 12,164 Inventories 858 53 Other current and non-current assets ( 4,371 ) ( 4,438 ) Accounts payable ( 14,604 ) ( 16,710 ) Other current and non-current liabilities ( 15,579 ) ( 3,437 ) Cash generated by operating activities 53,887 62,585 Investing activities: Purchases of marketable securities ( 12,442 ) ( 25,042 ) Proceeds from maturities of marketable securities 26,587 27,462 Proceeds from sales of marketable securities 5,210 4,314 Payments for acquisition of property, plant and equipment ( 6,011 ) ( 4,388 ) Other ( 635 ) ( 729 ) Cash generated by investing activities 12,709 1,617 Financing activities: Payments for taxes related to net share settlement of equity awards ( 3,205 ) ( 2,875 ) Payments for dividends and dividend equivalents ( 7,614 ) ( 7,535 ) Repurchases of common stock ( 49,504 ) ( 43,344 ) Repayments of term debt ( 4,009 ) ( 3,150 ) Repayments of commercial paper, net ( 3,968 ) ( 3,982 ) Other ( 77 ) ( 132 ) Cash used in financing activities ( 68,377 ) ( 61,018 ) 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 $ 28,162 $ 33,921 Supplemental cash flow disclosure: Cash paid for income taxes, net $ 31,683 $ 14,531 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2025 Form 10-Q | 5 Apple Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 – Summary of Significant Accounting Policies Basis of Presentation and Preparation The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management estimates. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 28, 2024 (the “2024 Form 10-K”). The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters. The Company’s fiscal years 2025 and 2024 span 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Note 2 – Revenue 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 March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 iPhone ® $ 46,841 $ 45,963 $ 115,979 $ 115,665 Mac ® 7,949 7,451 16,936 15,231 iPad ® 6,402 5,559 14,490 12,582 Wearables, Home and Accessories 7,522 7,913 19,269 19,866 Services 26,645 23,867 52,985 46,984 Total net sales $ 95,359 $ 90,753 $ 219,659 $ 210,328 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. Apple Inc. | 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- 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 March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 Numerator: Net income $ 24,780 $ 23,636 $ 61,110 $ 57,552 Denominator: Weighted-average basic shares outstanding 14,994,082 15,405,856 15,037,903 15,457,810 Effect of dilutive share-based awards 62,051 58,853 65,596 62,865 Weighted-average diluted shares 15,056,133 15,464,709 15,103,499 15,520,675 Basic earnings per share $ 1.65 $ 1.53 $ 4.06 $ 3.72 Diluted earnings per share $ 1.65 $ 1.53 $ 4.05 $ 3.71 Note 4 – Financial Instruments 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 March 29, 2025 and September 28, 2024 (in millions): March 29, 2025 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 25,061 $ — $ — $ 25,061 $ 25,061 $ — $ — Level 1: Money market funds 1,132 — — 1,132 1,132 — — Mutual funds 612 81 ( 11 ) 682 — 682 — Subtotal 1,744 81 ( 11 ) 1,814 1,132 682 — Level 2 (1) : U.S. Treasury securities 14,509 24 ( 445 ) 14,088 124 4,088 9,876 U.S. agency securities 4,889 — ( 233 ) 4,656 66 2,004 2,586 Non-U.S. government securities 6,351 29 ( 625 ) 5,755 — 529 5,226 Certificates of deposit and time deposits 1,744 — — 1,744 1,731 — 13 Commercial paper 2 — — 2 — 2 — Corporate debt securities 55,743 121 ( 1,672 ) 54,192 48 12,412 41,732 Municipal securities 303 — ( 5 ) 298 — 170 128 Mortgage- and asset-backed securities 26,742 121 ( 1,551 ) 25,312 — 449 24,863 Subtotal 110,283 295 ( 4,531 ) 106,047 1,969 19,654 84,424 Total $ 137,088 $ 376 $ ( 4,542 ) $ 132,922 $ 28,162 $ 20,336 $ 84,424 Apple Inc. | Q2 2025 Form 10-Q | 7 September 28, 2024 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 27,199 $ — $ — $ 27,199 $ 27,199 $ — $ — Level 1: Money market funds 778 — — 778 778 — — Mutual funds 515 105 ( 3 ) 617 — 617 — Subtotal 1,293 105 ( 3 ) 1,395 778 617 — Level 2 (1) : U.S. Treasury securities 16,150 45 ( 516 ) 15,679 212 4,087 11,380 U.S. agency securities 5,431 — ( 272 ) 5,159 155 703 4,301 Non-U.S. government securities 17,959 93 ( 484 ) 17,568 1,158 10,810 5,600 Certificates of deposit and time deposits 873 — — 873 387 478 8 Commercial paper 1,066 — — 1,066 28 1,038 — Corporate debt securities 65,622 270 ( 1,953 ) 63,939 26 16,027 47,886 Municipal securities 412 — ( 7 ) 405 — 190 215 Mortgage- and asset-backed securities 24,595 175 ( 1,403 ) 23,367 — 1,278 22,089 Subtotal 132,108 583 ( 4,635 ) 128,056 1,966 34,611 91,479 Total (2)(3) $ 160,600 $ 688 $ ( 4,638 ) $ 156,650 $ 29,943 $ 35,228 $ 91,479 (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 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 The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates. Foreign Exchange Rate Risk To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. 