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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Change The World

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Overall Score

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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.

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

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Good afternoon, and welcome to the Apple q 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. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast, including risks related to the potential impact to the company's business and results of operations from macroeconomic conditions, tariffs and other measures, and legal and regulatory proceedings. 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 06/28/2025 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, Suasini. Good afternoon, everyone, and thanks for joining the call. Today, we are proud to report a June revenue record of $94,000,000,000 up 10% from a year ago, which was better than we expected. EPS set a June record of $1.57 up 12% year over year. We saw an acceleration of growth around the world in the vast majority of markets we track, including Greater China and many emerging markets.

And we had June revenue records in more than two dozen countries and regions, including The US, Canada, Latin America, Western Europe, The Middle East, India, and South Asia. These results were driven by double digit growth across iPhone, Mac, and services. We set a June record for iPhone, which grew a strong 13% year over year. We saw iPhone growth in every geographic segment and double digit growth in emerging markets, including India, The Middle East, South Asia and Brazil. Mac continued to see excellent results with revenue up 15% year over year.

And we set another all time revenue record in services, which grew 13% with double digit growth in both developed and emerging markets. Last month, we hosted WWDC, an incredible event for our developer community with millions joining us online and more than 1,000 developers here in person at Apple Park. We shared some truly exciting updates, including a stunning new design crafted from a material we call liquid glass. It's both beautiful and expressive. And for the first time ever, this design extends across all of our platforms.

We can't wait for users everywhere to experience it this fall. And we were excited to share some updates across our AI work. We announced even more capabilities coming later this year, including live translation and WorkoutBuddy. In addition to those new features, we announced new support for a number of languages. And we opened up access to the on device foundation models at the core of Apple Intelligence, enabling developers to build a whole new experience for our users.

It's wonderful to see great momentum building for our platforms. IOS 26, macOS 26 and iPadOS 26 are by far the most popular developer betas we've had. Taking a step back, we see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments.

Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that's at the heart of our AI strategy. With Apple Intelligence, we're integrating AI features across our platforms in a way that is deeply personal, private, and seamless, right where users need them. We've already released more than 20 Apple Intelligence features, including visual intelligence, cleanup and powerful writing tools. We're making good progress on a more personalized Siri. And as we've said before, we expect to release these features next year.

Apple Silicon is at the heart of all of these experiences, enabling powerful Apple intelligence features to run directly on device. For more advanced tasks, our servers, also powered by Apple Silicon, deliver even greater capabilities while preserving user privacy through our private cloud compute architecture. We believe our platforms offer the best way for users to experience the full potential of generative AI. Thanks to the exceptional performance of our systems, our users are able to run generative AI models right on their Mac, iPad and iPhone. We're excited about the work we're doing in this space, and it's incredibly rewarding to see the strong momentum building.

Now let me turn to more details about our results for the quarter, starting with iPhone. IPhone revenue was $44,600,000,000 up 13% from a year ago, and we set a June record for upgraders. This strong broad based performance was driven by the incredible popularity of the iPhone 16 family, which was up strong double digits year over year as compared to the 15 family. We also recently marked a significant milestone. We shipped the three billionth iPhone since its launch in 02/2007.

From the Pro models with the powerhouse A18 Pro and innovative Pro camera features to the iPhone 16E with breakthrough battery life and a two in-one camera system, users are finding so many reasons to love the best iPhone lineup we've ever created. And iOS 26 will take that experience even further. In addition to the beautiful new design and powerful Apple intelligence features, it introduces a range of meaningful updates, like real time call screening and hold assist in the phone app, smarter messaging tools and new live translation features. It all adds up to a smarter, more personal iPhone experience that we can't wait for users everywhere to enjoy this fall. In Mac, we had another strong quarter with revenue of $8,000,000,000 up 15% year over year, largely driven by the strength of the M4 MacBook Air.

We set a June record for upgraders on Mac, and we saw great performance in emerging markets with strong double digit growth on revenue as well as strong double digit growth on both upgraders and customers new to Mac. MacBook Air, the world's most popular laptop, unlocks a whole new level of performance with the power of M4. MacBook Pro customers, meanwhile, continue to be drawn to its incredible power and the longest battery life we've ever had on a Mac. Customers are also loving the newest Mac Studio, which is the most powerful Mac we've ever made with next level capabilities to tackle even the most demanding AI workflows. At the same time, Mac Mini continues to win over customers by packing so much performance into an ultra compact design.

