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 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Net sales: Products $ 80,208 $ 68,714 $ 193,951 $ 166,674 Services 30,976 26,645 60,989 52,985 Total net sales 111,184 95,359 254,940 219,659 Cost of sales: Products 49,179 44,030 116,657 103,477 Services 7,224 6,462 14,271 13,040 Total cost of sales 56,403 50,492 130,928 116,517 Gross margin 54,781 44,867 124,012 103,142 Operating expenses: Research and development 11,419 8,550 22,306 16,818 Selling, general and administrative 7,477 6,728 14,969 13,903 Total operating expenses 18,896 15,278 37,275 30,721 Operating income 35,885 29,589 86,737 72,421 Other income/(expense), net ( 52 ) ( 279 ) 98 ( 527 ) Income before provision for income taxes 35,833 29,310 86,835 71,894 Provision for income taxes 6,255 4,530 15,160 10,784 Net income $ 29,578 $ 24,780 $ 71,675 $ 61,110 Earnings per share: Basic $ 2.02 $ 1.65 $ 4.87 $ 4.06 Diluted $ 2.01 $ 1.65 $ 4.85 $ 4.05 Shares used in computing earnings per share: Basic 14,673,278 14,994,082 14,710,718 15,037,903 Diluted 14,725,873 15,056,133 14,768,115 15,103,499 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2026 Form 10-Q | 1 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Net income $ 29,578 $ 24,780 $ 71,675 $ 61,110 Other comprehensive income/(loss): Change in foreign currency translation, net of tax 67 90 ( 92 ) ( 535 ) Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivative instruments 162 ( 318 ) 373 1,333 Adjustment for net (gains)/losses realized and included in net income 44 ( 628 ) 281 156 Total change in unrealized gains/losses on derivative instruments 206 ( 946 ) 654 1,489 Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities ( 808 ) 1,097 ( 384 ) ( 550 ) Adjustment for net (gains)/losses realized and included in net income 14 185 18 405 Total change in unrealized gains/losses on marketable debt securities ( 794 ) 1,282 ( 366 ) ( 145 ) Total other comprehensive income/(loss) ( 521 ) 426 196 809 Total comprehensive income $ 29,057 $ 25,206 $ 71,871 $ 61,919 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2026 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 28, 2026 September 27, 2025 ASSETS: Current assets: Cash and cash equivalents $ 45,572 $ 35,934 Marketable securities 22,935 18,763 Accounts receivable, net 30,339 39,777 Vendor non-trade receivables 23,172 33,180 Inventories 6,747 5,718 Other current assets 15,349 14,585 Total current assets 144,114 147,957 Non-current assets: Marketable securities 78,088 77,723 Property, plant and equipment, net 50,116 49,834 Intangible assets, net 21,334 11,093 Other non-current assets 77,430 72,634 Total non-current assets 226,968 211,284 Total assets $ 371,082 $ 359,241 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 57,349 $ 69,860 Other current liabilities 57,654 66,387 Deferred revenue 9,331 9,055 Commercial paper 1,997 7,979 Term debt 8,310 12,350 Total current liabilities 134,641 165,631 Non-current liabilities: Term debt 74,404 78,328 Other non-current liabilities 55,546 41,549 Total non-current liabilities 129,950 119,877 Total liabilities 264,591 285,508 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, $ 0.00001 par value: 50,400,000 shares authorized; 14,667,688 and 14,773,260 shares issued and outstanding, respectively 99,507 93,568 Retained earnings/(Accumulated deficit) 12,359 ( 14,264 ) Accumulated other comprehensive loss ( 5,375 ) ( 5,571 ) Total shareholders’ equity 106,491 73,733 Total liabilities and shareholders’ equity $ 371,082 $ 359,241 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2026 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 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Total shareholders’ equity, beginning balances $ 88,190 $ 66,758 $ 73,733 $ 56,950 Common stock and additional paid-in capital: 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 ) Share-based compensation 3,658 3,324 7,369 6,707 Ending balances 99,507 88,711 99,507 88,711 Retained earnings/(Accumulated deficit): Beginning balances ( 2,177 ) ( 11,221 ) ( 14,264 ) ( 19,154 ) Net income 29,578 24,780 71,675 61,110 Dividends and dividend equivalents declared ( 3,855 ) ( 3,794 ) ( 7,735 ) ( 7,613 ) Common stock withheld related to net share settlement of equity awards ( 88 ) ( 85 ) ( 1,024 ) ( 1,187 ) Common stock repurchased ( 11,099 ) ( 25,232 ) ( 36,293 ) ( 48,708 ) Ending balances 12,359 ( 15,552 ) 12,359 ( 15,552 ) Accumulated other comprehensive loss: Beginning balances ( 4,854 ) ( 6,789 ) ( 5,571 ) ( 7,172 ) Other comprehensive income/(loss) ( 521 ) 426 196 809 Ending balances ( 5,375 ) ( 6,363 ) ( 5,375 ) ( 6,363 ) Total shareholders’ equity, ending balances $ 106,491 $ 66,796 $ 