What changed in this filing

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Item 1. Financial Statements

2026-01-30 compared with 2025-08-01 · 83 added, 104 removed, 284 unchanged (40% 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 Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Three Months Ended

2025 December 28,

Products $ 113,743 $ 97,960

25 unchanged sentences

(In millions)

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Three Months Ended

2025 December 28,

Net income $ 42,097 $ 36,330

9 unchanged sentences

Total change in unrealized gains/losses on marketable debt securities 428 ( 1,427 )

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

Total other comprehensive income 717 383

Total comprehensive income $ 42,814 $ 36,713

45 unchanged sentences

(In millions, except per-share amounts)

Three Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Three Months Ended

2025 December 28,

Total shareholders’ equity, beginning balances $ 73,733 $ 56,950

1 unchanged sentence

Beginning balances 93,568 83,276

Common stock issued — — 825 752

Common stock withheld related to net share settlement of equity awards ( 2,058 ) ( 1,891 )

1 unchanged sentence

Ending balances 95,221 84,768

Retained earnings/(Accumulated deficit):

Accumulated deficit:

Beginning balances ( 14,264 ) ( 19,154 )

6 unchanged sentences

Beginning balances ( 5,571 ) ( 7,172 )

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

Other comprehensive income 717 383

Ending balances ( 4,854 ) ( 6,789 )

5 unchanged sentences

(In millions)

Nine Months Ended

2025 June 29,

Three Months Ended

2025 December 28,

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

20 unchanged sentences

Other ( 154 ) ( 603 )

Cash generated by investing activities 17,782 1,490

Cash generated by/(used in) investing activities ( 4,886 ) 9,792

Financing activities:

2 unchanged sentences

Repurchases of common stock ( 24,701 ) ( 23,606 )

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

Repayments of term debt ( 2,164 ) ( 1,009 )

2 unchanged sentences

Cash used in financing activities ( 39,656 ) ( 39,371 )

Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents 6,326 ( 4,102 )

Increase in cash, cash equivalents, and restricted cash and cash equivalents 9,383 356

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

18 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 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

8,046 7,009 24,982 22,240

The following table shows disaggregated net sales, as well as the portion of total net sales that was previously deferred, for the three months ended December 27, 2025 and December 28, 2024 (in millions):

Three Months Ended

2025 December 28,

$ 85,269 $ 69,138

4 unchanged sentences

$ 4,050 $ 3,690

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.

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information” for the three months ended December 27, 2025 and December 28, 2024, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of December 27, 2025 and September 27, 2025, the Company had total deferred revenue of $ 14.3 billion and $ 13.7 billion, respectively.

As of December 27, 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.

| Q1 2026 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

2025 June 29,

2024 June 28,

2025 June 29,

The following table shows the computation of basic and diluted earnings per share for the three months ended December 27, 2025 and December 28, 2024 (net income in millions and shares in thousands):

Three Months Ended

2025 December 28,

Net income $ 42,097 $ 36,330

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 June 28, 2025 and September 28, 2024 (in millions):

June 28, 2025

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 27, 2025 and September 27, 2025 (in millions):

December 27, 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 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.

As of December 27, 2025, 78 % of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 17 % between 5 and 10 years, and 5 % greater than 10 years.

As of December 27, 2025, 12 % of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 18 % between 5 and 10 years, and 70 % 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 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.

As of December 27, 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.

| Q3 2025 Form 10-Q | 8

Interest Rate Risk

1 unchanged sentence

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):

| Q1 2026 Form 10-Q | 8

The notional amounts of the Company’s outstanding derivative instruments as of December 27, 2025 and September 27, 2025, were as follows (in millions):

2025 September 27,

4 unchanged sentences

Foreign exchange contracts $ 120,980 $ 109,079

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.

As of both December 27, 2025 and September 27, 2025, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $ 12.6 billion.

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.

As of December 27, 2025, the Company had two customers that individually represented 10% or more of total trade receivables, which accounted for 15 % and 10 %.

As of September 27, 2025, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 12 %.

The Company’s third-party cellular network carriers accounted for 35 % and 34 % of total trade receivables as of December 27, 2025 and September 27, 2025, 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 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 %.

As of December 27, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted f or 47 % and 26 %.

A s of September 27, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 46 % 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):

2025 September 28,

$ 2,288 $ 3,627

Finished goods

Total inventories

$ 5,925 $ 7,286

The following table shows the Company’s condensed consolidated financial statement details as of December 27, 2025 and September 27, 2025 (in millions):

Property, Plant and Equipment, Net

9 unchanged sentences

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

2025 June 29,

As of December 27, 2025 and September 27, 2025, the Company had $ 2.0 billion and $ 8.0 billion of commercial paper outstanding, respectively.

