The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

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.

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.

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.

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

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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Sector

Change The World

Impact Segment

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

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Strongest Dimension

Years on list

Previous rank

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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 2026

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Q1 2025

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

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Good afternoon, and welcome to the Apple Q1 Fiscal Year 2025 Earnings Conference Call. My name is Suhasini Chandramalli, Director of Investor Relations. Today's call is being recorded. Speaking first today are Apple's CEO, Tim Cook, and he will be followed by CFO, Kevin Perek. After that, we will 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 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 annual report on Form 10 ks and the Form 8 ks filed with the SEC today along with the associated press release. Apple assumes no obligation to update any forward looking statements, which speak only as of the date they are made. I would now like to turn the call over to Tim for introductory remarks.

Thank you, Suhasini. Good afternoon, everyone, and thanks for joining the call. Before I talk about our results, I'd like to take a moment to acknowledge the devastating wildfires that impacted the Los Angeles area this month. From our retail teams to Apple TV plus Apple Music, Fitness plus Beats and more, LA is home to many of our team members. Our thoughts are with everyone who is beginning the road to recovery.

For our part, we are contributing to the relief efforts and we will continue to support our teams and the local community. Now turning to the quarter. Today,

is reporting revenue of $124,300,000,000 for the December quarter, up 4% from a year ago and an all time record. EPS also set an all time record of $2.40 10% higher year over year. We achieved all time revenue records across the majority of the countries and regions we track, including the Americas, Europe, Japan and the rest of Asia Pacific. We also continue to see momentum in emerging markets, setting all time revenue records in a number of markets, including Latin America, the Middle East and South Asia among others. In services, we achieved an all time revenue record and in the past year we've seen nearly $100,000,000,000 in revenue from our services business.

I'm also pleased to announce that we reached a new record for our installed base with over 2,350,000,000 active devices. In October, we released the first set of Apple Intelligence features in U. S. English for iPhone, iPad and Mac, and we rolled out more features and expanded to more countries in December. Now, users can discover the benefits of these new features and the things they do every day.

They can use writing tools to help find just the right words, create fun and unique images with Image Playground and Genmoji, Handle daily tasks can seek out information with a more natural and conversational Siri, create movies of their memories with a simple prompt and touch up their photos with cleanup. We introduced visual intelligence with camera control to help users instantly learn about their surroundings. Users can also seamlessly access chat GPT across iOS, iPadOS and macOS. And we were excited to recently begin our international expansion with Apple Intelligence now available in Australia, Canada, New Zealand, South Africa and the U. K.

We're working hard to take Apple Intelligence even further. In April, we're bringing 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. And we'll continue to roll out more features in the future, including an even more capable Siri. Apple Intelligence builds on years of innovations we've made across hardware and software to transform how users experience our products. Apple Intelligence also empowers users by delivering personal context that's relevant to them.

And importantly, Apple Intelligence is a breakthrough for privacy and AI with innovations like Private Cloud Compute, which extends the industry leading security and privacy of Apple Devices into the cloud. Apple Intelligence opens up an exciting new frontier and is already elevating experiences across iPhone, iPad and Mac. We're going to keep investing in innovation and in transformative tools that help users in their everyday lives. Let me now turn to our results for the quarter, starting with iPhone. IPhone revenue came in at $69,100,000,000 reaching all time iPhone revenue records in dozens of markets and regions.

Our iPhone 16 lineup takes the smartphone experience to the next level in so many ways, and Apple Intelligence is one of many reasons why customers are excited. With the A18 powered iPhone 16 and iPhone 16 Plus users are getting a big boost in battery life and incredible camera experiences with camera control. Our amazingly powerful iPhone 16 Pro models go even further with larger than ever displays and a Pro camera system so advanced it can turn moments into masterpieces. In Mac, revenue was $9,000,000,000 for the December quarter, 16% higher year over year, driven by significant excitement around the world for our latest Mac lineup. The Mac is more than just a powerful tool, it's a launchpad to enable users to bring their best ideas and boldest creations to life.

