What changed in this filing

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Item 1. Financial Statements

2026-05-01 compared with 2026-01-30 · 97 added, 54 removed, 313 unchanged (33% 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

2025 December 28,

Three Months Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Products $ 80,208 $ 68,714 $ 193,951 $ 166,674

25 unchanged sentences

(In millions)

Three Months Ended

2025 December 28,

Three Months Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Net income $ 29,578 $ 24,780 $ 71,675 $ 61,110

9 unchanged sentences

Total change in unrealized gains/losses on marketable debt securities ( 794 ) 1,282 ( 366 ) ( 145 )

Total other comprehensive income 717 383

Total other comprehensive income/(loss) ( 521 ) 426 196 809

Total comprehensive income $ 29,057 $ 25,206 $ 71,871 $ 61,919

15 unchanged sentences

Property, plant and equipment, net 50,116 49,834

Intangible assets, net 21,334 11,093

Other non-current assets 77,430 72,634

20 unchanged sentences

99,507 93,568

Accumulated deficit ( 2,177 ) ( 14,264 )

Retained earnings/(Accumulated deficit) 12,359 ( 14,264 )

Accumulated other comprehensive loss ( 5,375 ) ( 5,571 )

5 unchanged sentences

(In millions, except per-share amounts)

Three Months Ended

2025 December 28,

Three Months Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Total shareholders’ equity, beginning balances $ 88,190 $ 66,758 $ 73,733 $ 56,950

1 unchanged sentence

Beginning balances 95,221 84,768 93,568 83,276

Common stock issued 878 825 878 825

Common stock withheld related to net share settlement of equity awards ( 250 ) ( 206 ) ( 2,308 ) ( 2,097 )

1 unchanged sentence

Ending balances 99,507 88,711 99,507 88,711

Accumulated deficit:

Retained earnings/(Accumulated deficit):

Beginning balances ( 2,177 ) ( 11,221 ) ( 14,264 ) ( 19,154 )

6 unchanged sentences

Beginning balances ( 4,854 ) ( 6,789 ) ( 5,571 ) ( 7,172 )

Other comprehensive income 717 383

Other comprehensive income/(loss) ( 521 ) 426 196 809

Ending balances ( 5,375 ) ( 6,363 ) ( 5,375 ) ( 6,363 )

5 unchanged sentences

(In millions)

Three Months Ended

2025 December 28,

Six Months Ended

2026 March 29,

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

29 unchanged sentences

Cash used in financing activities ( 61,935 ) ( 68,377 )

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

Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents 9,638 ( 1,781 )

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

12 unchanged sentences

generally accepted accounting principles (“GAAP”) requires the use of management estimates.

Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation.

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 27, 2025 (the “2025 Form 10-K”).

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

Three Months Ended

2025 December 28,

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 28, 2026 and March 29, 2025 (in millions):

Three Months Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

$ 56,994 $ 46,841 $ 142,263 $ 115,979

8,399 7,949 16,785 16,936

6,914 6,402 15,509 14,490

Wearables, Home and Accessories 7,901 7,522 19,394 19,269

3 unchanged sentences

$ 3,987 $ 3,672 $ 5,834 $ 5,440

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.

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- and six-month periods ended March 28, 2026 and March 29, 2025, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of March 28, 2026 and September 27, 2025, the Company had total deferred revenue of $ 14.7 billion and $ 13.7 billion, respectively.

As of March 28, 2026, the Company expects 64 % of total deferred revenue to be realized in less than a year, 23 % within one-to-two years, 11 % within two-to-three years and 2 % in greater than three years.

| Q2 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 months ended December 27, 2025 and December 28, 2024 (net income in millions and shares in thousands):

Three Months Ended

2025 December 28,

The following table shows the computation of basic and diluted earnings per share for the three- and six-month periods ended March 28, 2026 and March 29, 2025 (net income in millions and shares in thousands):

Three Months Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Net income $ 29,578 $ 24,780 $ 71,675 $ 61,110

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 27, 2025 and September 27, 2025 (in millions):

December 27, 2025

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of March 28, 2026 and September 27, 2025 (in millions):

March 28, 2026

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.

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.

As of March 28, 2026, 79 % 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 4 % greater than 10 years.

As of March 28, 2026, 13 % of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 22 % between 5 and 10 years, and 65 % 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 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.

As of March 28, 2026, 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 16 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

| Q2 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):

The notional amounts of the Company’s outstanding derivative instruments as of March 28, 2026 and September 27, 2025, were as follows (in millions):

2026 September 27,

4 unchanged sentences

Foreign exchange contracts $ 96,341 $ 109,079

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.

As of March 28, 2026 and September 27, 2025, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $ 10.4 billion and $ 12.6 billion, respectively.

Accounts Receivable

Trade Receivables

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.

As of both March 28, 2026 and September 27, 2025, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 17 % and 12 %, respectively.

The Company’s third-party cellular network carriers accounted for 30 % and 34 % of total trade receivables as of March 28, 2026 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 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 %.

As of March 28, 2026, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted f or 51 % and 18 %.

