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 Nine Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net sales: Products $ 66,613 $ 61,564 $ 233,287 $ 224,908 Services 27,423 24,213 80,408 71,197 Total net sales 94,036 85,777 313,695 296,105 Cost of sales: Products 43,620 39,803 147,097 140,667 Services 6,698 6,296 19,738 18,634 Total cost of sales 50,318 46,099 166,835 159,301 Gross margin 43,718 39,678 146,860 136,804 Operating expenses: Research and development 8,866 8,006 25,684 23,605 Selling, general and administrative 6,650 6,320 20,553 19,574 Total operating expenses 15,516 14,326 46,237 43,179 Operating income 28,202 25,352 100,623 93,625 Other income/(expense), net ( 171 ) 142 ( 698 ) 250 Income before provision for income taxes 28,031 25,494 99,925 93,875 Provision for income taxes 4,597 4,046 15,381 14,875 Net income $ 23,434 $ 21,448 $ 84,544 $ 79,000 Earnings per share: Basic $ 1.57 $ 1.40 $ 5.64 $ 5.13 Diluted $ 1.57 $ 1.40 $ 5.62 $ 5.11 Shares used in computing earnings per share: Basic 14,902,886 15,287,521 14,992,898 15,401,047 Diluted 14,948,179 15,348,175 15,051,726 15,463,175 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 2025 Form 10-Q | 1 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Three Months Ended Nine Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net income $ 23,434 $ 21,448 $ 84,544 $ 79,000 Other comprehensive income/(loss): Change in foreign currency translation, net of tax 449 ( 73 ) ( 86 ) ( 87 ) Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivative instruments ( 523 ) 406 810 331 Adjustment for net (gains)/losses realized and included in net income ( 571 ) ( 87 ) ( 415 ) ( 678 ) Total change in unrealized gains/losses on derivative instruments ( 1,094 ) 319 395 ( 347 ) Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities 640 268 90 3,306 Adjustment for net (gains)/losses realized and included in net income ( 1 ) 30 404 164 Total change in unrealized gains/losses on marketable debt securities 639 298 494 3,470 Total other comprehensive income/(loss) ( 6 ) 544 803 3,036 Total comprehensive income $ 23,428 $ 21,992 $ 85,347 $ 82,036 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 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) June 28, 2025 September 28, 2024 ASSETS: Current assets: Cash and cash equivalents $ 36,269 $ 29,943 Marketable securities 19,103 35,228 Accounts receivable, net 27,557 33,410 Vendor non-trade receivables 19,278 32,833 Inventories 5,925 7,286 Other current assets 14,359 14,287 Total current assets 122,491 152,987 Non-current assets: Marketable securities 77,614 91,479 Property, plant and equipment, net 48,508 45,680 Other non-current assets 82,882 74,834 Total non-current assets 209,004 211,993 Total assets $ 331,495 $ 364,980 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 50,374 $ 68,960 Other current liabilities 62,499 78,304 Deferred revenue 8,979 8,249 Commercial paper 9,923 9,967 Term debt 9,345 10,912 Total current liabilities 141,120 176,392 Non-current liabilities: Term debt 82,430 85,750 Other non-current liabilities 42,115 45,888 Total non-current liabilities 124,545 131,638 Total liabilities 265,665 308,030 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, $ 0.00001 par value: 50,400,000 shares authorized; 14,856,722 and 15,116,786 shares issued and outstanding, respectively 89,806 83,276 Accumulated deficit ( 17,607 ) ( 19,154 ) Accumulated other comprehensive loss ( 6,369 ) ( 7,172 ) Total shareholders’ equity 65,830 56,950 Total liabilities and shareholders’ equity $ 331,495 $ 364,980 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 2025 Form 10-Q | 3 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) (In millions, except per-share amounts) Three Months Ended Nine Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Total shareholders’ equity, beginning balances $ 66,796 $ 74,194 $ 56,950 $ 62,146 Common stock and additional paid-in capital: Beginning balances 88,711 78,815 83,276 73,812 Common stock issued — — 825 752 Common stock withheld related to net share settlement of equity awards ( 2,163 ) ( 1,920 ) ( 4,260 ) ( 3,802 ) Share-based