Apple Inc (APC.DE) Q1 2025 Earnings Report

Apple reported a standout QQ1 2025 with robust top-line growth and strong profitability. Revenue reached $124.3 billion, up 44.9% year over year, while net income rose to $36.33 billion, up 69.4% YoY, supported by a gross margin of 46.9% and an operating margin of 34.5%. Earnings per share (diluted) stood at $2.36-$2.37, underscoring the company’s ability to monetize a broad product and services ecosystem. Cash flow metrics remained highly favorable, with operating cash flow of $29.94 billion and free cash flow of $26.99 billion. Apple continued a significant capital return program, repurchasing $23.61 billion of stock and paying $3.86 billion in dividends, while maintaining a solid liquidity position and a large investment portfolio. The balance sheet continues to demonstrate scale and resilience. End-of-period cash and short-term investments total about $53.78 billion, with total cash and cash equivalents of $30.30 billion. Total assets stand at $344.09 billion and total liabilities at $277.33 billion, yielding a stockholders’ equity of $66.76 billion. The company shows a negative cash conversion cycle of roughly 32 days, signaling efficient working capital management and a favorable cash-generating profile alongside substantial non-current investments. Although liquidity ratios are modestly below 1 (current ratio 0.92, quick ratio 0.88), Apple’s extensive liquid assets and recurring cash generation support financial flexibility. Looking ahead, the quarterly metrics imply a durable earnings engine driven by a strong gross margin structure, ongoing Services growth, and a resilient iPhone/eco-system demand. The current valuation remains premium, reflecting Apple’s entrenched ecosystem, brand moat, and expansive cash return model. An investment stance remains constructive with emphasis on sustained Services expansion, product cycle resilience, and disciplined capital allocation as key anchors to monitor.