Apple reported QQ2 2025 revenue of $95.359B, marking a QoQ decline from the prior quarter’s $124.30B but a modest YoY increase of 0.45%. The gross margin stood at approximately 47.05% (gross profit of $44.867B), underscoring stable profitability amid softer top-line momentum. Operating income reached $29.589B with an operating margin of 31.03%, yielding a solid earnings base despite quarter-to-quarter revenue headwinds. Net income was $24.78B, delivering an EPS of $1.65. The company generated strong operating cash flow of $23.952B and free cash flow of $20.881B, supporting aggressive capital return activity, including $25.898B in share repurchases and $3.758B in dividends.
From a balance sheet perspective, Apple maintains a robust asset base and substantial liquidity. Total assets reached $331.233B, with current assets of $118.674B and total current liabilities of $144.571B, resulting in a current ratio of 0.821 and a quick ratio of 0.778. The company reports a negative cash conversion cycle of about -38 days, reflecting efficient working capital management. Cash and short-term investments together total approximately $48.498B, while total debt stands at $98.186B and net debt is $70.024B, indicating meaningful leverage but ample liquidity given sizable cash generation. Capital allocation remains aggressively biased toward buybacks, with $25.898B spent on repurchases, complemented by $3.758B in dividends; financing activity shows a net cash outflow of around $29.006B for the period.
Overall, QQ2 2025 demonstrates Apple’s continued earnings quality, cash generation, and balance sheet strength, even as revenue pacing moderates. The key questions for investors are the durability of Services-driven margin resilience, the trajectory of iPhone cycle dynamics, and how ongoing capital returns align with long-term growth opportunities in Services and potential new hardware categories.