106,491 $ 66,796 Dividends and dividend equivalents declared per share or RSU $ 0.26 $ 0.25 $ 0.52 $ 0.50 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2026 Form 10-Q | 4 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended March 28, 2026 March 29, 2025 Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances $ 35,934 $ 29,943 Operating activities: Net income 71,675 61,110 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 6,653 5,741 Share-based compensation expense 7,122 6,512 Other ( 1,717 ) ( 2,217 ) Changes in operating assets and liabilities: Accounts receivable, net 9,295 7,266 Vendor non-trade receivables 10,008 9,171 Inventories ( 1,084 ) 858 Other current and non-current assets ( 14,329 ) ( 4,371 ) Accounts payable ( 12,297 ) ( 14,604 ) Other current and non-current liabilities 7,301 ( 15,579 ) Cash generated by operating activities 82,627 53,887 Investing activities: Purchases of marketable securities ( 32,432 ) ( 12,442 ) Proceeds from maturities of marketable securities 18,691 26,587 Proceeds from sales of marketable securities 8,615 5,210 Payments for acquisition of property, plant and equipment ( 4,344 ) ( 6,011 ) Other ( 1,584 ) ( 635 ) Cash generated by/(used in) investing activities ( 11,054 ) 12,709 Financing activities: Payments for taxes related to net share settlement of equity awards ( 3,252 ) ( 3,205 ) Payments for dividends and dividend equivalents ( 7,743 ) ( 7,614 ) Repurchases of common stock ( 36,989 ) ( 49,504 ) Repayments of term debt ( 7,914 ) ( 4,009 ) Repayments of commercial paper, net ( 5,911 ) ( 3,968 ) Other ( 126 ) ( 77 ) Cash used in financing activities ( 61,935 ) ( 68,377 ) 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 $ 45,572 $ 28,162 Supplemental cash flow disclosure: Cash paid for income taxes, net $ 20,397 $ 31,683 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q2 2026 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. 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”). 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 2026 and 2025 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 28, 2026 and March 29, 2025 (in millions): Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 iPhone ® $ 56,994 $ 46,841 $ 142,263 $ 115,979 Mac ® 8,399 7,949 16,785 16,936 iPad ® 6,914 6,402 15,509 14,490 Wearables, Home and Accessories 7,901 7,522 19,394 19,269 Services 30,976 26,645 60,989 52,985 Total net sales $ 111,184 $ 95,359 $ 254,940 $ 219,659 Portion of total net sales that was included in deferred revenue as of the beginning of the period $ 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- 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. Apple Inc. | 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- 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 March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Numerator: Net income $ 29,578 $ 24,780 $ 71,675 $ 61,110 Denominator: Weighted-average basic shares outstanding 14,673,278 14,994,082 14,710,718 15,037,903 Effect of dilutive share-based awards 52,595 62,051 57,397 65,596 Weighted-average diluted shares 14,725,873 15,056,133 14,768,115 15,103,499 Basic earnings per share $ 2.02 $ 1.65 $ 4.87 $ 4.06 Diluted earnings per share $ 2.01 $ 1.65 $ 4.85 $ 4.05 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 28, 2026 and September 27, 2025 (in millions): March 28, 2026 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 29,740 $ — $ — $ 29,740 $ 29,740 $ — $ — Level 1: Money market funds 6,588 — — 6,588 6,588 — — Mutual funds 821 128 ( 14 ) 935 — 935 — Subtotal 7,409 128 ( 14 ) 7,523 6,588 935 — Level 2 (1) : U.S. Treasury securities 18,650 14 ( 254 ) 18,410 2,935 4,174 11,301 U.S. agency securities 7,483 — ( 112 ) 7,371 2,923 2,470 1,978 Non-U.S. government securities 5,906 45 ( 493 ) 5,458 — 576 4,882 Certificates of deposit and time deposits 3,263 — — 3,263 2,987 276 — Commercial paper 3,628 — — 3,628 399 3,229 — Corporate debt securities 48,111 83 ( 982 ) 47,212 — 11,042 36,170 Municipal securities 122 — ( 1 ) 121 — 95 26 Mortgage- and asset-backed securities 25,106 64 ( 1,301 ) 23,869 — 138 23,731 Subtotal 112,269 206 ( 3,143 ) 109,332 9,244 22,000 78,088 Total $ 149,418 $ 334 $ ( 3,157 ) $ 146,595 $ 45,572 $ 22,935 $ 78,088 Apple Inc. | Q2 2026 Form 10-Q | 7 September 27, 2025 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 28,267 $ — $ — $ 28,267 $ 28,267 $ — $ — Level 1: Money market funds 5,272 — — 5,272 5,272 — — Mutual funds 679 177 ( 2 ) 854 — 854 — Subtotal 5,951 177 ( 2 ) 6,126 5,272 854 — Level 2 (1) : U.S. Treasury securities 16,074 56 ( 282 ) 15,848 1,190 3,712 10,946 U.S. agency securities 5,269 — ( 149 ) 5,120 251 2,456 2,413 Non-U.S. government securities 6,586 111 ( 424 ) 6,273 — 855 5,418 Certificates of deposit and time deposits 917 — — 917 904 — 13 Commercial paper 100 — — 100 50 50 — Corporate debt securities 47,210 266 ( 916 ) 46,560 — 10,623 35,937 Municipal securities 207 — ( 2 ) 205 — 119 86 Mortgage- and asset-backed securities 24,130 126 ( 1,252 ) 23,004 — 94 22,910 Subtotal 100,493 559 ( 3,025 ) 98,027 2,395 17,909 77,723 Total $ 134,711 $ 736 $ ( 3,027 ) $ 132,420 $ 35,934 $ 18,763 $ 77,723 (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 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 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 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. 