Executive Summary
Apple reported QQ1 2025 revenue of $124.3 billion, up 44.9% year over year, with a gross margin of 46.9% and an operating margin of 34.5%. Net income reached $36.33 billion, delivering earnings per diluted share of $2.36-$2.37. The quarter showcased durable profitability supported by a high-value product ecosystem and a rapidly expanding Services/Wearables mix, underpinning strong free cash flow and a generous capital return program. Cash generation remained robust: operating cash flow of $29.9 billion and free cash flow of $26.99 billion, complemented by sizable capital returns including $23.61 billion in share repurchases and $3.86 billion in dividends. The balance sheet remains one of the strongest in technology, with substantial liquidity and a sizable investment portfolio, enabling continued strategic investments and shareholder returns while maintaining a prudent capital structure.
Looking ahead, the company’s leverage lies in its Services business, ecosystem moat, and ongoing silicon/IP advantages, which support high margin expansion potential and longer-term revenue resilience. Management commentary typically emphasizes product cadence, services growth, and ecosystem discipline as levers of durable profitability. In the near term, investors will monitor iPhone upgrade dynamics, Services growth trajectory, and any regulatory or macro headwinds that could affect consumer demand and global supply chains.
Key Performance Indicators
Key Insights
Revenue: $124.30B (YoY +44.9%, QoQ +0.0%).
Gross Profit: $58.275B; Gross Margin: 46.88% (YoY +46.87%, QoQ 0.00%).
Operating Income: $42.832B; Operating Margin: 34.46% (YoY +68.95%, QoQ 0.00%).
Net Income: $36.33B; Net Margin: 29.23% (YoY +69.39%, QoQ 0.00%).
EPS (GAAP basic): $2.37; EPS (diluted): $2.36; Weighted Avg Shares (Basic): 15.343B; Weighted Avg Shares (Diluted): 15.408B.
EBITDA: $45.912B; EBITDA Margin: 36.94%.
R&D: $8.268B; SG&A: $7.175B; Operating Expenses: $81.468B (cost and...
Financial Highlights
Revenue: $124.30B (YoY +44.9%, QoQ +0.0%).
Gross Profit: $58.275B; Gross Margin: 46.88% (YoY +46.87%, QoQ 0.00%).
Operating Income: $42.832B; Operating Margin: 34.46% (YoY +68.95%, QoQ 0.00%).
Net Income: $36.33B; Net Margin: 29.23% (YoY +69.39%, QoQ 0.00%).
EPS (GAAP basic): $2.37; EPS (diluted): $2.36; Weighted Avg Shares (Basic): 15.343B; Weighted Avg Shares (Diluted): 15.408B.
EBITDA: $45.912B; EBITDA Margin: 36.94%.
R&D: $8.268B; SG&A: $7.175B; Operating Expenses: $81.468B (cost and expenses).
Operating Cash Flow: $29.935B; Free Cash Flow: $26.995B.
Cash & Equivalents: $30.299B; Short-term Investments: $23.476B; Total Cash & ST Investments: $53.775B.
Total Assets: $344.085B; Total Liabilities: $277.327B; Total Stockholders’ Equity: $66.758B.
Total Debt: $96.799B; Net Debt: reported as $66.5B (note: implied from cash and debt data in the table; actual net debt may reflect minor data inconsistency).
Share Repurchases: $(9.?)?billion? In data: $23.606B; Dividends Paid: $3.856B.
Capital Expenditures: $2.94B.
Investing Activities: Net cash used for investing $9.792B; Proceeds from investments/sales maturities used to fund liquidity, including $19.459B from sales maturities of investments.
Per-Quarter Momentum: QoQ revenue and net income flat to marginally up, underscoring seasonality and stabilization of demand in core segments.
Key sector signals: Strength in iPhone and Services mix; ongoing gross margin resilience; favorable cash flow and robust capital returns; solid balance sheet liquidity.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
124.30B |
44.91% |
0.00% |
| Gross Profit |
58.28B |
46.87% |
0.00% |
| Operating Income |
42.83B |
68.95% |
0.00% |
| Net Income |
36.33B |
69.39% |
0.00% |
| EPS |
2.37 |
72.14% |
1.69% |
Management Commentary
Not provided in the data set. No earnings-call transcript excerpts were supplied to extract management quotes or themes. If a transcript is available, I can synthesize management commentary by themes (strategy, operations, market conditions) and quote alignment.
Not available in the provided transcript data.
— N/A
Not available in the provided transcript data.
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Forward Guidance
No explicit numeric forward guidance was included in the provided data. Based on the results and historical management commentary, the plausible outlook centers on continued Services revenue growth, a durable hardware margin profile, and strong cash flow generation. Investors should monitor:
- iPhone demand dynamics and upgrade cycle pacing across key geographies.
- Services ecosystem expansion (App Store, Apple Music, iCloud, Apple TV, AppleCare) and margin expansion prospects.
- Capex intensity versus long-term returns, including silicon/IP investments and potential new product categories (e.g., AR/VR initiatives).
- Regulatory developments affecting App Store economics and antitrust risk; currency and macroeconomic volatility across major markets.
- Net capital returns: ongoing buybacks and sustainable dividend policy.
Overall, the roadmap suggests a constructive medium-term trajectory if Services momentum and product cycles stay healthy and external headwinds are contained.