Apple Inc. 10-Q

Financial Statements (unaudited)

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 To