And there are so many reasons to choose Mac, from the breathtaking performance of the M4 family of chips to the groundbreaking and growing capabilities of Apple Intelligence. Every product in the Mac lineup offers something extraordinary, whether that's the super portable MacBook Air, the powerhouse MacBook Pro, the world's best all in one Imac or the small wonder that is the Mac Mini, which is not only stunningly capable, but is our first carbon neutral Mac. All of this is enabled by the unparalleled power of Apple Silicon. IPad revenue was $8,100,000,000 up 15% from a year ago, driven by strong interest for our latest products. We love hearing from customers who are discovering for the first time the versatility of iPad from the ultra portable iPad mini built from the ground up for Apple Intelligence to the powerful M4 iPad Pro in a stunningly thin and light design.

IPad is there for our users whenever they need it and wherever they go, and we are pleased to see so much excitement and enthusiasm for our lineup. Wearables, home and accessories revenue came in at $11,700,000,000 With its most advanced display yet and a thinner, more comfortable design, the all new Apple Watch Series X is the perfect companion to help users pursue their health and fitness goals this year. From the powerful Vitals app to more customizable activity rings, users have an ever increasing set of innovative health tools at their fingertips and watchOS 11. Health innovation has long been a focus for us and we're committed to continuing to advance this work because we know how much it matters to our users. We've introduced new hearing health features on AirPods Pro 2 and new sleep apnea notifications on Apple Watch are also helping users learn of a potentially serious condition that's thought to affect up to a 1000000000 people worldwide.

During the quarter, we also brought Apple Vision Pro to even more countries, enabling more customers to discover the magic of spatial computing. Users are enjoying incredible immersive entertainment experiences and powerful new features and enhancements to Mac Virtual Display. VisionPRO is also supercharging the creative process and the incredibly talented director, Jon M. Chu, recently shared how its extraordinary capabilities helped him bring the movie Wicked to life. Turning to services.

We set an all time revenue record of $26,300,000,000 for the December quarter, growing 14% from a year ago. We set all time records in the Americas, Europe and rest of Asia Pacific and a December quarter record in Japan. 5 years since launch, Apple TV plus continues to be home to incredible storytelling that viewers love. There's nothing quite like the anticipation that comes when a fan favorite returns, and we were thrilled to debut the 2nd season of Severance earlier this month. We have so much in store for our subscribers this year with new shows like The Studio and Your Friends and Neighbors.

And we can't wait for the premiere of Formula 1 starring Brad Pitt on June 27, which will take viewers inside the sport in a truly unprecedented way. We're excited that Apple TV plus continues to draw attention and accolades. To date, Apple TV plus productions have earned more than 2,500 nominations and 538 wins. During the quarter, we were also excited to launch a new Find My service that can help our users when they lose their luggage. For the first time, if you put an AirTag in your suitcase, you'll be able to share its location information with many major airlines so they can quickly track down your bags if they get lost.

Turning to retail, our teams went above and beyond to help customers find the perfect gift throughout the holiday season. We also celebrated openings of new stores in China, Spain and the U. S. And we were excited to announce plans to connect with even more customers this year by adding a 5th store in the UAE and bringing our online store to Saudi Arabia this summer. We can't wait to welcome customers to the first of several flagship store locations in Saudi Arabia that were opening beginning in 2026.

I just had the chance to visit both countries last month and I had a great time meeting with customers and team members. There is an incredible energy and passion for technology in these growing markets. Every day, I get deeply moving notes about the many ways our technology is enriching our users' lives. I recently got a note from a customer who put his watch on his father's wrist when he feared something was wrong with him. The watch alerted them that the father was in AFib and they were able to get him to the hospital for potentially lifesaving treatment.

Another user put his new watch on for the first time and within 15 minutes was notified of a low heart rate that led to a necessary pacemaker. And there are so many touching notes around the profound impact of our new hearing health feature like a recent user who told me it had changed her life, allowing her to take part in conversations with her children and grandchildren. These are the kind of stories that remind us of how profoundly important our work is, and it drives us to innovate each and every day. At Apple, the future is full of promise and potential. We're always searching across a world of possibilities, finding those places where we can do the most good and putting all of our energy and ingenuity into making something special.

Thanks, Tim, and good afternoon, everyone. I'm going to cover the results for the Q1 of our fiscal year. We are very pleased to report an all time high for revenue with December quarter revenue of $124,300,000,000 up 4% year over year. We achieved all time revenue records in the Americas, Europe, Japan and rest of Asia Pacific and grew in the vast majority of markets we track. Products revenue was $98,000,000,000 up 2% year over year, driven by growth from iPad and Mac.

