Executive Summary
Apple reported a solid QQ4 2024 performance with revenue of $94.93B, up 4.6% year over year, and flat quarter over quarter. Gross profit reached $43.88B for a gross margin of 46.22%, while operating income was $29.59B (operating margin 31.17%). Net income totaled $14.74B with earnings per diluted share of $0.97. The quarter underscored the durability of Apple’s margin structure, supported by a favorable product mix and ongoing leverage from Services and Wearables, even as overall revenue growth remained modest.
Cash generation remained exceptionally strong, with operating cash flow of $26.81B and free cash flow of $23.90B. Apple also returned substantial capital to shareholders, repurchasing $25.08B of common stock and paying $3.80B in dividends during the period. Cash and short-term investments totaled ~$65.17B with a cash balance of ~$29.94B at period end, while net debt stood at approximately $89.12B, reflecting aggressive capital allocation in a high-multiple equity environment. The balance sheet remains robust, with total assets of $364.98B and stockholders’ equity of $56.95B, supporting sustained R&D investment and ongoing ecosystem investments.
Looking ahead, management commentary (where disclosed) and industry trends point to continued Services strength as a key driver of profitability, alongside a resilient iPhone ecosystem. However, the stock trades at elevated multiples, and macro conditions, regulatory scrutiny, and FX dynamics represent meaningful upside/downside risks. The forward path hinges on Services expansion, product cycle timing, and the company’s ability to monetize its vast installed base without compromising margins.
Key Performance Indicators
Key Insights
Revenue stood at 94.93B for QQ4 2024, up 4.6% YoY and flat QoQ. Gross profit was 43.88B, yielding a gross margin of 46.22%. Operating income reached 29.59B with an operating margin of 31.17%. Net income was 14.74B, a YoY decline of 37.65% (net income margin 15.53%). Earnings per share (diluted) were 0.97, with 15.1719B diluted shares outstanding.
Cash flow and liquidity: Net cash from operating activities 26.81B; capex 2.91B; free cash flow 23.90B. Purchases of investments were 10.58B with 15.1...
Financial Highlights
Revenue stood at 94.93B for QQ4 2024, up 4.6% YoY and flat QoQ. Gross profit was 43.88B, yielding a gross margin of 46.22%. Operating income reached 29.59B with an operating margin of 31.17%. Net income was 14.74B, a YoY decline of 37.65% (net income margin 15.53%). Earnings per share (diluted) were 0.97, with 15.1719B diluted shares outstanding.
Cash flow and liquidity: Net cash from operating activities 26.81B; capex 2.91B; free cash flow 23.90B. Purchases of investments were 10.58B with 15.13B in maturities; net investing cash flow was -1.45B. Financing activities included debt repayments of 4.39B, share repurchases of 25.08B, and dividends paid of 3.80B, resulting in a net cash from financing activities of -24.95B. Net cash change was +3.31B, ending cash and equivalents at 29.94B. Total current assets 152.99B; total assets 364.98B. Total current liabilities 176.39B and total liabilities 308.03B; total stockholders’ equity 56.95B.
Key profitability and efficiency ratios include gross margin 46.22%, operating margin 31.17%, net margin 15.53%, ROA 4.04%, ROE 25.9%, and debt to capitalization around 65.2%. Cash conversion and liquidity metrics remain strong, albeit with a net debt position of ~89.12B driven by aggressive share repurchases and capital returns in a high-multiple equity context.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
94.93B |
4.60% |
0.00% |
| Gross Profit |
43.88B |
3.80% |
0.00% |
| Operating Income |
29.59B |
6.06% |
0.00% |
| Net Income |
14.74B |
-37.65% |
0.00% |
| EPS |
0.97 |
-36.60% |
0.00% |
Key Financial Ratios
operatingProfitMargin
31.2%
operatingCashFlowPerShare
$1.77
freeCashFlowPerShare
$1.58
dividendPayoutRatio
25.8%
Management Commentary
Due to the absence of a provided earnings call transcript in the data, this section summarizes themes typically associated with Apple’s QQ4 2024 discourse and the implications of the financials. Key themes likely emphasized by management (based on the period's results and common communication patterns) include:
- Strategy and growth trajectory: Continued emphasis on Services to diversify revenue and stabilize margins, with ongoing investments in App Store, iCloud, Apple Music, and related platforms to sustain ecosystem stickiness.
- Operations and profitability: Maintained robust gross margins around the mid-40s percent range, supported by favorable product mix and economies of scale; emphasis on sustaining operating leverage amid higher R&D and SG&A investments.
- Capital allocation: Continued emphasis on shareholder value creation through substantial share repurchases and continued dividends, supported by durable free cash flow.
- Market and macro context: Acknowledgement of mixed consumer demand and currency effects, with a focus on sustaining demand through services and wearables alongside iPhone resilience.
- Innovation and pipeline: Expectation of continued ecosystem expansion and device/software integration to preserve premium positioning and pricing power.
Note: Direct quotes from the QQ4 2024 call are not present in the provided transcript data.
Forward Guidance
No explicit numeric forward guidance was provided in the supplied QQ4 2024 data. Based on the results and typical company communications, the qualitative outlook emphasizes:
- Services growth as a key long-term profitability engine, with continued investments in App Store economics, cloud services, and subscription offerings.
- Balanced emphasis on hardware and services mix, aiming to preserve gross margins in the mid-40s and sustain operating margins above ~31% through cost discipline and product mix.
- Capital allocation discipline, with continued buybacks and selective capex aligned to long-term shareholder value. Management typically refrains from promising exact revenue growth targets, instead signaling confidence in ecosystem monetization and margin resilience amid macro uncertainty.
- Key factors investors should monitor: Services growth trajectory, iPhone upgrade cycle timing, product mix stability, supply chain resilience, currency effects, regulatory developments affecting App Store economics, and ongoing capital returns.