EARNINGS REVIEW
Apple, FY25 Q4 Earnings Results
Historical quarterly report · Results and outlook reflect information available at the time of that release. Actual results from later quarters have not been incorporated into the outlook.
Growth in iPhone and Services produced record September-quarter revenue. The large tax charge in the prior year means net income growth must be distinguished from operating growth.
Assessment · Simultaneous growth in device sales and services is positive. However, the assessment should focus on improvements in revenue, operating income and FCF rather than net income growth inflated by the prior-year tax-charge base, while checking the durability of the new-product cycle.
Key management and company statements
Earnings release · Excerpt from the original“a September quarter revenue record for iPhone and an all-time revenue record for Services”Meaning · iPhone recorded its highest September-quarter revenue, while Services achieved an all-time revenue record.
Context · This earnings-release statement concerns growth in the company’s products and services.
Original statement ↗01 Revenue, operating income and results versus expectations
Year over year · revenue 94.930 → 102.466 B$ (+7.9% · +7.536 B$), operating income 29.591 → 32.427 B$ (+9.6% · +2.836 B$).
Quarter over quarter · revenue 94.036 → 102.466 B$ (+9.0% · +8.430 B$), operating income 28.202 → 32.427 B$ (+15.0% · +4.225 B$), operating margin 30.0% → 31.6% (+1.7%p).
iPhone, Mac and Services drove revenue growth, while iPad was nearly unchanged from the prior year. Wearables, Home and Accessories declined slightly.
02 Earnings sustainability · From operating income to net income
The prior-year FY2024 Q4 included a one-time tax charge related to EU state aid. The company’s adjusted EPS growth of 13% excludes that effect and differs from GAAP net income growth.
- Operating income
- 32.427 B$
- Net non-operating income
- 0.377 B$
- Income tax expense
- −5.338 B$
- Consolidated net income
- 27.466 B$
Net income of 27.466 B$ in the existing quarterly dataset is on a consolidated basis.
03 Cash flow quality · Net income → OCF → FCF
OCF and CapEx are quarterly amounts calculated by subtracting the 9-month cumulative figures from full-year FY2025. FCF calculated as 29.728 B$−3.242 B$ is 26.486 B$.
- Consolidated net income
- 27.466 B$
- Total net adjustments for noncash items, working capital and other items¹
- 2.262 B$
- Operating cash flow
- 29.728 B$
- Cash CapEx
- −3.242 B$
- FCF
- 26.486 B$
¹ Total net adjustments calculated as OCF−net income. This is not a single disclosed line item; it combines noncash items, working capital, classification differences and other adjustments.
FCF versus previous quarter · 24.405 → 26.486 B$, 2.081 B$ improvement.
04 Financial capacity · Net debt and payment obligations
Previous-quarter net cash · 2025-06-28
Cash and current investments 55.372 / Debt 101.698 B$
Current-quarter net cash · 2025-09-27
Cash and current investments 54.697 / Debt 98.657 B$
Net debt improved by 2.366 B$ from the previous quarter. The carrying amount of current debt is 20.329 B$. It may differ from the principal maturity schedule.
Only current marketable securities are added to cash; noncurrent marketable securities are excluded. Consequently, this net cash balance may differ from the company’s broader measure of cash and investments.
Common definition · Cash and current investments = cash equivalents + current investments and deposits. Debt = carrying amount of interest-bearing borrowings (current + noncurrent), excluding separately reported lease liabilities. This differs from total liabilities of 285.508 B$. Restricted cash, noncurrent securities and noncurrent deposits are excluded from cash and current investments.
05 Investment, capital allocation and cash returns
Consider recurring Services revenue alongside the effect of new-product launches, but do not classify Services growth as separately identified AI revenue. Dividends, share repurchases and debt repayment are capital allocation after FCF.
This quarter, cash CapEx/revenue is 3.2% and FCF/revenue is 25.8%. These ratios should not be used as a simple ranking of companies with different business models and FCF definitions.