Thanks to our incredible customer satisfaction and strong loyalty, our installed base of active devices reached an all time high across all products and geographic segments and is now over 2,350,000,000 active devices. Services revenue reached an all time record of $26,300,000,000 up 14% year over year. We grew in every geographic segment and achieved all time records in both developed and emerging markets. Company gross margin was 46.9%, at the high end of our guidance range and up 70 basis points sequentially, primarily driven by favorable mix. Products gross margin was 39.3%, up 300 basis points sequentially, primarily driven by favorable mix and leverage.

Services gross margin was 75%, up 100 basis points sequentially, primarily driven by mix. Operating expenses of $15,400,000,000 landed at the midpoint of our guidance range and up 7% year over year. This strong business performance resulted in all time records for both net income at $36,300,000,000 and diluted earnings per share of $2.40 up 10% year over year. Operating cash flow was also strong at $29,900,000,000 which included the impact of the $11,900,000,000 we paid during the quarter in connection with the state aid decision. Now, I'm going to provide some more details for each of our revenue categories.

IPhone revenue was $69,100,000,000 roughly flat to the prior year. We grew in the majority of markets we track and reached all time revenue records in several developed markets, including Canada, Western Europe and Japan, and in emerging markets like Latin America, the Middle East and South Asia. The iPhone active installed base grew to an all time high in total and in every geographic segment. We also set an all time record for upgraders. According to a recent survey from Kantar, during the December quarter, iPhone was a top selling model in the U.

S, Urban China, India, the U. K, France, Australia and Japan. We continue to see high levels of customer satisfaction in the U. S. At 96%, as measured by 451 Research.

Mac generated $9,000,000,000 in revenue, up 16% year over year. We saw strength across our lineup from the new Mac Mini to the latest MacBook Air and MacBook Pro models. This incredible performance was broad based with double digit growth in every geographic segment. With our latest advances in Apple Silicon and our fastest Neural Engine ever, customers are able to take advantage of the full capabilities of AI and Mac. The Mac installed base reached an all time high, and we saw double digit growth for both upgraders and customers new to the Mac.

Additionally, customer satisfaction in the U. S. Was recently measured at 94%. IPad revenue was $8,100,000,000 up 15% year over year, driven by the new iPad mini and latest iPad Air. The iPad installed base reached another all time high, and over half of the customers who purchased an iPad during the quarter were new to the product.

Customer satisfaction was at 96% in the U. S. Based on the latest reports from 451 Research. Wearables home and accessories revenue was $11,700,000,000 down 2% year over year. Customers are excited about the new AirPods 4 and the latest hearing health features in AirPods Pro 2.

On Watch, although we faced a difficult compare against the Watch Ultra 2 launch last year, the Apple Watch installed base reached a new all time high, with over half of customers purchasing an Apple Watch during the quarter being new to the product. Customer satisfaction for Watch in the U. S. Was reported at 94%. Our services revenue reached an all time high of $26,300,000,000 up 14% year over year.

Services continues to see strong momentum and the growth of our installed base of active devices gives us great opportunities for the future. We also see increased customer engagement with our services offerings. 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 remain focused on improving the breadth and quality of our services offerings, from new games in Apple Arcade to exciting new programming on Fitness plus and the continued expansion of features like Tap to Pay, now live in 20 markets. Turning to enterprise, we have seen businesses continue to expand their deployments of our products and services. Deutsche Bank launched its MacAs Choice program for the developers and also issued the latest MacBook Air as a standard computer for their entire mortgage lending division. And we're excited to see leading enterprises such as SAP leverage Apple Intelligence in the U. S.

With features like writing tools, summarize and priority notifications to enhance both their employee and customer experiences. We also see strong demand in our emerging markets. For example, Zomato, a leading food ordering and delivery company in India, has deployed thousands of Macs across their workforce to foster innovation. Envision Pro continues to see more use cases in enterprise, with Cisco's new spatial meetings delivering a fully immersive video conferencing experience for remote collaboration and learning. Let me quickly summarize our cash position and capital return program.

We ended the quarter with $141,000,000,000 in cash and marketable securities. We repaid $1,000,000,000 in maturing debt and decreased commercial paper by $8,000,000,000 resulting in $97,000,000,000 in total debt. Therefore, net cash at the end of the quarter was $45,000,000,000 During the quarter, we returned over $30,000,000,000 to shareholders. This included $3,900,000,000 in dividends and equivalents and $23,300,000,000 through open market repurchases of 100,000,000 Apple shares. As usual, we will provide an update to our capital return program when we report results for the March quarter.

