The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Fortune Global 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

World's Most Admired Companies

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

WMA 2024-Apple

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

WMAC 2023-Apple

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Apple

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company.\n\n–The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.\n–Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.\n–Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.&quot;}" data-sheets-userformat="{&quot;2&quot;:771,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16770457},&quot;11&quot;:4,&quot;12&quot;:0}">The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company. 
<ul> 
 	<li><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company.\n\n–The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.\n–Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.\n–Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.&quot;}" data-sheets-userformat="{&quot;2&quot;:771,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16770457},&quot;11&quot;:4,&quot;12&quot;:0}">The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.</li> 
 	<li><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company.\n\n–The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.\n–Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.\n–Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.&quot;}" data-sheets-userformat="{&quot;2&quot;:771,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16770457},&quot;11&quot;:4,&quot;12&quot;:0}">Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.</li> 
 	<li><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company.\n\n–The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.\n–Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.\n–Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.&quot;}" data-sheets-userformat="{&quot;2&quot;:771,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16770457},&quot;11&quot;:4,&quot;12&quot;:0}">Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.</li> 
</ul>

The 300 companies on this list are transforming industries from the inside out.

The companies on this list are mobilizing the creative tools of capitalism to help solve social problems.

CTW-2023-Apple_Carbon_Neutral_infographic

The eighth-biggest company in the world by revenue is rapidly going back to the basics of sustainability—reduce, reuse, and recycle. In recent years, Apple has made it a priority to build out its environmental efforts, from reducing the plastic in its packaging to developing robots that better recover materials from discarded electronics. It plans for every product it makes to be carbon-neutral by 2030. Last year, 20% of materials in Apple products were from recycled or renewable sources, and the company intends to eventually reach 100%. The company recently announced its first-ever carbon-neutral Apple Watch and discontinued the use of leather in its product lines. Since 2015, the iPhone maker has cut emissions by more than 45% while its revenue increased by 68%, and its corporate operations are fully carbon-neutral.

Change the World

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Apple

The maker of personal computers, tablets, and other devices saw particularly strong gains with its smartphones and entertainment products this year. Apple brought in a Fortune 500 record $99.8 billion in profit last year, and is the most profitable company on the list for the eighth time in nine years. 
<ul> 
 	<li>The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.</li> 
 	<li>Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.</li> 
 	<li>Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC-2022-01-Apple

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

G500 2022-07-Apple

Despite facing global setbacks, Apple hit multiple positive milestones in 2021. After many of its factories and those of its suppliers were shut down in China owing to COVID, Apple was forced to rethink its supply chain. The global chip shortage added further pressure, costing Apple billions in revenue. But after the company switched to designing more chip components in-house, sales picked up. And Apple finished the year with a gargantuan $94 billion in profits—outperforming every other U.S. company on that front. Apple also gained significant market share in the U.S. personal computing market with its Mac lineup, bringing in a record $37.4 billion in sales. In entertainment, the company made headlines at the Oscars after Apple TV+ became the first streaming service to win the coveted Best Picture award, for its coming-of-age drama CODA. Apple remained the big dog of the Trillion-Dollar Club, too: Its market valuation briefly topped $3 trillion in January 2022, though by August it had receded to a mere $2.4 trillion—still higher than any other publicly traded company. Not everything was rosy for CEO Tim Cook: In early 2022, he faced considerable employee backlash for receiving a hefty $99 million pay package in 2021, and the company has been forced to delay its return-to-office plans.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Apple

