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.