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

The following tables show the Company’s condensed consolidated financial statement details as of March 28, 2026 and September 27, 2025 (in millions):

Property, Plant and Equipment, Net

4 unchanged sentences

Total property, plant and equipment, net $ 50,116 $ 49,834

Intangible Assets, Net

2026 September 27,

Gross intangible assets $ 37,767 $ 24,950

Accumulated amortization ( 11,970 ) ( 11,649 )

Total intangible assets, net 25,797 13,301

Current portion of intangible assets, net ( 4,463 ) ( 2,208 )

Non-current portion of intangible assets, net $ 21,334 $ 11,093

| Q2 2026 Form 10-Q | 9

3 unchanged sentences

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

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,

As of March 28, 2026 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 six months ended March 28, 2026 and March 29, 2025 (in millions):

Six Months Ended

2026 March 29,

Maturities 90 days or less:

3 unchanged sentences

Total repayments of commercial paper, net $ ( 5,911 ) $ ( 3,968 )

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.

As of March 28, 2026 and September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $ 82.7 billion and $ 90.7 billion, respectively (collectively the “Notes”).

As of March 28, 2026 and September 27, 2025, the fair value of the Company’s Notes, based on Level 2 inputs, was $ 70.8 billion and $ 80.4 billion, respectively.

Note 7 – Shareholders’ Equity

Share Repurchase Program

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

During the six months ended March 28, 2026, the Company repurchased 135 million shares of its common stock for $ 36.0 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 restricted stock unit (“RSU”) activity and related information for the three months ended December 27, 2025, is as follows:

A summary of the Company’s restricted stock unit (“RSU”) activity and related information for the six months ended March 28, 2026, is as follows:

(in thousands)

6 unchanged sentences

RSUs forfeited ( 6,170 ) $ 210.31

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.

Balance as of March 28, 2026 173,985 $ 217.51

The total vesting-date fair value of RSUs was $ 917 million and $ 906 million for the three months ended March 28, 2026 and March 29, 2025, respectively, and was $ 9.5 billion and $ 9.3 billion for the six months ended March 28, 2026 and March 29, 2025, respectively.

| Q2 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 months ended December 27, 2025 and December 28, 2024 (in millions):

Three Months Ended

2025 December 28,

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 28, 2026 and March 29, 2025 (in millions):

Three Months Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Share-based compensation expense $ 3,528 $ 3,226 $ 7,122 $ 6,512

Income tax benefit related to share-based compensation expense $ ( 802 ) $ ( 743 ) $ ( 2,095 ) $ ( 2,075 )

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.

As of March 28, 2026, the total unrecognized compensation cost related to outstanding RSUs was $ 28.8 billion, which the Company expects to recognize over a weighted-average period of 2.8 years.

Note 9 – Commitments and Contingencies

1 unchanged sentence

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)

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

Future payments under unconditional purchase obligations with a remaining term in excess of one year as of March 28, 2026, are as follows (in millions):

2026 (remaining six months) $ 2,994

Thereafter 549

6 unchanged sentences

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

The following tables show information by reportable segment for the three- and six-month periods ended March 28, 2026 and March 29, 2025 (in millions):

Three Months Ended March 28, 2026

Americas Europe Greater

7 unchanged sentences

Operating income/(loss) $ 19,373 $ 13,052 $ 9,189 $ 3,839 $ 4,127 $ ( 13,695 ) $ 35,885

Three Months Ended December 28, 2024

Three Months Ended March 29, 2025

Americas Europe Greater

7 unchanged sentences

Operating income/(loss) $ 16,774 $ 10,316 $ 6,626 $ 3,434 $ 2,986 $ ( 10,547 ) $ 29,589

Six Months Ended March 28, 2026

Americas Europe Greater

Japan Rest of

Asia Pacific Corporate Total

Net sales $ 103,622 $ 66,201 $ 46,023 $ 17,814 $ 21,280 $ — $ 254,940

Cost of sales ( 54,963 ) ( 32,817 ) ( 23,663 ) ( 8,778 ) ( 10,707 ) — ( 130,928 )

Research and development — — — — — ( 22,306 ) ( 22,306 )

Selling and marketing ( 5,333 ) ( 2,542 ) ( 1,379 ) ( 584 ) ( 760 ) — ( 10,598 )

General and administrative — — — — — ( 4,371 ) ( 4,371 )

Operating income/(loss) $ 43,326 $ 30,842 $ 20,981 $ 8,452 $ 9,813 $ ( 26,677 ) $ 86,737

Six Months Ended March 29, 2025

Americas Europe Greater

Japan Rest of

Asia Pacific Corporate Total

Net sales $ 92,963 $ 58,315 $ 34,515 $ 16,285 $ 17,581 $ — $ 219,659

Cost of sales ( 49,589 ) ( 31,068 ) ( 18,553 ) ( 8,003 ) ( 9,304 ) — ( 116,517 )

Research and development — — — — — ( 16,818 ) ( 16,818 )

Selling and marketing ( 5,091 ) ( 2,324 ) ( 1,176 ) ( 534 ) ( 707 ) — ( 9,832 )

General and administrative — — — — — ( 4,071 ) ( 4,071 )

Operating income/(loss) $ 38,283 $ 24,923 $ 14,786 $ 7,748 $ 7,570 $ ( 20,889 ) $ 72,421

| Q2 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