Despite facing global setbacks, Apple hit multiple positive milestones in 2021. After many of its factories and those of its suppliers were shut down in China owing to COVID, Apple was forced to rethink its supply chain. The global chip shortage added further pressure, costing Apple billions in revenue. But after the company switched to designing more chip components in-house, sales picked up. And Apple finished the year with a gargantuan $94 billion in profits—outperforming every other U.S. company on that front. Apple also gained significant market share in the U.S. personal computing market with its Mac lineup, bringing in a record $37.4 billion in sales. In entertainment, the company made headlines at the Oscars after Apple TV+ became the first streaming service to win the coveted Best Picture award, for its coming-of-age drama CODA. Apple remained the big dog of the Trillion Dollar Club, too: Its market valuation briefly topped $3 trillion in January 2022, though by May it had receded to a mere $2.7 trillion—still higher than any other publicly traded company. Not everything was rosy for CEO Tim Cook: In early 2022, he faced considerable employee backlash for his hefty $99 million pay package in 2021, and many Apple staff were disgruntled with the company’s return-to-office plans.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-01-Apple

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-006-Apple

The pandemic created challenges and opportunities for Apple. CEO Tim Cook had to close stores and send home engineers. But with Apple customers worldwide working and learning from home, iPad and Macintosh computer sales skyrocketed to their highest levels ever. And fiscal-year revenue hit an all-time record too, of $275 billion. That helped Apple’s stock price soar; it gained 80.7% in 2020. As that year wound down, regulators fixed their sights on Apple for potentially abusing its power over the iOS app store. A House Judiciary antitrust subcommittee report in October concluded that Apple “exerts monopoly power” in its app store to harm competition and increase prices for consumers. Meanwhile, testimony in an antitrust lawsuit filed by Fortnite developer Epic Games will likely increase pressure on legislators to limit Apple’s power.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-03-Apple

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-012-Apple

Mighty Apple dipped a smidge in 2019, down 2% to $260 billion in sales. The computer and phone maker’s ability to make money cushioned the blow. Apple earned $55 billion. Three categories tell the story of Apple’s sales doldrums. iPhone sales, 55% of Apple’s total, fell 14%. Increases in sales of services like streaming and subscriptions, 18% of the total, grew 16%. And wearables (AirPods and Watches) and other non-phone accessories (iPods, HomePods, and Beats products) leapt 41%, but account for only 9% of the pie.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-004-Apple

Mighty Apple dipped a smidge in 2019, both in terms of sales, down 2% to $260 billion, and in its ranking, from No. 3 to No. 4. The computer and phone maker’s ability to make money cushioned the blow. Apple earned $55 billion. Three categories tell the story of Apple’s sales doldrums. iPhone sales, 55% of Apple’s total, fell 14%. Increases in sales of services like streaming and subscriptions, 18% of the total, grew 16%. And wearables (AirPods and Watches) and other non-phone accessories (iPods, HomePods, and Beats products) leapt 41%, but account for only 9% of the pie.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

These 52 companies from across the globe are doing well by doing good.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here’s our look at 57 companies that do well by doing good.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here’s our look at 50 companies that do well by doing good.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Shale rules! That’s the lesson of the latest edition of our annual list of public companies with the most stellar three-year profit, revenue, and stock growth. 

100 Fastest-Growing Companies

Fastest-growing Companies

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Change The World

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Apple designs, manufactures, and sells smartphones, personal computers, tablets, wearables, and accessories. Its best-known products include the iPhone, the Mac line of personal computers, iPad tablets, and accessories like the Air Pods and the AppleWatch. The company’s services include Apple Music, which offers on-demand radio stations; Apple News+, a subscription news and magazine service; the streaming service Apple TV+t; and Apple Pay, a cashless payment service. Apple also distributes third-party applications for its products through its App Store.

Q3 2025

Q2 2025

Q1 2025

Apple (AAPL): Company Profile, Stock Price, News, Rankings

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Apple

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Good afternoon and welcome to the Apple Q2 Fiscal Year twenty twenty five Earnings Conference Call. My name is Suhasini Chandramali, Director of Investor Relations. Today's call is being recorded. Speaking first today is Apple's CEO, Tim Cook, and he'll be followed by CFO, Kevin Parekh. After that, we'll open the call to questions from analysts.