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. Apple Inc. | Q2 2026 Form 10-Q | 8 The notional amounts of the Company’s outstanding derivative instruments as of March 28, 2026 and September 27, 2025, were as follows (in millions): March 28, 2026 September 27, 2025 Derivative instruments designated as accounting hedges: Foreign exchange contracts $ 57,963 $ 62,647 Interest rate contracts $ 10,625 $ 12,875 Derivative instruments not designated as accounting hedges: Foreign exchange contracts $ 96,341 $ 109,079 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 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. 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 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 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 March 28, 2026 September 27, 2025 Gross property, plant and equipment $ 127,557 $ 125,848 Accumulated depreciation ( 77,441 ) ( 76,014 ) Total property, plant and equipment, net $ 50,116 $ 49,834 Intangible Assets, Net March 28, 2026 September 27, 2025 Gross intangible assets $ 37,767 $ 24,950 Accumulated amortization ( 11,970 ) ( 11,649 ) Total intangible assets, net 25,797 13,301 Less: Current portion of intangible assets, net ( 4,463 ) ( 2,208 ) Non-current portion of intangible assets, net $ 21,334 $ 11,093 Apple Inc. | Q2 2026 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 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 March 28, 2026 March 29, 2025 Maturities 90 days or less: Repayments of commercial paper, net $ ( 2,123 ) $ ( 3,968 ) Maturities greater than 90 days: Repayments of commercial paper ( 3,788 ) — Total repayments of commercial paper, net $ ( 5,911 ) $ ( 3,968 ) Term Debt 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 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. 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 restricted stock unit (“RSU”) activity and related information for the six months ended March 28, 2026, is as follows: Number of RSUs (in thousands) Weighted-Average Grant-Date Fair Value Per RSU Balance as of September 27, 2025 151,574 $ 189.75 RSUs granted 66,083 $ 256.04 RSUs vested ( 37,502 ) $ 174.38 RSUs forfeited ( 6,170 ) $ 210.31 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. Apple Inc. | 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- and six-month periods ended March 28, 2026 and March 29, 2025 (in millions): Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 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 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 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, 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 2027 7,343 2028 6,130 2029 5,394 2030 5,281 Thereafter 549 Total $ 27,691 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. Apple Inc. | Q2 2026 Form 10-Q | 11 Note 10 – Segment Information 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 China Japan Rest of Asia Pacific Corporate Total Net sales $ 45,093 $ 28,055 $ 20,497 $ 8,401 $ 9,138 $ — $ 111,184 Cost of sales ( 23,114 ) ( 13,756 ) ( 10,633 ) ( 4,267 ) ( 4,633 ) — ( 56,403 ) Research and development — — — — — ( 11,419 ) ( 11,419 ) Selling and marketing ( 2,606 ) ( 1,247 ) ( 675 ) ( 295 ) ( 378 ) — ( 5,201 ) General and administrative — — — — — ( 2,276 ) ( 2,276 ) Operating income/(loss) $ 19,373 $ 13,052 $ 9,189 $ 3,839 $ 4,127 $ ( 13,695 ) $ 35,885 Three Months Ended March 29, 2025 Americas Europe Greater China Japan Rest of Asia Pacific Corporate Total Net sales $ 40,315 $ 24,454 $ 16,002 $ 7,298 $ 7,290 $ — $ 95,359 Cost of sales ( 21,094 ) ( 13,025 ) ( 8,794 ) ( 3,610 ) ( 3,969 ) — ( 50,492 ) Research and development — — — — — ( 8,550 ) ( 8,550 ) Selling and marketing ( 2,447 ) ( 1,113 ) ( 582 ) ( 254 ) ( 335 ) — ( 4,731 ) General and administrative — — — — — ( 1,997 ) ( 1,997 ) 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 China 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 China 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 Apple Inc. | Q2 2026 Form 10-Q | 12