compensation 3,258 2,955 9,965 9,088 Ending balances 89,806 79,850 89,806 79,850 Retained earnings/(Accumulated deficit): Beginning balances ( 15,552 ) 4,339 ( 19,154 ) ( 214 ) Net income 23,434 21,448 84,544 79,000 Dividends and dividend equivalents declared ( 3,912 ) ( 3,864 ) ( 11,525 ) ( 11,384 ) Common stock withheld related to net share settlement of equity awards ( 411 ) ( 428 ) ( 1,598 ) ( 1,517 ) Common stock repurchased ( 21,166 ) ( 26,221 ) ( 69,874 ) ( 70,611 ) Ending balances ( 17,607 ) ( 4,726 ) ( 17,607 ) ( 4,726 ) Accumulated other comprehensive loss: Beginning balances ( 6,363 ) ( 8,960 ) ( 7,172 ) ( 11,452 ) Other comprehensive income/(loss) ( 6 ) 544 803 3,036 Ending balances ( 6,369 ) ( 8,416 ) ( 6,369 ) ( 8,416 ) Total shareholders’ equity, ending balances $ 65,830 $ 66,708 $ 65,830 $ 66,708 Dividends and dividend equivalents declared per share or RSU $ 0.26 $ 0.25 $ 0.76 $ 0.73 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 2025 Form 10-Q | 4 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Nine Months Ended June 28, 2025 June 29, 2024 Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances $ 29,943 $ 30,737 Operating activities: Net income 84,544 79,000 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 8,571 8,534 Share-based compensation expense 9,680 8,830 Other ( 1,748 ) ( 1,964 ) Changes in operating assets and liabilities: Accounts receivable, net 5,685 6,697 Vendor non-trade receivables 13,555 11,100 Inventories 1,223 41 Other current and non-current assets ( 6,116 ) ( 5,626 ) Accounts payable ( 18,479 ) ( 15,171 ) Other current and non-current liabilities ( 15,161 ) 2 Cash generated by operating activities 81,754 91,443 Investing activities: Purchases of marketable securities ( 17,591 ) ( 38,074 ) Proceeds from maturities of marketable securities 35,036 39,838 Proceeds from sales of marketable securities 10,785 7,382 Payments for acquisition of property, plant and equipment ( 9,473 ) ( 6,539 ) Other ( 975 ) ( 1,117 ) Cash generated by investing activities 17,782 1,490 Financing activities: Payments for taxes related to net share settlement of equity awards ( 5,719 ) ( 5,163 ) Payments for dividends and dividend equivalents ( 11,559 ) ( 11,430 ) 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 ) Repayments of commercial paper, net ( 65 ) ( 2,985 ) Other ( 87 ) ( 191 ) Cash used in financing activities ( 93,210 ) ( 97,035 ) Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents 6,326 ( 4,102 ) Cash, cash equivalents, and restricted cash and cash equivalents, ending balances $ 36,269 $ 26,635 Supplemental cash flow disclosure: Cash paid for income taxes, net $ 37,332 $ 19,230 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 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 nine-month periods ended June 28, 2025 and June 29, 2024 (in millions): Three Months Ended Nine Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 iPhone ® $ 44,582 $ 39,296 $ 160,561 $ 154,961 Mac ® 8,046 7,009 24,982 22,240 iPad ® 6,581 7,162 21,071 19,744 Wearables, Home and Accessories 7,404 8,097 26,673 27,963 Services 27,423 24,213 80,408 71,197 Total net sales $ 94,036 $ 85,777 $ 313,695 $ 296,105 Portion of total net sales that was included in deferred revenue as of the beginning of the period $ 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 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. Apple Inc. | 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 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 June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Numerator: Net income $ 23,434 $ 21,448 $ 84,544 $ 79,000 Denominator: Weighted-average basic shares outstanding 14,902,886 15,287,521 14,992,898 15,401,047 Effect of dilutive share-based awards 45,293 60,654 58,828 62,128 Weighted-average diluted shares 14,948,179 15,348,175 15,051,726 15,463,175 Basic earnings per share $ 1.57 $ 1.40 $ 5.64 $ 5.13 Diluted earnings per share $ 1.57 $ 1.40 $ 5.62 $ 5.11 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 June 28, 2025 and September 28, 2024 (in millions): June 28, 2025 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 