Please note that some of the information you'll hear during our discussion today will consist of forward looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, taxes, capital allocation, and future business outlook, including the potential impact of tariffs and other trade measures and macroeconomic conditions on the company's business and results of operations. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in Apple's most recently filed reports on Form 10 Q and Form 10 ks and the Form eight ks filed with the SEC today along with the associated press release. Additional information will also be in our report on Form 10 Q for the quarter ended 03/29/2025 to be filed tomorrow and in other reports and filings we make with the SEC. Apple assumes no obligation to update any forward looking statements, which speak only as of the date they are made.

I'd now like to turn the call over to Tim for introductory remarks.

Thank you, Suhasini. Good afternoon, everyone, and thanks for joining the call. Today we are reporting $95,400,000,000 in revenue, up 5% from a year ago and at the high end of the range we provided last quarter. Diluted EPS was $1.65 up 8% year over year and a March record. Services achieved an all time revenue record growing 12% compared to the prior year.

We also set a number of quarterly records in countries and regions across the world, including The UK, Spain, Finland, Brazil, Chile, Turkey, Poland, India, and The Philippines. We are as dedicated as ever to the innovation and ingenuity that will enrich our customers' lives and help us leave the world better than we found it. And we are proud to increase our impact around the world, including here in The United States where we recently announced plans to spend $500,000,000,000 over the next four years. We're going to be expanding our teams and our facilities in several states, including Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington. And we're going to be opening a new factory for advanced server manufacturing in Texas.

During calendar year 2025, we expect to source more than 19,000,000,000 chips from a dozen states, including tens of millions of advanced chips being made in Arizona this year. We also source glass used in iPhone from an American company. All told, we have more than 9,000 suppliers in The US across all 50 states. Now I'll turn to products, starting with iPhone. IPhone revenue was $46,800,000,000 up 2% from a year ago.

During the quarter, we introduced iPhone 16e, a great new entry level addition to our iPhone 16 lineup. It's powered by our latest generation a18 chip and includes the all new Apple designed C1 modem, the most energy efficient modem ever in an iPhone, allowing iPhone 16e to have the longest battery life of any 6.1 inch iPhone. Meanwhile, iPhone 16 and iPhone 16 Plus users are exploring how they can use camera control, whether capturing stunning images or exploring the world with visual intelligence. And our iPhone 16 Pro models continue to be a hit with our users. They are turbocharged by the remarkable capabilities and efficiency of A18 Pro and feature larger displays and advanced camera system and a beautiful design.

Mac revenue was $7,900,000,000 7 percent higher year over year, another great quarter for Mac. During the quarter, we introduced significant new updates to our lineup. The world's most popular laptop just got even better. The m four powered MacBook Air features a 12 megapixel center stage camera and delivers a massive boost in performance. And now it comes in a beautiful new sky blue color.

The new Mac Studio is the most powerful Mac we've ever shipped. Equipped with M4 Macs and our new M3 Ultra chip, it's a true AI powerhouse capable of running large language models with over 600,000,000,000 parameters entirely in memory. Apple Intelligence brings great capabilities to the Mac with features like writing tools and notification summaries that help users stay focused and get more done. Turning to iPad. Revenue for the quarter was $6,400,000,000 up 15% from a year ago, another strong quarter of double digit growth.

Our iPad lineup continues to help users learn, work, play and go wherever their imaginations take them. The new iPad Air with M3 combines powerful performance and exceptional portability, whether you're taking it across the street or around the world. And Apple Intelligence and Apple Pencil Pro are a perfect match with features like the cleanup tool in Photos to remove distractions and ImageWine in the Notes app to elevate simple sketches into polished illustrations. Across wearables, home and accessories, revenue was $7,500,000,000 down 5% from a year ago. From walking trails to bike paths, Apple Watch Series 10 is an essential partner wherever you are on the health and fitness journey.

And AirPods four with active noise cancellation delivers an extraordinary experience in an open ear design. Customers continue to tell me how important our hearing health features for AirPods Pro two are to them, and we've been expanding their availability to reach even more users around the world. Millions have already taken hearing tests, and the stories we received about the new hearing aid feature are deeply moving, showing how these innovations are making a real difference in people's daily lives. It's a powerful reminder of the impact technology can have when it's designed with care. Meanwhile, Apple Vision Pro takes the concert experience to a whole new level with Metallica, our latest Apple immersive video, which you have to see to believe.

