Executive Summary
Apple reported QQ2 2025 revenue of $95.359 billion, up 0.45% year-over-year but down 23.28% quarter-over-quarter, reflecting typical seasonality from the prior quarter’s peak. Gross profit reached $44.867 billion with a gross margin of 47.05%, up 2.25% year-over-year, yet down 23.01% quarter-over-quarter due to mix and cost dynamics. Operating income stood at $29.589 billion, yielding an operating margin of 31.03%. Net income was $24.78 billion, delivering a net margin of 25.99% and EPS of $1.65, up 70.10% year-over-year but down 31.54% quarter-over-quarter. The company generated strong operating cash flow of $23.952 billion and free cash flow of $20.881 billion (roughly 21.9% of revenue), underscoring durable cash generation even as quarterly delivery fluctuates. Capital allocation remained aggressive, with $25.898 billion in common stock repurchases and $3.758 billion in dividends, contributing to a net debt position of $70.0 billion despite a liquid asset base of $48.5 billion in cash and short-term investments. On the balance sheet, total assets were $331.233 billion and total liabilities $264.437 billion, with equity of $66.796 billion. Key leverage metrics imply a conservative liquidity posture alongside a leveraged capital structure. Looking ahead, management did not publish explicit forward guidance in the QQ2 2025 release; investors should monitor services growth, iPhone cycle dynamics, supply chain efficiency, and currency effects as key drivers of the intermediate-term outlook.
Key Performance Indicators
QoQ: -30.92% | YoY:-0.01%
QoQ: -31.79% | YoY:68.16%
QoQ: -31.54% | YoY:70.10%
Key Insights
Revenue: $95.359B; YoY +0.45%, QoQ -23.28%; Gross Profit: $44.867B; Gross Margin: 47.05%; YoY +2.25%, QoQ -23.01%; Operating Income: $29.589B; Operating Margin: 31.03%; Net Income: $24.78B; Net Margin: 25.99%; EPS: $1.65; EPS YoY +70.10%, EPS QoQ -31.54%. Cash Flow: Operating Cash Flow $23.952B; Free Cash Flow $20.881B; Capex $3.071B; FCF Margin ~21.9%; Balance Sheet: Cash & Equivalents $28.162B; Short-Term Investments $20.336B; Total Cash & Investments $48.498B; Net Debt $70.024B; Total...
Financial Highlights
Revenue: $95.359B; YoY +0.45%, QoQ -23.28%; Gross Profit: $44.867B; Gross Margin: 47.05%; YoY +2.25%, QoQ -23.01%; Operating Income: $29.589B; Operating Margin: 31.03%; Net Income: $24.78B; Net Margin: 25.99%; EPS: $1.65; EPS YoY +70.10%, EPS QoQ -31.54%. Cash Flow: Operating Cash Flow $23.952B; Free Cash Flow $20.881B; Capex $3.071B; FCF Margin ~21.9%; Balance Sheet: Cash & Equivalents $28.162B; Short-Term Investments $20.336B; Total Cash & Investments $48.498B; Net Debt $70.024B; Total Assets $331.233B; Total Liabilities $264.437B; Equity $66.796B. Returns & Multiples: ROA 7.48%, ROE 37.1%, ROCE 15.9%; P/E 32.96x, P/B 48.91x, P/S 34.26x, Dividend Yield ~0.12%; Asset Turnover 0.288, Inventory Turnover 8.05, Receivables Turnover 1.915, Payables Turnover 0.933; Free Cash Flow per Share $1.393; Operating Cash Flow per Share $1.597; Debt to Capitalization 0.595; Debt to Equity 1.470.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
95.36B |
0.45% |
-23.28% |
| Gross Profit |
44.87B |
2.25% |
-23.01% |
| Operating Income |
29.59B |
-0.01% |
-30.92% |
| Net Income |
24.78B |
68.16% |
-31.79% |
| EPS |
1.65 |
70.10% |
-31.54% |
Key Financial Ratios
operatingProfitMargin
31%
operatingCashFlowPerShare
$1.6
freeCashFlowPerShare
$1.39
dividendPayoutRatio
15.2%
Management Commentary
Note: The earnings call transcript content was not provided in the dataset. As a result, this section cannot extract management quotes or theme-specific insights from the call. When transcript data becomes available, this section should synthesize themes such as strategy execution, product and services roadmap, supply-chain updates, and macro commentary with supporting quotes and context.
Forward Guidance
Explicit forward guidance is not included in the QQ2 2025 release data provided. Macroeconomic headwinds, FX considerations, and ongoing investments in services, wearables, and AI-enabled features are key optionality levers that could influence the trajectory. Investors should monitor: (1) Services growth cadence and operating leverage (expected to sustain mid-teens to low-20s percentage margins if scale accelerates), (2) iPhone mix and average selling price dynamics amid a competitive smartphone market, (3) gross margin resilience in a high-cost environment and potential supply chain improvements, (4) capital allocation framework including buybacks, dividends, and potential opportunistic investments, and (5) currency fluctuations and regulatory developments that could impact margins or capex.