And with fantastic new updates in macOS Tahoe 26, from the phone app to live activities to our biggest ever update to Spotlight, Mac users across our entire lineup are going to find delightful new ways to stay connected and productive. For iPad, June revenue was $6,600,000,000 Our incredibly versatile iPad lineup brings together power and portability like never before, And users are already excited for our biggest iPad software update ever with the upcoming release of iPadOS 26. It starts with a new windowing system that's remarkably intuitive, giving users more control than ever of their iPad experience. An enhanced Files app makes it easier than ever to stay organized. And that's all on top of a beautiful new software design that brings these updates to life.

Turning to Wearables, Home and Accessories. Revenue was $7,400,000,000 and we saw a June record for upgraders to Apple Watch. During the quarter, we marked the ten year anniversary of Apple Watch, celebrating a decade of helping users navigate their health and fitness journeys. And with watchOS '20 six, Apple Watch will be more intelligent than ever with smart updates to the workout app and smart stack along with a fresh new design that feels both dynamic and personal. We're also thrilled about what's coming to Apple Vision Pro with Vision OS 26, introducing spatial widgets that let users customize their digital space, more lifelike personas, and new enterprise APIs that empower companies to build their own spatial experiences.

And this fall, new features for our latest AirPods lineup will unlock even more possibilities from studio quality audio recording to using AirPods as a camera remote, giving users powerful new ways to capture content and stay connected. As we're innovating across our lineup, we're especially proud of the work we're doing to help our users live healthier lives. Since we first launched our hearing health features for AirPods Pro two, I've received notes from people who are delighted to be able to connect more deeply with loved ones. Whether it's with AirPods Pro two or Apple Watch or iPhone, it's amazing to see the power of our health and safety features, from hearing tests to fall detection alerts to irregular rhythm notifications having such a profound impact. Turning to services.

Revenue for the June was $27,400,000,000 up 13% from a year ago and an all time record. Apple TV plus scored 81 nominations, a record for the platform across nearly every eligible category for this year's Emmy Awards. Severance leads all Emmy nominees with 27 nominations, and the studio follows close behind with 23 nominations, more than any other freshman comedy series ever. It's amazing to see how these and other Apple TV shows have captured the popular imagination. To date, Apple TV plus has earned more than 2,700 award nominations and five eighty five wins on the strength of the highest rated original content of any streaming network.

And we continue to see very positive trends in the June with TV plus viewership up strong double digits year over year. In June, we were also thrilled to release F1 in theaters around the world, one of the summer's most unforgettable blockbusters. During the quarter, we celebrated a big anniversary with ten years of Apple Music. To mark the occasion, we launched an all new studio space in Los Angeles for artists to create content and connect with fans. And later this year, we're bringing Apple Music users even more to love, from an enhanced listening experience with automix, which mixes songs like a DJ, to lyrics translation and more.

The App Store, meanwhile, continues to be the very best place to discover the latest apps from developers around the world in a safe and trusted way, and App Store revenue grew double digits year over year, setting a June record. In retail, we continue to find opportunities in emerging markets to connect with even more customers. We recently launched the Apple Store online in Saudi Arabia, and we couldn't be more excited to open new stores in The UAE and India later this year. We were also delighted to welcome customers in Japan to a new location in the heart of Osaka. Across everything we do at Apple, we show up by leading with our values.

We feel strongly that the benefits of technology should be shared by everyone. That's why we make technology for everyone. In May, to mark Global Accessibility Awareness Day, we announced updates to help users learn, connect and interact with their worlds, including Magnifier for Mac, a new braille experience and Accessibility Reader, a new system wide reading mode to make it easier to understand content. And we're proud to introduce accessibility nutrition labels, giving users an understanding of accessibility features before they download an app while helping developers educate people on features their app support. This month, we also announced a $05,000,000,000 commitment with NP Materials to strengthen the supply of vital recycled rare earth materials in The U.

S. And support American industry. And in August, we're opening our all new Apple Manufacturing Academy in Detroit to train and support American manufacturers. These investments are part of Apple's largest ever spin commitment, which we announced earlier this year. Over the next four years, Apple is investing $500,000,000,000 in The U.

