--- Page 1 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per-share amounts) Three Months Ended Twelve Months Ended September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024 Net sales: Products $ 73,716 $ 69,958 $ 307,003 $ 294,866 Services 28,750 24,972 109,158 96,169 Total net sales (1) 102,466 94,930 416,161 391,035 Cost of sales: Products 47,019 44,566 194,116 185,233 Services 7,106 6,485 26,844 25,119 Total cost of sales 54,125 51,051 220,960 210,352 Gross margin 48,341 43,879 195,201 180,683 Operating expenses: Research and development 8,866 7,765 34,550 31,370 Selling, general and administrative 7,048 6,523 27,601 26,097 Total operating expenses 15,914 14,288 62,151 57,467 Operating income 32,427 29,591 133,050 123,216 Other income/(expense), net 377 19 (321) 269 Income before provision for income taxes 32,804 29,610 132,729 123,485 Provision for income taxes 5,338 14,874 20,719 29,749 Net income $ 27,466 $ 14,736 $ 112,010 $ 93,736 Earnings per share: Basic $ 1.85 $ 0.97 $ 7.49 $ 6.11 Diluted $ 1.85 $ 0.97 $ 7.46 $ 6.08 Shares used in computing earnings per share: Basic 14,815,307 15,171,990 14,948,500 15,343,783 Diluted 14,863,609 15,242,853 15,004,697 15,408,095 (1) Net sales by reportable segment: Americas $ 44,192 $ 41,664 $ 178,353 $ 167,045 Europe 28,703 24,924 111,032 101,328 Greater China 14,493 15,033 64,377 66,952 Japan 6,636 5,926 28,703 25,052 Rest of Asia Pacific 8,442 7,383 33,696 30,658 Total net sales $ 102,466 $ 94,930 $ 416,161 $ 391,035 (1) Net sales by category: iPhone $ 49,025 $ 46,222 $ 209,586 $ 201,183 Mac 8,726 7,744 33,708 29,984 iPad 6,952 6,950 28,023 26,694 Wearables, Home and Accessories 9,013 9,042 35,686 37,005 Services 28,750 24,972 109,158 96,169 Total net sales $ 102,466 $ 94,930 $ 416,161 $ 391,035 --- Page 2 --- Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and par value) September 27, 2025 September 28, 2024 ASSETS: Current assets: Cash and cash equivalents $ 35,934 $ 29,943 Marketable securities 18,763 35,228 Accounts receivable, net 39,777 33,410 Vendor non-trade receivables 33,180 32,833 Inventories 5,718 7,286 Other current assets 14,585 14,287 Total current assets 147,957 152,987 Non-current assets: Marketable securities 77,723 91,479 Property, plant and equipment, net 49,834 45,680 Other non-current assets 83,727 74,834 Total non-current assets 211,284 211,993 Total assets $ 359,241 $ 364,980 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 69,860 $ 68,960 Other current liabilities 66,387 78,304 Deferred revenue 9,055 8,249 Commercial paper 7,979 9,967 Term debt 12,350 10,912 Total current liabilities 165,631 176,392 Non-current liabilities: Term debt 78,328 85,750 Other non-current liabilities 41,549 45,888 Total non-current liabilities 119,877 131,638 Total liabilities 285,508 308,030 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 14,773,260 and 15,116,786 shares issued and outstanding, respectively 93,568 83,276 Accumulated deficit (14,264) (19,154) Accumulated other comprehensive loss (5,571) (7,172) Total shareholders’ equity 73,733 56,950 Total liabilities and shareholders’ equity $ 359,241 $ 364,980 --- Page 3 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Twelve Months Ended September 27, 2025 September 28, 2024 Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances $ 29,943 $ 30,737 Operating activities: Net income 112,010 93,736 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,698 11,445 Share-based compensation expense 12,863 11,688 Other (89) (2,266) Changes in operating assets and liabilities: Accounts receivable, net (6,682) (3,788) Vendor non-trade receivables (347) (1,356) Inventories 1,400 (1,046) Other current and non-current assets (9,197) (11,731) Accounts payable 902 6,020 Other current and non-current liabilities (11,076) 15,552 Cash generated by operating activities 111,482 118,254 Investing activities: Purchases of marketable securities (24,407) (48,656) Proceeds from maturities of marketable securities 40,907 51,211 Proceeds from sales of marketable securities 12,890 11,135 Payments for acquisition of property, plant and equipment (12,715) (9,447) Other (1,480) (1,308) Cash generated by investing activities 15,195 2,935 Financing activities: Payments for taxes related to net share settlement of equity awards (5,960) (5,441) Payments for dividends and dividend equivalents (15,421) (15,234) Repurchases of common stock (90,711) (94,949) Proceeds from issuance of term debt, net 4,481 — Repayments of term debt (10,932) (9,958) Proceeds from/(Repayments of) commercial paper, net (2,032) 3,960 Other (111) (361) Cash used in financing activities (120,686) (121,983) Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents 5,991 (794) Cash, cash equivalents, and restricted cash and cash equivalents, ending balances $ 35,934 $ 29,943 Supplemental cash flow disclosure: Cash paid for income taxes, net $ 43,369 $ 26,102 --- Page 4 --- Apple Inc. RECONCILIATION OF 2024 NON-GAAP TO GAAP RESULTS OF OPERATIONS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per-share amounts) Three Months Ended Twelve Months Ended September 28, 2024 September 28, 2024 As Reported (GAAP) Non-GAAP Adjustments (a) As Adjusted (Non-GAAP) As Reported (GAAP) Non-GAAP Adjustments (a) As Adjusted (Non-GAAP) Income before provision for income taxes $ 29,610 $ — $ 29,610 $ 123,485 $ — $ 123,485 Provision for income taxes 14,874 (10,246) (b) 4,628 29,749 (10,246) (b) 19,503 Net income $ 14,736 $ 10,246 (b) $ 24,982 $ 93,736 $ 10,246 (b) $ 103,982 Diluted earnings per share $ 0.97 $ 0.67 (c) $ 1.64 $ 6.08 $ 0.67 (c) $ 6.75 Shares used in computing diluted earnings per share 15,242,853 — 15,242,853 15,408,095 — 15,408,095 (a) These adjustments reconcile certain of the Company’s GAAP results of operations to its non-GAAP results of operations. The Company believes that the presentation of results excluding the impact of the reversal of the European General Court’s State Aid decision provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results. (b) Non-GAAP adjustments to provision for income taxes and net income to reflect the impact of the reversal of the European General Court’s State Aid decision recognized during the fourth quarter of 2024. On September 10, 2024, the European Court of Justice announced that it had set aside the 2020 judgment of the European General Court and confirmed the European Commission’s 2016 State Aid decision. As a result, during the fourth quarter of 2024 the Company recorded a one-time income tax charge of $10.2 billion, net, which represented $15.8 billion payable to Ireland via release of restricted funds held in escrow, partially offset by a U.S. foreign tax credit of $4.8 billion and a decrease in unrecognized tax benefits of $823 million. For additional information, refer to Note 7, “Income Taxes” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the Company's fiscal 2024 Annual Report on Form 10-K. (c) Represents the per-share impact of the non-GAAP adjustments to net income.