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 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Net sales: Products $ 78,678 $ 66,613 $ 272,629 $ 233,287 Services 30,739 27,423 91,728 80,408 Total net sales 109,417 94,036 364,357 313,695 Cost of sales: Products 47,153 43,620 163,810 147,097 Services 7,494 6,698 21,765 19,738 Total cost of sales 54,647 50,318 185,575 166,835 Gross margin 54,770 43,718 178,782 146,860 Operating expenses: Research and development 11,729 8,866 34,035 25,684 Selling, general and administrative 7,346 6,650 22,315 20,553 Total operating expenses 19,075 15,516 56,350 46,237 Operating income 35,695 28,202 122,432 100,623 Other income/(expense), net 572 ( 171 ) 670 ( 698 ) Income before provision for income taxes 36,267 28,031 123,102 99,925 Provision for income taxes 6,478 4,597 21,638 15,381 Net income $ 29,789 $ 23,434 $ 101,464 $ 84,544 Earnings per share: Basic $ 2.03 $ 1.57 $ 6.91 $ 5.64 Diluted $ 2.02 $ 1.57 $ 6.88 $ 5.62 Shares used in computing earnings per share: Basic 14,656,110 14,902,886 14,692,515 14,992,898 Diluted 14,714,676 14,948,179 14,750,302 15,051,726 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 2026 Form 10-Q | 1 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Net income $ 29,789 $ 23,434 $ 101,464 $ 84,544 Other comprehensive income/(loss): Change in foreign currency translation, net of tax ( 24 ) 449 ( 116 ) ( 86 ) Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivative instruments 356 ( 523 ) 729 810 Adjustment for net (gains)/losses realized and included in net income 67 ( 571 ) 348 ( 415 ) Total change in unrealized gains/losses on derivative instruments 423 ( 1,094 ) 1,077 395 Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities 441 640 57 90 Adjustment for net (gains)/losses realized and included in net income 27 ( 1 ) 45 404 Total change in unrealized gains/losses on marketable debt securities 468 639 102 494 Total other comprehensive income/(loss) 867 ( 6 ) 1,063 803 Total comprehensive income $ 30,656 $ 23,428 $ 102,527 $ 85,347 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 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) June 27, 2026 September 27, 2025 ASSETS: Current assets: Cash and cash equivalents $ 39,544 $ 35,934 Marketable securities 22,855 18,763 Accounts receivable, net 31,398 39,777 Vendor non-trade receivables 27,509 33,180 Inventories 11,092 5,718 Other current assets 17,420 14,585 Total current assets 149,818 147,957 Non-current assets: Marketable securities 84,118 77,723 Property, plant and equipment, net 51,431 49,834 Intangible assets, net 20,342 11,093 Other non-current assets 77,557 72,634 Total non-current assets 233,448 211,284 Total assets $ 383,266 $ 359,241 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 64,525 $ 69,860 Other current liabilities 62,259 66,387 Deferred revenue 9,538 9,055 Commercial paper 1,997 7,979 Term debt 11,007 12,350 Total current liabilities 149,326 165,631 Non-current liabilities: Term debt 71,340 78,328 Other non-current liabilities 55,080 41,549 Total non-current liabilities 126,420 119,877 Total liabilities 275,746 285,508 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, $ 0.00001 par value: 50,400,000 shares authorized; 14,608,963 and 14,773,260 shares issued and outstanding, respectively 100,702 93,568 Retained earnings/(Accumulated deficit) 11,326 ( 14,264 ) Accumulated other comprehensive loss ( 4,508 ) ( 5,571 ) Total shareholders’ equity 107,520 73,733 Total liabilities and shareholders’ equity $ 383,266 $ 359,241 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 2026 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 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Total shareholders’ equity, beginning balances $ 106,491 $ 66,796 $ 73,733 $ 56,950 Common stock and additional paid-in capital: Beginning balances 99,507 88,711 93,568 83,276 Common stock issued — — 878 825 Common stock withheld related to net share settlement of equity awards ( 2,396 ) ( 2,163 ) ( 4,704 ) ( 4,260 ) Share-based compensation 3,591 3,258 10,960 9,965 Ending balances 100,702 89,806 100,702 89,806 