The following table provides a summary of cash flows associated with commercial paper for the three months ended December 27, 2025 and December 28, 2024 (in millions):

Three Months Ended

2025 December 28,

Maturities 90 days or less:

1 unchanged sentence

Maturities greater than 90 days:

Proceeds from commercial paper 5,625 —

Repayments of commercial paper ( 3,788 ) —

Total repayments of commercial paper, net $ ( 5,910 ) $ ( 7,944 )

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.

As of December 27, 2025 and September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $ 88.5 billion and $ 90.7 billion, respectively (collectively the “Notes”).

As of December 27, 2025 and September 27, 2025, the fair value of the Company’s Notes, based on Level 2 inputs, was $ 78.1 billion and $ 80.4 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”).

During the three months ended December 27, 2025, the Company repurchased 93 million shares of its common stock for $ 25.0 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 (“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:

A summary of the Company’s restricted stock unit (“RSU”) activity and related information for the three months ended December 27, 2025, is as follows:

(in thousands)

5 unchanged sentences

RSUs vested ( 33,905 ) $ 173.00

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.

RSUs forfeited ( 3,470 ) $ 208.14

Balance as of December 27, 2025 176,096 $ 215.98

The total vesting-date fair value of RSUs was $ 8.6 billion and $ 8.4 billion for the three months ended December 27, 2025 and December 28, 2024, respectively.

| Q1 2026 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

2025 June 29,

2024 June 28,

2025 June 29,

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 27, 2025 and December 28, 2024 (in millions):

Three Months Ended

2025 December 28,

Share-based compensation expense $ 3,594 $ 3,286

Income tax benefit related to share-based compensation expense $ ( 1,293 ) $ ( 1,332 )

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

As of December 27, 2025, the total unrecognized compensation cost related to outstanding RSUs was $ 31.5 billion, which the Company expects to recognize over a weighted-average period of 2.9 years.

Note 9 – Commitments and Contingencies

Unconditional Purchase Obligations

The Company has entered into certain off–balance sheet commitments that require the future purchase of goods or services (“unconditional purchase obligations”).

The Company’s unconditional purchase obligations primarily consist of supplier arrangements, licensed intellectual property and content, and distribution rights.

Future payments under unconditional purchase obligations with a remaining term in excess of one year as of December 27, 2025, are as follows (in millions):

2026 (remaining nine months)

Thereafter 827

Total $ 33,182

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.

1 unchanged sentence

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

2025 June 29,

2024 June 28,

2025 June 29,

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

Operating income $ 16,511 $ 15,209 $ 54,794 $ 50,640

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

| Q1 2026 Form 10-Q | 11

Note 10 – Segment Information

The following table shows information by reportable segment for the three months ended December 27, 2025 and December 28, 2024 (in millions):

Three Months Ended December 27, 2025

Americas Europe Greater

Japan Rest of

Asia Pacific Corporate Total

Net sales $ 58,529 $ 38,146 $ 25,526 $ 9,413 $ 12,142 $ — $ 143,756

Operating income $ 2,872 $ 2,544 $ 10,620 $ 9,498

Rest of Asia Pacific:

Cost of sales ( 31,849 ) ( 19,061 ) ( 13,030 ) ( 4,511 ) ( 6,074 ) — ( 74,525 )

Research and development — — — — — ( 10,887 ) ( 10,887 )

Selling and marketing ( 2,727 ) ( 1,295 ) ( 704 ) ( 289 ) ( 382 ) — ( 5,397 )

General and administrative — — — — — ( 2,095 ) ( 2,095 )

Operating income/(loss) $ 23,953 $ 17,790 $ 11,792 $ 4,613 $ 5,686 $ ( 12,982 ) $ 50,852

Three Months Ended December 28, 2024

Americas Europe Greater

China Japan Rest of

Asia Pacific Corporate Total

Net sales $ 52,648 $ 33,861 $ 18,513 $ 8,987 $ 10,291 $ — $ 124,300

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

| 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

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

Cost of sales ( 28,495 ) ( 18,043 ) ( 9,759 ) ( 4,393 ) ( 5,335 ) — ( 66,025 )

Research and development — — — — — ( 8,268 ) ( 8,268 )

Selling and marketing ( 2,644 ) ( 1,211 ) ( 594 ) ( 280 ) ( 372 ) — ( 5,101 )

General and administrative — — — — — ( 2,074 ) ( 2,074 )

Operating income/(loss) $ 21,509 $ 14,607 $ 8,160 $ 4,314 $ 4,584 $ ( 10,342 ) $ 42,832

| Q1 2026 Form 10-Q | 12

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