And VisionOS 2.4 unlocks the first set of Apple intelligence features for Vision Pro users while inviting them to explore a curated and regularly updated collection of spatial experiences with the Spatial Gallery app. In retail, in addition to the two stores we opened during the quarter, we're also looking forward to a new retail store in The UAE, the arrival of the online store in Saudi Arabia, and new retail stores in India starting later this year. Let's now turn to services where we achieved an all time revenue record of $26,600,000,000, up 12% from a year ago with strong performance across all of our categories. From starting their morning with their podcast of choice to buying a coffee with Apple Pay to spending an afternoon reading the latest bestseller on Apple Books to using their favorite app from the App Store or an evening workout with Fitness plus Apple services are enriching our users' lives all throughout their day. With incredible shows like the studio, Your Friends and Neighbors and the culture shaping severance, Apple TV plus has become a must see destination with record viewership during the quarter.

And we're excited for our upcoming movie f one starring Brad Pitt, which will hit theaters this summer and gives an incredible inside look at one of the most intense sports on earth. And there is so much more to come this year. It's no wonder Apple TV plus has earned more than 2,500 award nominations and five sixty wins. We're also reaching sports fans in more ways than ever, from watching their favorite teams go to bat on Friday Night Baseball to cheering on their local team with MLS season pass to following the results of every Grand Prix with Formula One now on the Apple Sports app. Turning to software.

We just released iOS 18.4, which brought Apple intelligence to more languages, including French, German, Italian, Portuguese, Spanish, Japanese, Korean and simplified Chinese as well as localized English to Singapore and India. AI and machine learning are core to so many profound features we've rolled out over the years to help our users live a better day. It's why we designed Apple Silicon with a neural engine that powers so many AI features across our products and third party apps. It's also what makes Apple products the best devices for generative AI. At WWDC twenty four, we announced Apple Intelligence and shared our vision for integrating generative AI across our ecosystem into the apps and features our users rely on every day.

To achieve this goal, we built our own highly capable foundation models that are specialized for everyday tasks. We designed helpful features that are right where our users need them and are easy to use. And we went to great lengths to build a system that protects user privacy, whether requests are processed on device or in the cloud with private cloud compute, an extraordinary step forward for privacy and AI. Since we launched iOS 18, we've released a number of Apple intelligence features from helpful writing tools to Genmoji, Image Playground, Image Wand, Cleanup, Visual Intelligence, and a seamless connection to ChatGPT. We made it possible for users to create movies of their memories with a simple prompt and added AI powered photo search, smart replies, priority notifications, summaries for mail messages, and more.

We've also expanded these capabilities to more languages and regions. With regard to the more personal Siri features we announced, we need more time to complete our work on these features so they meet our high quality bar. We are making progress, and we look forward to getting these features into customers' hands. Turning to sustainability. We just celebrated Earth Day, and we were proud to announce that we've cut our emissions by 60% from our twenty fifteen levels.

Today, we're using more clean energy across our operations and more recycled materials in our products than ever. We have worked with suppliers to bring 17.8 gigawatts of renewable electricity online. We're also saving billions of gallons of fresh water and redirecting millions of metric tons of waste from landfills. All of this will help us make important progress towards our goal of carbon neutrality across our supply chain and the life cycle of our products by 02/1930. Now let me walk you through the impacts of tariffs in the March and give you some color on what we expect for the June.

For the March, we had a limited impact from tariffs as we were able to optimize our supply chain and inventory. For the June, currently we are not able to precisely estimate the impact of tariffs as we are uncertain of potential future actions prior to the end of the quarter. However, for some color, assuming the current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900,000,000 to our costs. This estimate should not be used to make projections for future quarters as there are certain unique factors that benefit the June. For our part, we will manage the company the way we always have, with thoughtful and deliberate decisions, with a focus on investing for the long term, and with dedication to innovation and the possibilities it creates.