Retained earnings/(Accumulated deficit): Beginning balances 12,359 ( 15,552 ) ( 14,264 ) ( 19,154 ) Net income 29,789 23,434 101,464 84,544 Dividends and dividend equivalents declared ( 3,998 ) ( 3,912 ) ( 11,733 ) ( 11,525 ) Common stock withheld related to net share settlement of equity awards ( 875 ) ( 411 ) ( 1,899 ) ( 1,598 ) Common stock repurchased ( 25,949 ) ( 21,166 ) ( 62,242 ) ( 69,874 ) Ending balances 11,326 ( 17,607 ) 11,326 ( 17,607 ) Accumulated other comprehensive loss: Beginning balances ( 5,375 ) ( 6,363 ) ( 5,571 ) ( 7,172 ) Other comprehensive income/(loss) 867 ( 6 ) 1,063 803 Ending balances ( 4,508 ) ( 6,369 ) ( 4,508 ) ( 6,369 ) Total shareholders’ equity, ending balances $ 107,520 $ 65,830 $ 107,520 $ 65,830 Dividends and dividend equivalents declared per share or RSU $ 0.27 $ 0.26 $ 0.79 $ 0.76 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 2026 Form 10-Q | 4 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Nine Months Ended June 27, 2026 June 28, 2025 Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances $ 35,934 $ 29,943 Operating activities: Net income 101,464 84,544 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 9,973 8,571 Share-based compensation expense 10,523 9,680 Other ( 2,037 ) ( 1,748 ) Changes in operating assets and liabilities: Accounts receivable, net 8,316 5,685 Vendor non-trade receivables 5,671 13,555 Inventories ( 5,461 ) 1,223 Other current and non-current assets ( 16,266 ) ( 6,116 ) Accounts payable ( 5,203 ) ( 18,479 ) Other current and non-current liabilities 10,016 ( 15,161 ) Cash generated by operating activities 116,996 81,754 Investing activities: Purchases of marketable securities ( 48,752 ) ( 17,591 ) Proceeds from maturities of marketable securities 26,504 35,036 Proceeds from sales of marketable securities 12,016 10,785 Payments for acquisition of property, plant and equipment ( 6,799 ) ( 9,473 ) Other ( 1,780 ) ( 975 ) Cash generated by/(used in) investing activities ( 18,811 ) 17,782 Financing activities: Payments for taxes related to net share settlement of equity awards ( 6,462 ) ( 5,719 ) Payments for dividends and dividend equivalents ( 11,778 ) ( 11,559 ) Repurchases of common stock ( 62,094 ) ( 70,579 ) Proceeds from issuance of term debt, net — 4,481 Repayments of term debt ( 8,146 ) ( 9,682 ) Repayments of commercial paper, net ( 5,911 ) ( 65 ) Other ( 184 ) ( 87 ) Cash used in financing activities ( 94,575 ) ( 93,210 ) Increase in cash, cash equivalents, and restricted cash and cash equivalents 3,610 6,326 Cash, cash equivalents, and restricted cash and cash equivalents, ending balances $ 39,544 $ 36,269 Supplemental cash flow disclosure: Cash paid for income taxes, net $ 26,555 $ 37,332 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. | Q3 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 nine-month periods ended June 27, 2026 and June 28, 2025 (in millions): Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 iPhone ® $ 54,252 $ 44,582 $ 196,515 $ 160,561 Mac ® 10,352 8,046 27,137 24,982 iPad ® 6,191 6,581 21,700 21,071 Wearables, Home and Accessories 7,883 7,404 27,277 26,673 Services 30,739 27,423 91,728 80,408 Total net sales $ 109,417 $ 94,036 $ 364,357 $ 313,695 Portion of total net sales that was included in deferred revenue as of the beginning of the period $ 4,086 $ 4,015 $ 7,260 $ 6,958 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 nine-month periods ended June 27, 2026 and June 28, 2025, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales. As of June 27, 2026 and September 27, 2025, the Company had total deferred revenue of $ 14.9 billion and $ 13.7 billion, respectively. As of June 27, 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. | Q3 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 27, 2026 and June 28, 2025 (net income in millions and shares in thousands): Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Numerator: Net income $ 29,789 $ 23,434 $ 101,464 $ 84,544 Denominator: Weighted-average basic shares outstanding 14,656,110 14,902,886 14,692,515 14,992,898 Effect of dilutive share-based awards 58,566 45,293 