Apple — Income Statement, Cash Flows & Balance Sheet
Is Apple profitable?
Apple's net income surged to a record high, rebounding strongly from a one-time tax charge that depressed last year's earnings.
| Metric | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Total net sales ($M) | $383,285 | $391,035 | $416,161 | +6.4% |
| Gross margin ($M) | $169,148 | $180,683 | $195,201 | +8.0% |
| Gross margin % | 44.1% | 46.2% | 46.9% | +0.7 pts |
| Provision for income taxes ($M) | $16,741 | $29,749 | $20,719 | -30.4% |
| Net income ($M) | $96,995 | $93,736 | $112,010 | +19.5% |
| Diluted EPS | $6.13 | $6.08 | $7.46 | +22.7% |
FY2024's tax bill included a one-time $10.2 billion charge related to a European Commission ruling on Irish state aid, which artificially depressed that year's net income. Stripping that distortion aside, the underlying business improved meaningfully: revenue grew, gross margins expanded, and earnings per share jumped — helped in part by a shrinking share count from ongoing buybacks.
Where does Apple's revenue come from?
Services is Apple's fastest-growing and highest-margin engine, while iPhone remains the dominant revenue source.
| Segment | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| iPhone ($M) | $200,583 | $201,183 | $209,586 | +4.2% |
| Services ($M) | $85,200 | $96,169 | $109,158 | +13.5% |
| Mac ($M) | $29,357 | $29,984 | $33,708 | +12.4% |
| iPad ($M) | $28,300 | $26,694 | $28,023 | +5.0% |
| Wearables, Home & Accessories ($M) | $39,845 | $37,005 | $35,686 | -3.6% |
Greater China was the only geography to shrink, while Americas and Europe drove growth.
| Region | FY2024 Net Sales ($M) | FY2025 Net Sales ($M) | Change |
|---|---|---|---|
| Americas | $167,045 | $178,353 | +6.8% |
| Europe | $101,328 | $111,032 | +9.6% |
| Greater China | $66,952 | $64,377 | -3.8% |
| Japan | $25,052 | $28,703 | +14.6% |
| Rest of Asia Pacific | $30,658 | $33,696 | +9.9% |
Services — which carries a materially higher gross margin than hardware — is growing at more than three times the rate of iPhone, making it increasingly important to Apple's overall profitability. Greater China's continued decline is a notable soft spot worth monitoring.
Does Apple generate cash?
Apple is a cash-generation machine, returning almost all of it to shareholders through buybacks and dividends.
| Metric | FY2023 | FY2024 | FY2025 | Change (FY24→FY25) |
|---|---|---|---|---|
| Cash from operations ($M) | $110,543 | $118,254 | $111,482 | -5.7% |
| Capital expenditures ($M) | $(10,959) | $(9,447) | $(12,715) | +34.6% |
| Free cash flow (GAAP est.) ($M) | ~$99,584 | ~$108,807 | ~$98,767 | -9.2% |
| Share repurchases ($M) | $(77,550) | $(94,949) | $(90,711) | -4.5% |
| Dividends paid ($M) | $(15,025) | $(15,234) | $(15,421) | +1.2% |
Operating cash flow dipped slightly and capital spending rose — largely reflecting infrastructure investment — compressing free cash flow (operating cash minus capex). Even so, Apple returned over $106 billion to shareholders in FY2025, comfortably funded by its operations.
How strong is Apple's balance sheet?
Apple carries significant debt, but its liquid asset portfolio and earnings power make it highly manageable.
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Cash & cash equivalents ($M) | $29,943 | $35,934 | +20.0% |
| Marketable securities — current & non-current ($M) | $126,707 | $96,486 | -23.8% |
| Total term debt ($M) | $96,662 | $90,678 | -6.2% |
| Total liabilities ($M) | $308,030 | $285,508 | -7.3% |
| Total shareholders' equity ($M) | $56,950 | $73,733 | +29.5% |
The drop in marketable securities largely reflects the $15.8 billion Irish state aid payment (previously held in escrow) and net portfolio maturities being deployed into buybacks. Total debt is declining steadily, and Apple meaningfully strengthened its equity position this year. The balance sheet is in better shape than it appears at first glance.