As we look ahead, we remain confident, confident that we will continue to build the world's best products and services, confident in our ability to innovate and enrich our users' lives, and confident that we can continue to run our business in a way that has always set Apple apart. Next month, we can't wait to welcome our developer community for the Worldwide Developers Conference, and we look forward to revealing some exciting announcements. With that, I'll turn it over to Kevin.

Thanks, Tim, and good afternoon, everyone. Our March revenue of $95,400,000,000 was up 5% year over year despite a headwind of almost 2.5 percentage points from foreign exchange. We also grew in the majority of the markets we track. Products revenue was $68,700,000,000 up 3% year over year, driven by growth in iPhone, iPad, and Mac. And thanks to our high levels of customer satisfaction and strong loyalty, our installed base of active devices reached an all time high across all product categories and geographic segments.

Services revenue was $26,600,000,000 up 12% year over year despite over two percentage points of foreign exchange headwinds. And as Tim mentioned, this was an all time revenue record. We also grew in every geographic segment and saw double digit growth in both developed and emerging markets. Company gross margin was 47.1%, in the middle of our guidance range, and up 20 basis points sequentially, primarily driven by favorable mix. Products gross margin was 35.9, down three forty basis points sequentially, driven by mix, foreign exchange, and a seasonal loss of leverage.

Services gross margin was 75.7%, up 70 basis points sequentially, primarily driven by a different mix, partly offset by foreign exchange. Operating expenses landed at 15,300,000,000 up 6% year over year. Net income was $24,800,000,000 and diluted earnings per share was $1.65 up 8% year over year and a March record. Operating cash flow was also strong at $24,000,000,000 Now I'm going to provide some more details for each of our revenue categories. IPhone revenue was $46,800,000,000 up 2% year over year, driven by the iPhone 16 family.

The iPhone active installed base grew to an all time high in total and in every geographic segment, and iPhone upgraders grew double digits year over year. According to a recent survey from Kantar, during the March, iPhone was a top selling model in The U. S, urban China, The U. K, Germany, Australia, and Japan. And we continue to see high levels of customer satisfaction in The U.

S. At 97%, as measured by four fifty one Research. Mac revenue was $7,900,000,000 up 7% year over year, driven by the latest MacBook Air, MacBook Pro, and Mac Mini models. This performance was broad based, with every geographic segment growing year over year. The Mac installed base reached an all time high, and we saw strong growth for both upgraders and customers new to the Mac.

Customer satisfaction was reported at 95% in The US. IPad revenue was $6,400,000,000 up 15% year over year, driven by the new M3 powered iPad Air. The iPad install base reached another all time high, and over half the customers who purchased an iPad during the quarter were new to the product. Based on the latest reports from four fifty one Research, customer satisfaction was 97% in The U. S.

Wearables, Home and Accessories revenue was $7,500,000,000 down 5% year over year. Keep in mind, we did face a more difficult compare against the launch of the Apple Vision Pro in the year ago quarter as well as the Watch Ultra two launch last year. At the same time, the Apple Watch install base reached a new all time high, with over half of customers purchasing an Apple Watch during the quarter being new to the product. And customer satisfaction for Watch in The U. S.

Was recently measured at 95%. Our services revenue reached an all time high of $26,600,000,000 up 12% year over year. This growth rate was comparable to the December year over year growth rate when we removed the negative impact from foreign exchange. We saw strong momentum in the March, and the growth of our installed base of active devices gives us great opportunities for the future. Customer engagement across our services offerings also continued to grow.

Both transacting and paid accounts reached new all time highs, with paid accounts growing double digits year over year. Paid subscriptions also grew double digits. We have well over 1,000,000,000 paid subscriptions across the services on our platform. We continue to improve the quality and breadth of our service offerings, from additional features in News plus to new games available on Arcade. Apple Pay continues to help our customers with an easy, secure, and private payment solution, and we were pleased to see that our active users in Apple Pay reached an all time record, up double digits year over year.