S, driving innovation and creating jobs in cutting edge fields like advanced manufacturing, silicon engineering, and artificial intelligence. We're proud of this work and all that we're doing to tap into American innovation and bring the best technology experiences to users across the globe. And we continue to look for further opportunities to do even more. Finally, the situation around tariffs is evolving, so let me provide some color there. For the June, we incurred approximately $800,000,000 of tariff related costs.

For the September, 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 about $1,100,000,000 to our costs. This estimate should not be used to make projections for future quarters as there are many factors that could change, including tariff rates. We're really proud of our results for the June, and I want to thank our teams and our customers. In everything we do, we're driven by transformative innovation, delivering the most exceptional products and services we've ever created, and we're especially excited about what's ahead. With that, I'll turn it over to Kevin.

Thanks, Tim, and good afternoon, everyone. Our revenue of $94,000,000,000 was up 10% year over year and is a new June record. We grew in every geographic segment and in the vast majority of the markets we track. Products revenue was $66,600,000,000 up 8% year over year, driven by growth across iPhone and Mac. And thanks to our high levels of customer satisfaction and strong loyalty, our installed base of active devices reached another all time high across all product categories and geographic segments.

Services revenue was $27,400,000,000 up 13% year over year and an all time record. We saw strength across the world with double digit growth in the majority of our markets. Company gross margin was 46.5%, at the high end of our guidance range and down 60 basis points sequentially, primarily driven by approximately $800,000,000 in tariff related costs Tim mentioned earlier. Products gross margin was 34.5%, down 140 basis points sequentially, driven by mix and tariff related costs, partly offset by cost savings. Services gross margin was 75.6%, down 10 basis points sequentially.

Operating expenses landed at $15,500,000,000 up 8% year over year. This strong business performance led to June records for both net income at $23,400,000,000 and diluted earnings per share of 1.57 which was up 12% year over year. Operating cash flow was also strong at $27,900,000,000 Now I'm going to provide some more details for each of our revenue categories. IPhone revenue was $44,600,000,000 up 13% year over year driven by the iPhone 16 family. As Tim noted, we saw iPhone growth in every geographic segment and double digit growth in many emerging markets.

The iPhone active installed base grew to an all time high in total and in every geographic segment, and we reached a June record for upgraders. According to a recent survey from World Panel, formerly of Kantar, iPhone was a top selling model in The U. S, urban China, The U. K, Australia, and Japan during the June. And we continue to see very high levels of customer satisfaction in The U.

S. At 98%, as measured by four fifty one Research. Mac revenue was $8,000,000,000 up 15% year over year, driven by continued strength across the portfolio, including MacBook Air, Mac Mini, and MacBook Pro. We grew in every geographic segment and saw double digit growth in Europe, Greater China, and the rest of Asia Pacific. The Mac installed base reached an all time high and we hit a June record for upgraders.

In The U. S, customer satisfaction was recently measured at 97%. IPad revenue was $6,600,000,000 down 8% year over year, which was expected given the difficult compare against the launch of the iPad Air and iPad Pro in the year ago quarter. At the same time, 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. And based on the latest reports from four fifty one Research, customer satisfaction was 98% in The U.

S. Wearables, Home and Accessories revenue was $7,400,000,000 down 9% year over year. This was driven by a difficult compare on accessories due to the prior year's iPad launches that I just referred to. 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. We also set a quarterly record for upgraders on Apple Watch.

And the latest customer satisfaction for Watch in The U. S. Was reported at 97%. Our services revenue reached an all time high of $27,400,000,000 up 13% year over year. The performance in the June was broad based.

We saw a sequential acceleration across a majority of the categories, including cloud services where we reached an all time revenue record driven by the year over year growth of iCloud paying accounts. We saw strong momentum during the June, 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 the new Apple Games app to a continued expansion of tap to pay and Wallet. Turning to enterprise, organizations are continuing to invest in Apple products to drive employee innovation and productivity. With companies like PayPal and Roche deploying more Macs for their workforce, we had the best June ever for Mac and Enterprise. In Thailand, Siam Commercial Bank, one of the largest Thai banks, has deployed thousands of iPads across their branches to enhance the quality and efficiency of their banking operations from loan services to wealth management.