57,787 58,828 Weighted-average diluted shares 14,714,676 14,948,179 14,750,302 15,051,726 Basic earnings per share $ 2.03 $ 1.57 $ 6.91 $ 5.64 Diluted earnings per share $ 2.02 $ 1.57 $ 6.88 $ 5.62 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 27, 2026 and September 27, 2025 (in millions): June 27, 2026 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 26,777 $ — $ — $ 26,777 $ 26,777 $ — $ — Level 1: Money market funds 7,840 — — 7,840 7,840 — — Mutual funds 873 222 ( 1 ) 1,094 — 1,094 — Subtotal 8,713 222 ( 1 ) 8,934 7,840 1,094 — Level 2 (1) : U.S. Treasury securities 20,398 11 ( 253 ) 20,156 735 4,034 15,387 U.S. agency securities 6,176 — ( 100 ) 6,076 988 2,898 2,190 Non-U.S. government securities 5,207 71 ( 349 ) 4,929 — 299 4,630 Certificates of deposit and time deposits 3,025 — — 3,025 2,521 504 — Commercial paper 3,828 — — 3,828 683 3,145 — Corporate debt securities 49,679 121 ( 709 ) 49,091 — 10,808 38,283 Mortgage- and asset-backed securities 24,828 65 ( 1,192 ) 23,701 — 73 23,628 Subtotal 113,141 268 ( 2,603 ) 110,806 4,927 21,761 84,118 Total $ 148,631 $ 490 $ ( 2,604 ) $ 146,517 $ 39,544 $ 22,855 $ 84,118 Apple Inc. | Q3 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 June 27, 2026, 81 % of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 16 % between 5 and 10 years, and 3 % greater than 10 years. As of June 27, 2026, 14 % of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 21 % 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 June 27, 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. | Q3 2026 Form 10-Q | 8 The notional amounts of the Company’s outstanding derivative instruments as of June 27, 2026 and September 27, 2025, were as follows (in millions): June 27, 2026 September 27, 2025 Derivative instruments designated as accounting hedges: Foreign exchange contracts $ 61,313 $ 62,647 Interest rate contracts $ 10,625 $ 12,875 Derivative instruments not designated as accounting hedges: Foreign exchange contracts $ 64,053 $ 109,079 As of June 27, 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 June 27, 2026 and September 27, 2025, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 18 % and 12 %, respectively. The Company’s third-party cellular network carriers accounted for 27 % and 34 % of total trade receivables as of June 27, 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 June 27, 2026, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted f or 47 % and 22 %. 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 27, 2026 and September 27, 2025 (in millions): Inventories June 27, 2026 September 27, 2025 Components $ 7,645 $ 2,124 Finished goods 3,447 3,594 Total inventories $ 11,092 $ 5,718 Property, Plant and Equipment, Net June 27, 2026 September 27, 2025 Gross property, plant and equipment $ 128,175 $ 125,848 Accumulated depreciation ( 76,744 ) ( 76,014 ) Total property, plant and equipment, net $ 51,431 $ 49,834 Apple Inc. | Q3 2026 Form 10-Q | 9 Intangible Assets, Net June 27, 2026 September 27, 2025 Gross intangible assets $ 38,220 $ 24,950 Accumulated amortization ( 12,803 ) ( 11,649 ) Total intangible assets, net 25,417 13,301 Less: Current portion of intangible assets, net ( 5,075 ) ( 2,208 ) Non-current portion of intangible assets, net $ 20,342 $ 11,093 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 27, 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 nine months ended June 27, 2026 and June 28, 2025 (in millions): Nine Months Ended June 27, 2026 June 28, 2025 Maturities 90 days or less: Repayments of commercial paper, net $ ( 2,123 ) $ ( 5,690 ) Maturities greater than 90 days: Proceeds from commercial paper — 5,625 Repayments of commercial paper ( 3,788 ) — Proceeds from/(Repayments of) commercial paper, net ( 3,788 ) 5,625 Total repayments of commercial paper, net $ ( 5,911 ) $ ( 65 ) Term Debt As of June 27, 2026 and September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $ 82.3 billion and $ 90.7 billion, respectively (collectively the “Notes”). As of June 27, 2026 and September 27, 2025, the fair value of the Company’s Notes, based on Level 2 inputs, was $ 71.2 billion and $ 80.4 billion, respectively. Note 7 – Shareholders’ Equity Share Repurchase Program During the nine months ended June 27, 2026, the Company repurchased 215 million shares of its common stock for $ 61.8 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 (“Exchange Act”). Apple Inc. | Q3 2026 Form 10-Q | 10 Note 8 – Share-Based Compensation Restricted Stock Units A summary of the Company’s restricted stock unit (“RSU”) activity and related information for the nine months ended June 27, 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 72,400 $ 258.16 RSUs vested ( 70,594 ) $ 184.72 RSUs forfeited ( 9,418 ) $ 213.67 Balance as of June 27, 2026 143,962 $ 225.06 The total vesting-date fair value of RSUs was $ 8.9 billion and $ 7.0 billion for the three months ended June 27, 2026 and June 28, 2025, respectively, and was $ 18.4 billion and $ 16.3 billion for the nine months ended June 27, 2026 and June 28, 2025, respectively. 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 27, 2026 and June 28, 2025 (in millions): Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Share-based compensation expense $ 3,401 $ 3,168 $ 10,523 $ 9,680 Income tax benefit related to share-based compensation expense $ ( 1,122 ) $ ( 795 ) $ ( 3,217 ) $ ( 2,870 ) As of June 27, 2026, the total unrecognized compensation cost related to outstanding RSUs was $ 26.7 billion, which the Company expects to recognize over a weighted-average period of 2.7 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 June 27, 2026, are as follows (in millions): 2026 (remaining three months) $ 2,053 2027 7,652 2028 6,406 2029 5,421 2030 5,481 Thereafter 615 Total $ 27,628 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. | Q3 2026 Form 10-Q | 11 Note 10 – Segment Information The following tables show information by reportable segment for the three- and nine-month periods ended June 27, 2026 and June 28, 2025 (in millions): Three Months Ended June 27, 2026 Americas Europe Greater China Japan Rest of Asia Pacific Corporate Total Net sales $ 45,781 $ 29,395 $ 18,816 $ 6,554 $ 8,871 $ — $ 109,417 Cost of sales ( 21,507 ) ( 14,732 ) ( 10,771 ) ( 3,310 ) ( 4,327 ) — ( 54,647 ) Research and development — — — — — ( 11,729 ) ( 11,729 ) Selling and marketing ( 2,573 ) ( 1,220 ) ( 639 ) ( 240 ) ( 362 ) — ( 5,034 ) General and administrative — — — — — ( 2,312 ) ( 2,312 ) Operating income/(loss) $ 21,701 $ 13,443 $ 7,406 $ 3,004 $ 4,182 $ ( 14,041 ) $ 35,695 Three Months Ended June 28, 2025 Americas Europe Greater China Japan Rest of Asia Pacific Corporate Total Net sales $ 41,198 $ 24,014 $ 15,369 $ 5,782 $ 7,673 $ — $ 94,036 Cost of sales ( 22,174 ) ( 12,379 ) ( 8,970 ) ( 2,695 ) ( 4,100 ) — ( 50,318 ) Research and development — — — — — ( 8,866 ) ( 8,866 ) Selling and marketing ( 2,513 ) ( 1,134 ) ( 577 ) ( 215 ) ( 330 ) — ( 4,769 ) General and administrative — — — — — ( 1,881 ) ( 1,881 ) Operating income/(loss) $ 16,511 $ 10,501 $ 5,822 $ 2,872 $ 3,243 $ ( 10,747 ) $ 28,202 Nine Months Ended June 27, 2026 Americas Europe Greater China Japan Rest of Asia Pacific Corporate Total Net sales $ 149,403 $ 95,596 $ 64,839 $ 24,368 $ 30,151 $ — $ 364,357 Cost of sales ( 76,470 ) ( 47,549 ) ( 34,434 ) ( 12,088 ) ( 15,034 ) — ( 185,575 ) Research and development — — — — — ( 34,035 ) ( 34,035 ) Selling and marketing ( 7,906 ) ( 3,762 ) ( 2,018 ) ( 824 ) ( 1,122 ) — ( 15,632 ) General and administrative — — — — — ( 6,683 ) ( 6,683 ) Operating income/(loss) $ 65,027 $ 44,285 $ 28,387 $ 11,456 $ 13,995 $ ( 40,718 ) $ 122,432 Nine Months Ended June 28, 2025 Americas Europe Greater China Japan Rest of Asia Pacific Corporate Total Net sales $ 134,161 $ 82,329 $ 49,884 $ 22,067 $ 25,254 $ — $ 313,695 Cost of sales ( 71,763 ) ( 43,447 ) ( 27,523 ) ( 10,698 ) ( 13,404 ) — ( 166,835 ) Research and development — — — — — ( 25,684 ) ( 25,684 ) Selling and marketing ( 7,604 ) ( 3,458 ) ( 1,753 ) ( 749 ) ( 1,037 ) — ( 14,601 ) General and administrative — — — — — ( 5,952 ) ( 5,952 ) Operating income/(loss) $ 54,794 $ 35,424 $ 20,608 $ 10,620 $ 10,813 $ ( 31,636 ) $ 100,623 Apple Inc. | Q3 2026 Form 10-Q | 12