Turning to enterprise. Organizations are investing more in Apple products and services to drive productivity and employee engagement. For example, KPMG recently rolled out iPhone 16 for all U. S. Employees, reflecting their confidence in Apple's security and privacy features.

We also continue to see strong Mac performance in enterprise. Nubank, the largest digital bank in Latin America, has selected MacBook Air as a standard computer for their thousands of employees. With Vision Pro, companies are continuing to find new and innovative ways to leverage this technology. Dassault Systemes, a leading provider for engineering and three d design software, has natively integrated Apple Vision Pro into their next generation platform, bringing a powerful and immersive spatial experience to thousands of enterprise customers. Now let's turn to our cash position and capital return program.

We ended the quarter with $133,000,000,000 in cash and marketable securities. We had $3,000,000,000 in debt maturities and increased commercial paper by $4,000,000,000 resulting in $98,000,000,000 in total debt. Therefore, at the end of the quarter, net cash was $35,000,000,000 During the quarter, we returned $29,000,000,000 to shareholders. This included $3,800,000,000 in dividends and equivalents and $25,000,000,000 through open market repurchases of 108,000,000 Apple shares. Given the continued confidence we have in our business now and into the future, today our Board authorized an additional $100,000,000,000 for share repurchases as we maintain our goal of getting to net cash neutral.

We're also raising our dividend by 4% to $0.26 per share of common stock, and we continue to plan for annual increases in the dividend going forward as we have done for the last thirteen years. This cash dividend will be payable on 05/15/2025 to shareholders of record as of 05/12/2025. As we move ahead into the June quarter, I'd like to review our outlook, which includes the types of forward looking information that Zuhastin referred to. Importantly, the color we're providing assumes that global tariff rates, policies and application remain in effect as of this call and the global macroeconomic outlook doesn't worsen from today for the current quarter. Despite the overall uncertain environment, we will still be providing color at the total company level, subject to these assumptions and the risk factors that we referred to at the beginning of the call.

We expect our June total company revenue to grow low to mid single digits year over year. We expect gross margin to be between 45.546.5%, which includes the estimated impact of the $900,000,000 of tariff related costs that Tim referred to earlier. We expect operating expenses to be between $15,300,000,000 and $15,500,000,000 We expect OI and E to be around negative $300,000,000 excluding any potential impact from the mark to market of minority investments and our tax rate to be around 16%. With that, let's open the call to questions.

We'll go ahead and take our first question from Eric Woodring with Morgan Stanley.

Great. Thanks so much guys for taking my questions. Tim, I'd love to maybe touch on the tariff point first. There were comments from you earlier on CNBC talking about 50% of iPhones for The U. S.

Currently coming from India. Where do you expect the mix of India sourced iPhones for The U. S. To be by the end of your fiscal year? And is it the goal to source 100% of your U.

S.-bound iPhones from India? Can you just help us understand kind of how we should expect that to trend as we look beyond just the June? And then I

Yes, Eric. Hi, it's Tim. The existing tariffs that apply to Apple today are based on the product's country of origin as you, allude to. For the June, we do expect the majority of iPhones sold in The U. S.

Will have India as their country of origin and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products sold in the also sold in The US. China would continue to be the country of origin for the vast majority of total product sales outside The U. S. And so if you look at the categories of tariffs that are applicable to us today, for the June, most of our tariff exposure relates to the February IEEPA related tariff at the rate of 20%, which applies to imports to The U. S.

For products that have China as their country of origin. In addition, for China, there was an additional 125% tariff for imports of certain categories of products announced in April. And for us, that's some of our U. S. AppleCare and accessories businesses and brings the total rate in China for these products to at least 145%.