CAE, a leader in pilot training and simulation technology, is using Apple Vision Pro to enable pilots to become more familiar with aircraft procedures, leading to more productive in person flight simulator training outcomes. 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 5,700,000,000 of debt maturities, issued $4,500,000,000 of new debt and increased commercial paper by $4,000,000,000 resulting in $102,000,000,000 in total debt. Therefore, at the end of the quarter, net cash was $31,000,000,000 During the quarter, we returned over $27,000,000,000 to shareholders.

This included $3,900,000,000 in dividends and equivalents and $21,000,000,000 through open market repurchases of 104,000,000 Apple shares. As we move into the September, I'd like to review our outlook, which includes the types of forward looking information that Suhasim referred to. Importantly, the color we're providing assumes that the global tariff rates, policies, and application remain in effect as of this call, the global macroeconomic outlook does not worsen from today, and the current revenue share agreement with Google continues. We expect our September total company revenue to grow mid to high single digits year over year. We expect services revenue to grow at a year over year rate similar to what we reported in the June.

We expect gross margin to be between 4647%, which includes the estimated impact of the $1,100,000,000 tariff related costs that Tim referred to earlier. We expect operating expenses to be between $15,600,000,000 and $15,800,000,000 We expect OI and E to be around negative $25,000,000 excluding any potential impact from the mark to market of minority investments and our tax rate to be around 17%. Finally, today our Board of Directors has declared a cash dividend of $0.26 per share of common stock payable on 08/14/2025, to shareholders of record as of 08/11/2025. With that, let's open the call to questions.

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

Certainly. We'll go ahead and take our first question from Michael Ng with Goldman Sachs. Please go ahead.

Hey, good afternoon. Thank you for the questions. I just have one on upgrade rates and one on CapEx. First, on the upgrade rates, it was encouraging to see the records on iPhone, Mac and Watch. I was wondering if you're seeing strength in the upgrade rates?

Or is the records more a function of the growing installed base? What is your research showing that made upgrades particularly compelling this year? For example, is it product features, tariff pull forward, perhaps Apple Intelligence? And then I'll give my follow-up on CapEx.

the CapEx, it's up notably year to date. Could you just comment on your capital spending plans this year and next and provide some qualitative color in terms of what's driving that growth? Is it AI related or supply chain diversification, for instance? Thank you.

Yeah, Mike. It's it's it's a combination of factors. I would say a pretty significant driver, as Tim talked about, is the fact we are increasing our investment significantly in AI. So that is certainly a a component of it. As you know, we've been investing in private cloud compute, is also in our first party data centers.

The other piece, as you know, is we do have a hybrid strategy where in cases we do use third parties to make capital investments, and we also invest in our own. So you are going to see an increase in CapEx. We also from time to time have other investments in facilities, in tooling, but I would say a significant portion of the driver of growth that you're seeing now is really driven by some of our AI related investments.

On the upgrades, Michael, if you look at iPhone, the 16 family grew double digit as opposed to the 15 family from the year ago quarter. And so we did set an upgrade record. I think it directly is because of the strength of the product. Mac also set records on upgrade. And I think, you know, we continue to see a move to Apple Silicon and the performance of Apple Silicon is playing a very key role.

And so it was an incredible quarter. In terms of if you're wondering about pull forward, we would estimate the pull forward of demand into April specifically to be about one point of the 10 points in terms of people buying because of discussions about tariffs.

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

Our next question is from Eric Woodring with Morgan Stanley. Please go ahead.

Hey, good afternoon, guys. Thank you very much for taking my questions. I have two as well. Pip, maybe starting with You know, shortly after March earnings, there were some reports about searches on Safari declining in April for the first time, I think, in over two decades. Judging by your 13% services growth this quarter, it doesn't seem to indicate that April trends necessarily played out through the remainder of the June quarter.

And so I'm I'm really just looking for a little bit more color on on really how the rest of the quarter played out and if you believe Apple products as kind of search access points are losing their strategic value as AI platforms become more valuable or popular or increasing in strategic value? And then I have a follow-up. Thank you.

I think they continue to be very valuable. I think that consumers' behaviors are evolving, and we're monitoring it very closely.