As we move ahead into the March quarter, I'd like to review our outlook, which includes the types of forward looking information that Suhasini referred to at the beginning of the call. The color we're providing today assumes that the macroeconomic outlook doesn't worsen from what we're projecting today for the current quarter. As the dollar has strengthened significantly, we expect foreign exchange to be a headwind and to have a negative impact on revenue of about 2.5 percentage points on a year over year basis. Despite that headwind, we expect our March quarter total company revenue to grow low to mid single digits year over year. We expect services revenue to grow low double digits year over year.

When you remove the negative impact of the foreign exchange headwinds I described earlier, the year over year growth rate would be comparable to that of the December quarter. We expect gross margin to be between 46.5 percent 47.5 percent. We expect operating expenses to be between $15,100,000,000 $15,300,000,000 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%. Finally, today, our Board of Directors has declared a cash dividend of $0.25 per share of common stock payable on February 13, 2025 to shareholders of record as of February 10, 2025. With that, let's open the call to questions.

Thank you, Kevin. We ask that you limit yourself to 2 questions. Operator, may we have the first question, please?

Certainly. We will go ahead and take our first question from Eric Woodring with Morgan Stanley. Please go ahead.

Tim, in your prepared remarks, you had noted that iPhone 16 models are selling better in markets where Apple Intelligence is available. And I'm just wondering if you could double click on that comment a bit and share any other details you believe could better help us understand how Apple Intelligence is really impacting iPhone demand and or what features you find that users are using most often already? And let me just have a quick follow-up.

Yes, Eric. Hi, it's Tim. We did see that the markets where we had rolled out Apple Intelligence that the year over year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available. In terms of the features that people are using, they're using all of the ones that I referenced in my opening comments from writing tools to Image Playground and Genmoji to visual intelligence and more. And so, we see all of those being used.

The cleanup is another one that is popular and people love seeing that when demoed in the stores as well. We only had 2, 2.5 weeks or so during the December quarter of the second release of 18.2 and then only had the UK and the other English language countries for the 2.5 weeks. And so we've got just the early indications at the moment. But we were Okay.

Okay. Thank you for that color, Tim. It's helpful. And then, if we just touch on China, obviously, in the news fairly frequently. If we set aside China macro, which I understand is still challenging, can you maybe talk about the headwinds that Apple faces, whether that's shifting preferences for Western technology brands in favor of domestic vendors?

Or is this just a function of not necessarily having Apple intelligence available with the iPhone 16, which is not necessarily helping replacement cycles? Just maybe double clicking on what you think and what you're hearing in China as it relates to the iPhone? Thanks so much.

Yes, sure. If you look at our Greater China revenue for the quarter, we were down 11% year over year. And over half of the decline that we experienced was driven by change in channel inventory from the beginning to the end of the quarter. And of course, on the Apple Intelligence side, we have not rolled out in China. And as we just talked about, we did see better results in the markets that we had rolled out in than markets we hadn't rolled out in.

And of course, it's the most competitive market in the world. And so all of those things are true. In terms of the macro situation, there was a fiscal stimulus or subsidy announced in very recently in January that did not affect the December quarter. There were some provincial subsidies in the December quarter, but the national program was announced, I believe, on January 20th. And it does cover the categories that we have products in from smartphones to tablets and PCs and smartwatches up to certain maximum price point.

And so we do see fiscal stimulus occurring and we'll be glad to talk about what that looks like on the next call.

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

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

Hey, guys. Thanks a lot for the question. And hey, Tim, I wanted to ask you, you knew this one was coming, but there's a perception that you're a big beneficiary of lower cost of compute. And I was wondering if you could give your worldly perspective here on the DeepSeq situation. And if you are going to if you if anything has happened to change your views in terms of a tailwind to margins and your ability to execute even due to the potential for costs to come down due to that development and probably what was going to happen anyway.

But I'd love your perspective on that and then I have a quick follow-up.

Sure. In general, I think innovation that drives efficiency is a good thing and that's what you see in that model. Our tight integration of silicon and software, I think, will continue to serve us very well. As you know, we do things on the device and we do things in the private cloud and which mimics from a architectural point of view the what happens on device. And from a CapEx point of view, we've always taken a very prudent and deliberate approach to our expenditure and we continue to leverage a hybrid model, which I think continues to serve us well.