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. Apple Inc. | Q2 2025 Form 10-Q | 8 Interest Rate Risk To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. 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 March 29, 2025 and September 28, 2024 were as follows (in millions): March 29, 2025 September 28, 2024 Derivative instruments designated as accounting hedges: Foreign exchange contracts $ 68,533 $ 64,069 Interest rate contracts $ 14,575 $ 14,575 Derivative instruments not designated as accounting hedges: Foreign exchange contracts $ 68,388 $ 91,493 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 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. Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. 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 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 March 29, 2025 and September 28, 2024 (in millions): Inventories March 29, 2025 September 28, 2024 Components $ 2,673 $ 3,627 Finished goods 3,596 3,659 Total inventories $ 6,269 $ 7,286 Property, Plant and Equipment, Net March 29, 2025 September 28, 2024 Gross property, plant and equipment $ 121,179 $ 119,128 Accumulated depreciation ( 74,303 ) ( 73,448 ) Total property, plant and equipment, net $ 46,876 $ 45,680 Apple Inc. | Q2 2025 Form 10-Q | 9 Note 6 – Debt Commercial Paper The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of March 29, 2025 and September 28, 2024, the Company had $ 6.0 billion and $ 10.0 billion of commercial paper outstanding, respectively. Term Debt 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 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. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Note 8 – Share-Based Compensation Restricted Stock Units A summary of the Company’s RSU activity and related information for the six months ended March 29, 2025 is as follows: Number of RSUs (in thousands) Weighted-Average Grant-Date Fair Value Per RSU Balance as of September 28, 2024 163,326 $ 158.73 RSUs granted 63,378 $ 228.10 RSUs vested ( 39,177 ) $ 148.90 RSUs canceled ( 4,181 ) $ 177.54 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- and six-month periods ended March 29, 2025 and March 30, 2024 (in millions): Three Months Ended Six Months Ended March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 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 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. Apple Inc. | Q2 2025 Form 10-Q | 10 Note 9 – Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims. Note 10 – Segment Information and Geographic Data 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 March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 Americas: Net sales $ 40,315 $ 37,273 $ 92,963 $ 87,703 Operating income $ 16,774 $ 15,074 $ 38,283 $ 35,431 Europe: Net sales $ 24,454 $ 24,123 $ 58,315 $ 54,520 Operating income $ 10,316 $ 9,991 $ 24,923 $ 22,702 Greater China: Net sales $ 16,002 $ 16,372 $ 34,515 $ 37,191 Operating income $ 6,626 $ 6,700 $ 14,786 $ 15,322 Japan: Net sales $ 7,298 $ 6,262 $ 16,285 $ 14,029 Operating income $ 3,434 $ 3,135 $ 7,748 $ 6,954 Rest of Asia Pacific: Net sales $ 7,290 $ 6,723 $ 17,581 $ 16,885 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- and six-month periods ended March 29, 2025 and March 30, 2024 is as follows (in millions): Three Months Ended Six Months Ended March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 Segment operating income $ 40,136 $ 37,706 $ 93,310 $ 87,794 Research and development expense ( 8,550 ) ( 7,903 ) ( 16,818 ) ( 15,599 ) Other corporate expenses, net ( 1,997 ) ( 1,903 ) ( 4,071 ) ( 3,922 ) Total operating income $ 29,589 $ 27,900 $ 72,421 $ 68,273 Apple Inc. | Q2 2025 Form 10-Q | 11