Also for transparency and clarity, the vast majority of our products including iPhone, Mac, iPad, Apple Watch and Vision Pro are currently not subject to the global reciprocal tariffs that were announced in April as the Commerce Department has initiated a Section two thirty two investigation into imports of semiconductors semiconductor manufacturing equipment and downstream products that contain semiconductors. And so if you for the June, as I talked about in the my opening comments, we estimate the impact assuming that the current global tariff rates policies and applications don't change for the balance of the quarter to be $900,000,000 to our costs. I wouldn't want to predict the mix of production in the future, right? But I wanted to give you clarity for the June of, you know, where the country of origins are so you can use that for your modeling.

Okay. I appreciate that color. Thank you, Tim. And then maybe my follow-up is, there were a number of reports during the quarter that Apple had pulled forward sell in into the channel to get ahead of tariffs. So can you just help us better kind of understand or clarify if sell in and sell through were aligned in the March, if you're assuming that they would be aligned in the June guide?

And ultimately, do you believe that consumers are accelerating hardware purchases to get ahead of any potential pricing increases? Or was, you know, behavior normal? Thank you so much, Tim.

Yeah. Thanks, Eric, for the question. There are several questions there. One, in terms of the pull forward in demand, if you look at the March, we don't believe that we saw obvious evidence of a significant pull forward in demand in the March due to tariffs. If you look at our channel inventory from the beginning of the quarter to the end of the quarter, the unit channel inventory was similar, not only for iPhone, but for the balance of our products.

For again, for transparency, you will see that we did build a head inventory, and that's reflected in our manufacturing purchase obligations that you'll see on the quarterly filing when it comes out. So I hope that makes the answers your all your questions.

Thank you, Eric. Operator, could we have the next question, please?

Our next question is from Ben Reiszews with Melius. Please go ahead.

Hey, thanks a lot. Hey, Tim, if you had told me that on April 2 that your hit from tariffs is only a nickel a quarter at $900,000,000 That would have been a pretty good outcome given the panic that ensued. I'm surprised that it's that low. But then you did make a comment about after the June. And sorry to push you on that, but could it be a multiple of that figure?

Or is it just completely unknown? We're all just trying to figure out what happens after June. And if there's just any guidance you guys can possibly give that it's bigger, smaller or what. And hoping you can just give us a little color on that. Thanks.

Yeah. Ben, thanks for the question. I tried to give you some information in the previous question about the country of origin, which currently is the key factor in determining the tariffs that we're paying. I don't want to predict the future because I'm not sure what will happen with the tariffs. And there is the Section two thirty two investigation going on.

And so it's, you know, very difficult to predict beyond June. And June has the assumptions in it that I had mentioned earlier.

All right. Well, thanks, Tim. And then just with regard to China, down 2%. I mean, intuitively would have thought there would have been an increased nationalism there and perhaps it would have been worse than that. And the trajectory there improving even with subsidies because subsidies benefited your competitors, too.

Just wondering if a little more color there, can it keep improving? What are you thinking with regard to that trajectory in China given all the geopolitical tensions? Thanks.

Yeah. We were down 2%, as you point out, for the March. And to provide a little more transparency around roughly flat when you remove the headwinds from foreign exchange. And so we did see quite a bit of sequential improvement from the December, which was down 11. And again, for going out of the way for transparency, the channel inventory at the March, the unit channel inventory was similar to where we started in the quarter.

So there you know, there wasn't a build of channel inventory in there. I do believe that the subsidies played a favorable impact on the results. It's difficult to estimate with precision as to, you know, exactly how much, but I think it was positive. Some of our products are included, some of them are not. Generally, on I Phone, if something is priced above RMB 6,000, it is not eligible for the subsidy, and the other products have different rules.

But I do think it helped. And I think it's helping others as well, I'm sure. IPhone was the key driver of the improvement sequentially. And so hopefully that provides you some color. The other thing I would say is that the Mac, the iPad and the Watch are attracting a majority of customers new to that product.

And so that continues to look quite good in China. And iPhone was the top two models in urban China, and iPad was the top two tablets in urban China. So there's some positive nuggets there.