Quarterly results · CY-aligned presentation
Amounts in B$. Based on the CY-aligned year of this report, the table shows all 4 quarters of the preceding year and the current year to date. Each fiscal quarter is assigned to the CY quarter with the greatest overlap in actual reporting dates, alongside its original FY/CY quarter and start/end dates. Amounts have not been recalculated into actual calendar quarters.
| CY alignment | 2024 · 4 quarters | 2025 · 3 quarters | Change this quarter | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Metric | 2024 total4-quarter totalBalances are period-end | 1QFY24 Q223-12-31 ~24-03-30 | 2QFY24 Q324-03-31 ~24-06-29 | 3QFY24 Q424-06-30 ~24-09-28 | 4QFY25 Q124-09-29 ~24-12-28 | 2025 year to date3-quarter totalBalances are period-end | 1QFY25 Q224-12-29 ~25-03-29 | 2QFY25 Q325-03-30 ~25-06-28 | 3QFY25 Q425-06-29 ~25-09-27 | QoQvs FY25 Q3 | YoYvs FY24 Q4 |
| Revenue | 395.760 | 90.753 | 85.777 | 94.930 | 124.300 | 291.861 | 95.359 | 94.036 | 102.466 | +9.0%+8.430 B$ | +7.9%+7.536 B$ |
| Operating income | 125.675 | 27.900 | 25.352 | 29.591 | 42.832 | 90.218 | 29.589 | 28.202 | 32.427 | +15.0%+4.225 B$ | +9.6%+2.836 B$ |
| Operating margin | 31.8% | 30.7% | 29.6% | 31.2% | 34.5% | 30.9% | 31.0% | 30.0% | 31.6% | +1.7%p | +0.5%p |
| FCF | 98.299 | 20.694 | 26.707 | 23.903 | 26.995 | 71.772 | 20.881 | 24.405 | 26.486 | +2.081 B$ | +2.583 B$ |
| Operating cash flow | 108.294 | 22.690 | 28.858 | 26.811 | 29.935 | 81.547 | 23.952 | 27.867 | 29.728 | +6.7%+1.861 B$ | +10.9%+2.917 B$ |
| Cash CapEx | 9.995 | 1.996 | 2.151 | 2.908 | 2.940 | 9.775 | 3.071 | 3.462 | 3.242 | −6.4%−0.220 B$ | +11.5%+0.334 B$ |
| Net cash | −43.024 | −37.440 | −39.503 | −41.458 | −43.024 | −43.960 | −49.688 | −46.326 | −43.960 | +2.366 B$ | −2.502 B$ |
| Cash and current investments | 53.775 | 67.150 | 61.801 | 65.171 | 53.775 | 54.697 | 48.498 | 55.372 | 54.697 | −1.2%−0.675 B$ | −16.1%−10.474 B$ |
| Debt | 96.799 | 104.590 | 101.304 | 106.629 | 96.799 | 98.657 | 98.186 | 101.698 | 98.657 | −3.0%−3.041 B$ | −7.5%−7.972 B$ |
Indented rows are components or reference items for the parent metric. Net cash = cash and current investments − debt. Depending on the company definition, FCF may include additional adjustments such as lease principal and therefore differ from operating cash flow − cash CapEx. See the cash flow discussion for the detailed definition.
Annual totals and year-to-date totals appear before each year’s quarters. Revenue, earnings and cash flow are sums of quarterly figures; margin is total operating income ÷ total revenue; net cash, cash and debt are balances at the end of the last quarter. Do not treat totals covering different lengths of time as directly comparable annual figures.
Net cash = cash and current investments − debt. A negative figure indicates net debt. Changes in FCF and net cash are shown as absolute amounts in B$. Quarterly figures have not been adjusted to force reconciliation with disclosed annual totals.
Comparison bases, calculation methods and quarterly sources
Calculation and presentation · Amounts in B$. Figures disclosed in millions of US dollars are divided by 1,000 without altering the source values. Where only cumulative cash flows are available, the previous cumulative period within the same fiscal year is deducted. YoY, QoQ and margins are calculated using amounts before display rounding. Earnings changes from negative or 0 bases are expressed as profit/loss transitions and absolute amounts.
Opinions and outlook · Management quotations include original excerpts and their translations. Quotations not identified as earnings-call transcripts come from earnings releases. Interpretations and implications are the author’s judgments. No numerical probability of achieving a target is assigned without quantitative verification.