What changed in this filing

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Item 1. Financial Statements

2025-08-01 compared with 2025-05-02 · 76 added, 65 removed, 312 unchanged (31% 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 Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Products $ 66,613 $ 61,564 $ 233,287 $ 224,908

25 unchanged sentences

(In millions)

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Net income $ 23,434 $ 21,448 $ 84,544 $ 79,000

9 unchanged sentences

Total change in unrealized gains/losses on marketable debt securities 639 298 494 3,470

Total other comprehensive income 426 418 809 2,492

Total other comprehensive income/(loss) ( 6 ) 544 803 3,036

Total comprehensive income $ 23,428 $ 21,992 $ 85,347 $ 82,036

45 unchanged sentences

(In millions, except per-share amounts)

Three Months Ended Six Months Ended

2025 March 30,

2024 March 29,

2025 March 30,

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Total shareholders’ equity, beginning balances $ 66,796 $ 74,194 $ 56,950 $ 62,146

14 unchanged sentences

Beginning balances ( 6,363 ) ( 8,960 ) ( 7,172 ) ( 11,452 )

Other comprehensive income 426 418 809 2,492

Other comprehensive income/(loss) ( 6 ) 544 803 3,036

Ending balances ( 6,369 ) ( 8,416 ) ( 6,369 ) ( 8,416 )

5 unchanged sentences

(In millions)

Six Months Ended

2025 March 30,

Nine Months Ended

2025 June 29,

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

25 unchanged sentences

Repurchases of common stock ( 70,579 ) ( 69,866 )

Proceeds from issuance of term debt, net 4,481 —

Repayments of term debt ( 9,682 ) ( 7,400 )

23 unchanged sentences

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

2025 March 30,

2024 March 29,

2025 March 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 nine-month periods ended June 28, 2025 and June 29, 2024 (in millions):

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

$ 44,582 $ 39,296 $ 160,561 $ 154,961

6 unchanged sentences

$ 4,015 $ 3,405 $ 6,958 $ 6,541

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.

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 nine-month periods ended June 28, 2025 and June 29, 2024, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

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

As of June 28, 2025, the Company expects 66 % of total deferred revenue to be realized in less than a year, 23 % within one-to-two years, 9 % within two-to-three years and 2 % in greater than three years.

| Q3 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

2025 March 30,

2024 March 29,

2025 March 30,

The following table shows the computation of basic and diluted earnings per share for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (net income in millions and shares in thousands):

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Net income $ 23,434 $ 21,448 $ 84,544 $ 79,000

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 March 29, 2025 and September 28, 2024 (in millions):

March 29, 2025

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

June 28, 2025

Cost Unrealized

45 unchanged sentences

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.

As of June 28, 2025, 82 % of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 14 % between 5 and 10 years, and 4 % greater than 10 years.

As of June 28, 2025, 12 % of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 11 % 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 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.

As of June 28, 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 March 29, 2025 and September 28, 2024 were as follows (in millions):

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

2025 September 28,

4 unchanged sentences

Foreign exchange contracts $ 78,649 $ 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.

As of June 28, 2025 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $ 12.5 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.

As of June 28, 2025, the Company had two customers that individually represented 10% or more of total trade receivables, which accounted for 18 % and 10 %.

The Company’s third-party cellular network carriers accounted for 31 % and 38 % of total trade receivables as of June 28, 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 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 % .

As of June 28, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted f or 48 % and 14 %.

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):

The following tables show the Company’s condensed consolidated financial statement details as of June 28, 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 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.

As of June 28, 2025 and September 28, 2024, the Company had $ 9.9 billion and $ 10.0 billion of commercial paper outstanding, respectively.

The following table provides a summary of cash flows associated with commercial paper for the nine months ended June 28, 2025 and June 29, 2024 (in millions):

Nine Months Ended

2025 June 29,

Maturities 90 days or less:

Repayments of commercial paper, net $ ( 5,690 ) $ ( 2,985 )

Maturities greater than 90 days:

Proceeds from commercial paper 5,625 —

Total repayments of commercial paper, net $ ( 65 ) $ ( 2,985 )

As of June 28, 2025 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $ 91.8 billion and $ 96.7 billion, respectively (collectively the “Notes”).

As of June 28, 2025 and September 28, 2024, the fair value of the Company’s Notes, based on Level 2 inputs, was $ 80.4 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”).

During the nine months ended June 28, 2025, the Company repurchased 312 million shares of its common stock for $ 69.3 billion.

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

Under the programs, 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:

A summary of the Company’s RSU activity and related information for the nine months ended June 28, 2025, is as follows:

(in thousands)

6 unchanged sentences

RSUs canceled ( 6,502 ) $ 180.14

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.

Balance as of June 28, 2025 149,976 $ 187.82

The total vesting-date fair value of RSUs was $ 7.0 billion and $ 16.3 billion for the three- and nine-month periods ended June 28, 2025, respectively, and was $ 6.4 billion and $ 15.0 billion for the three- and nine-month periods ended June 29, 2024, respectively.

| Q3 2025 Form 10-Q | 10

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

2025 March 30,

2024 March 29,

2025 March 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 nine-month periods ended June 28, 2025 and June 29, 2024 (in millions):

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Share-based compensation expense $ 3,168 $ 2,869 $ 9,680 $ 8,830

Income tax benefit related to share-based compensation expense $ ( 795 ) $ ( 764 ) $ ( 2,870 ) $ ( 2,662 )

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

As of June 28, 2025, the total unrecognized compensation cost related to outstanding RSUs was $ 23.7 billion, which the Company expects to recognize over a weighted-average period of 2.6 years.

Note 9 – Contingencies

3 unchanged sentences

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

2025 March 30,

2024 March 29,

2025 March 30,

The following table shows information by reportable segment for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (in millions):

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Net sales $ 41,198 $ 37,678 $ 134,161 $ 125,381

10 unchanged sentences

Operating income $ 3,243 $ 2,610 $ 10,813 $ 9,995

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,

| Q3 2025 Form 10-Q | 11

A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 28, 2025 and June 29, 2024, is as follows (in millions):

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Segment operating income $ 38,949 $ 35,095 $ 132,259 $ 122,889

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