26,686 $ — $ — $ 26,686 $ 26,686 $ — $ — Level 1: Money market funds 3,779 — — 3,779 3,779 — — Mutual funds 646 134 ( 3 ) 777 — 777 — Subtotal 4,425 134 ( 3 ) 4,556 3,779 777 — Level 2 (1) : U.S. Treasury securities 15,775 46 ( 362 ) 15,459 1,030 3,649 10,780 U.S. agency securities 5,383 — ( 189 ) 5,194 647 2,030 2,517 Non-U.S. government securities 6,756 43 ( 567 ) 6,232 297 795 5,140 Certificates of deposit and time deposits 3,177 — — 3,177 3,113 51 13 Commercial paper 710 — — 710 710 — — Corporate debt securities 49,671 212 ( 1,251 ) 48,632 7 11,576 37,049 Municipal securities 263 — ( 3 ) 260 — 157 103 Mortgage- and asset-backed securities 23,424 90 ( 1,434 ) 22,080 — 68 22,012 Subtotal 105,159 391 ( 3,806 ) 101,744 5,804 18,326 77,614 Total $ 136,270 $ 525 $ ( 3,809 ) $ 132,986 $ 36,269 $ 19,103 $ 77,614 Apple Inc. | Q3 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 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 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 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. Apple Inc. | Q3 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 June 28, 2025 and September 28, 2024, were as follows (in millions): June 28, 2025 September 28, 2024 Derivative instruments designated as accounting hedges: Foreign exchange contracts $ 63,212 $ 64,069 Interest rate contracts $ 12,875 $ 14,575 Derivative instruments not designated as accounting hedges: Foreign exchange contracts $ 78,649 $ 91,493 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 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. 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 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 June 28, 2025 and September 28, 2024 (in millions): Inventories June 28, 2025 September 28, 2024 Components $ 2,288 $ 3,627 Finished goods 3,637 3,659 Total inventories $ 5,925 $ 7,286 Property, Plant and Equipment, Net June 28, 2025 September 28, 2024 Gross property, plant and equipment $ 124,311 $ 119,128 Accumulated depreciation ( 75,803 ) ( 73,448 ) Total property, plant and equipment, net $ 48,508 $ 45,680 Apple Inc. | Q3 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 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 June 28, 2025 June 29, 2024 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 ) Term Debt 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 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 nine months ended June 28, 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 66,667 $ 226.87 RSUs vested ( 73,515 ) $ 159.29 RSUs canceled ( 6,502 ) $ 180.14 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. Apple Inc. | 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 nine-month periods ended June 28, 2025 and June 29, 2024 (in millions): Three Months Ended Nine Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 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 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 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 nine-month periods ended June 28, 2025 and June 29, 2024 (in millions): Three Months Ended Nine Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Americas: Net sales $ 41,198 $ 37,678 $ 134,161 $ 125,381 Operating income $ 16,511 $ 15,209 $ 54,794 $ 50,640 Europe: Net sales $ 24,014 $ 21,884 $ 82,329 $ 76,404 Operating income $ 10,501 $ 9,170 $ 35,424 $ 31,872 Greater China: Net sales $ 15,369 $ 14,728 $ 49,884 $ 51,919 Operating income $ 5,822 $ 5,562 $ 20,608 $ 20,884 Japan: Net sales $ 5,782 $ 5,097 $ 22,067 $ 19,126 Operating income $ 2,872 $ 2,544 $ 10,620 $ 9,498 Rest of Asia Pacific: Net sales $ 7,673 $ 6,390 $ 25,254 $ 23,275 Operating income $ 3,243 $ 2,610 $ 10,813 $ 9,995 Apple Inc. | 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 June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Segment operating income $ 38,949 $ 35,095 $ 132,259 $ 122,889 Research and development expense ( 8,866 ) ( 8,006 ) ( 25,684 ) ( 23,605 ) Other corporate expenses, net ( 1,881 ) ( 1,737 ) ( 5,952 ) ( 5,659 ) Total operating income $ 28,202 $ 25,352 $ 100,623 $ 93,625 Apple Inc. | Q3 2025 Form 10-Q | 12