Thank you, Ben. Operator, may we have the next question, please?

Our next question is from Michael Ng with Goldman Sachs. Please go ahead.

Hi, good afternoon. Thank you very much for the question. I was just wondering if you could talk a little bit about your responses on some of this trade policy uncertainty. I appreciated the transparency around building ahead of with inventory. Will you continue to do that in this interim period until we get some clarity on the Section two thirty two investigation?

about your philosophy on pricing, elevated costs to the extent that comes through, whether that be to resellers or end consumers and other efficiency efforts that you might be able to pursue? Thank you.

Yes, obviously, we're very engaged on the tariff discussions. We believe in engagement, we'll continue to to engage. On the pricing piece, we have nothing nothing to announce today. And I I'll just day. Just say that the operational team has done an incredible job around optimizing the supply chain and the inventory, and we'll obviously continue to do those things to the degree that we can.

Great. Thanks. And just as a quick follow-up for Kevin. On product gross margins, I was just wondering if you could provide a little bit more color on some of the factors that may have impacted product gross margins in the quarter. Obviously, down sequentially on seasonal factors, but there was a year over year decline as well.

So any additional color would be helpful. Thank you.

Yes, Michael. Thanks. This is Kevin. So on the sequential, as we mentioned in the prepared remarks, we had decrease in the product gross margin by three forty basis points sequentially. That was primarily driven by mix, seasonal loss of leverage, foreign exchange, and that was partly offset by cost savings.

And when we look at the year on year performance, we were down 70 basis points on a year on year basis, and that was driven by a different mix in foreign exchange.

Thank you, Mike. Operator, could we have the next question, please?

Our next question is from Amit Daryanani with Evercore. Please go ahead.

Thanks a lot. I guess I'll have to start with the tariff question as well. Tim, I think when you talked about the $900,000,000 impact to your cost of goods sold, you saw that at a statement that there are certain unique factors that benefit you in the June related to that number. Can you just talk about what are these unique factors that are benefiting you in the June? And what would the impact be without those benefits essentially?

I wouldn't want to go through all of them, but as an example, the build ahead that is I mentioned earlier that's in the manufacturing purchase obligations is were helpful.

Got it. And then as I think about the June guide of low to mid single digit revenue growth, was wondering, do you folks expect services growth to remain in the double digit range as you go into the back half of the year? I imagine FX is a bit of a benefit as you go to the back half. I'd love to just understand, within that framework, how do you think services stacks up as you go through the June?

Amit. Hey, it's Kevin. So I think when we talk about the overall June, we talked about the low to mid single digits year over year. We do expect foreign exchange in the June to improve sequentially. However, we are expecting it to be a slight headwind to revenue on a year on year basis.

With respect to services, given the uncertainty we see from several factors, we aren't providing the category level of color today.

Thanks, Amit. Operator, could we have the next question, please?

Our next question is from Wamsi Mohan with Bank of America. Please go ahead.

Thank you. Tim or Kevin, how should investors think about the gross margin trajectory as you source more from The U. S. In particular or other supply chain changes that you're making, including in India? How should those kind of play into the cost structure and how should we think about that gross margin trajectory?

We're excited about bringing more production to The U. S. As you know, we've been very key in the TSMC project in Arizona and are the largest and first customer getting product out of that. And that's the SoC that's coming out of there. We also have glass coming out of The US and the face ID module and loads of chips.

In fact, there's 19,000,000,000 chips coming out across all 12 states. This is down to the resistor and capacitor level, obviously. And so there's some that is already built in to the the margins that Kevin has quoted. And we don't really forecast beyond the current quarter, as you know.

Yeah. And maybe I'll add a couple more points as we think about just the margin going forward. You know, a couple of observation I'd mention is every product cycle is different. And over the years, we have managed gross margin well. We've made good decisions of balancing units revenue margins.

Apple (AAPL) Q2 2025 Earnings Call Transcript

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