Great. All right. Thanks, Tim. And then just with regard to the iPhone trajectory, do you feel like I guess, you obviously don't talk about new products and stuff like that, but do you feel that there's a lot of room for form factor innovation in the future? Or do you feel that the current lineup kind of shows where you're going?

I guess without pulling punches, wondering if you thought in terms of the phone innovation, if there's a lot more to come and you could see the kind of current market changing a bit over the next 2 to 3 years? Thanks.

I think, Ben, I think there's a lot more to come and I could not feel more optimistic about our product pipeline. So I think there's a lot of innovation left on the smartphone.

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

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

Good afternoon. Thank you for the question. I have 2 as well. First, it was encouraging to hear about the record for iPhone operators, which I think is something you haven't said for about a year now. I was wondering if you could talk a little bit about what you would attribute this upgrade strength to?

Has Apple Intelligence played a role in helping upgrades in the markets that you've launched in? Thanks.

Yes. Thank you for the question. If you look at iPhone, we did set an all time record for upgraders. So we've never seen a higher level of upgraders before. The installed base hit a new all time high as well.

And if you look at the 'sixteen compared to the 'fifteen from launch, which occurred, as you know, in September, so this is across now 2 quarters from September to the end of the December fiscal quarter, the 16 outperformed the 15. And so I think you can conclude from that that there are compelling reasons to upgrade. And in the markets where we had launched Apple Intelligence, they outperformed the markets that we did not. So, lots of good color there.

Great. Thank you, Tim. That's very clear. And then I had one about the iPad Pro and for the thinner version. I was just wondering if you could talk about that thin form factor for the iPad Pro.

How did it help iPad sales overall? And what did your kind of marketing consumer research tell you about how consumers valued that thin product form factor? Thank you.

It's a good question. IPad overall grew 15% for the quarter and it was more driven by iPad Air and the entry level iPad than it was the top level iPad. But overall, we could not be more pleased with the iPad category growing 15%. It's a great achievement for the quarter. And probably what is most important is that over half of the sales in the December quarter went to customers who were new to the iPad.

So that tells us that there's a good amount of customers there to attract.

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

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

Good afternoon, everyone. 2 as well. Maybe to start with, you folks are seeing some very robust growth trends in emerging markets right now for Apple products. Can you just add a high level just talk about the durability of growth that you see in emerging markets? And then do you think the summation of these emerging markets are starting to get big enough or perhaps starting to grow fast enough that you can actually offset some of the China headwinds you're going through?

We have great results in a number of emerging markets. And as you know from past calls, I'm particularly keen on India. India set a December quarter record during the quarter, and we're opening more stores there. We've announced that we're going to open 4 new stores there. We also the iPhone was the top selling model in India for the quarter And it is the 2nd largest smartphone market in the world and the 3rd largest for PCs and tablets.

And so there is a huge market and we are we have very modest share in these markets. And so I think there's lots of upside there. And that's just one of the emerging markets.

Tim, maybe I'll add, Amit. Then the emerging markets, we're also seeing double growth, I mean, installed base, both in total and for the iPhone as well. So that's also an encouraging sign.

Perfect. And then, I guess, just a question on gross margins for the March quarter. You folks are guiding gross margin to be flattish on a sequential basis. Typically, I think it tends to be guided up a little bit, 50 basis points sequentially. Can you just touch on like what are the offsets of the puts and takes you've seen on gross margins?

And Kevin, maybe you can just talk about is FX having an outsized impact in your margin profile as well in margin?

Yes. Amit, let me take that one. As we mentioned in my remarks, we're guiding to 46.5% to 47.5%. So we think it's very pleased with that level of guidance. As you mentioned, there's always puts and takes.

We do think can be some FX headwinds, which we talked about, that's going to affect our revenue growth as well, have an impact here on the margin, a sequential impact on margins. But we think that's going to be offset by favorable costs and the relative mix of services. And we also, as you know, when we move from Q1 to Q2, especially on the product side, because Q1 is such a large quarter for our products business, we do have a loss of leverage. So there are some puts and takes. And I think we feel good about the range.

We think it's a very, very strong guide for gross margin.

Apple (AAPL) Q1 2025 Earnings Call Transcript

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