Okay. I appreciate that color. Thanks, Tim. And then maybe second to that, I'd love if you could maybe elaborate a bit on what you're seeing in China. I think in an interview earlier this afternoon, you alluded to some of the promotions being tailwinds.

But just bigger picture, if we take a step back in China, how would you characterize demand interest in the iPhone 16 and some of your other products? Is that shifting? Or maybe were some of the trends in the June maybe a bit more onetime and unique in nature?

We did grow in Greater China by 4% during the quarter versus the previous quarter. It was driven by an acceleration by iPhone, although we also had substantial growth on the Mac year over year. From a as you know, the government has placed certain subsidies that affect some of our products, not all of them, but there are some of them. And I think that had some effect. It was the first full quarter of the subsidy playing out.

That it cut in during a portion of the previous quarter. The also the other things I would say are the that the installed base hit a record high in Greater China, and we set an all time record for the iPhone installed base. The iPhone upgraders in Mainland China set a record for the June. And according to World Panel, which was formerly known as Kantar, iPhone had the top three models in urban China, which is extraordinary. Also, you look at the other products, Mac, iPad, and Watch, the majority of customers that are buying in China Mainland were new to the product.

So lots of good things there. And the other thing I would point out, which is an interesting point, the MacBook Air was the top selling laptop model in all of China, and the Mac Mini was the top selling desktop model in in all of China. So overall, a positive very positive quarter.

Great. Thanks for the color, Tim. Good luck.

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

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

Yeah. Thanks. I I really appreciate it. I wanted to, ask about Siri, Tim, and just overall AI investment. There's a perception that Siri is going to help drive other new products potentially that maybe where voice is quite needed.

And just wondering in your how's your confidence towards launching that next year? Is there anything that's been done internally to increase that confidence? Is it tied to the investment? I just think folks would love to know a little bit more about your confidence and how that's going. And then I have a follow-up. Thanks.

Yes. Thanks for the question. We're making good progress on a more personalized Siri, and we do expect to release the features next year as we had said earlier. Our focus from an AI point of view is on putting AI features across the platform that are deeply personal, private, and seamlessly integrated. And, of course, we've done that with more than 20 Apple intelligence features so far from visual intelligence to cleanup to writing tools and all the rest.

We are significantly growing our investment. We did during the June. We will again in the September. I'm not putting specific numbers behind that at this point, but you can probably tell in the guidance that things are moving up. We are also reallocating a fair number of people to focus on AI features within the company that are you know, we have great, great team, and we're we're putting all of our energy behind it.

Terms of products here. In terms of other products, I you know, I don't want to really comment on specific other products, but we have an exciting road map ahead. And I could not be more excited about it.

That's great, Tim. Thanks for the color. Just with regard to my second question, it's about the overall revenue guide. And I appreciate that you guide the best you can see it, but I just wanted to challenge it from a different way is, why would it decelerate if services is staying the same at 13%? What is there a conservatism there?

I would think even currency is just as favorable, if not more favorable. So why would it decelerate to the higher single digits from where you were in the quarter? Or is it just being conservative? And if there's something decelerating or a comp, do you mind just pointing that out? Thanks.

Yeah, Ben, this is Kevin. Thanks for the question. I think when you look at the growth from Q3, which is reported to the mid to high single digit guide, I think you have to kind of keep in mind two components. The first is the effect of the tariff related pull ahead in demand that Tim referenced earlier, which we estimated to be about one point of the 10 points that we ended up doing in Q3. And then the other factor that I think you have to take into consideration is the fact that in September a year ago, we had the full quarter impact of the iPad launches, which also leads to a difficult compare this year.

So those two components are things you have to take into consideration as you think about the move from Q3 to Q4. I would say foreign exchange is a very minor tailwind going from Q3 to Q4, so not really a major factor.

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

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

Hi, yes. Thank you so much. Tim, I know you said similar growth in services and that's predicated with Google payments continuing. Is there any way for us to dimensionalize sort of or maybe just conceptually talk about maybe options if the counter were to happen, if the payments were not allowed in some way, what are some of the things that Apple could do given that it is a significant chunk of profitability? And I have a follow-up.

Yeah. Wamsi, I don't really want to speculate on the court ruling and how they would rule and what we would do as a consequence of it.

Okay. Okay. I guess we'll wait for that ruling to come out. I guess separately, Tim, at a high level, when you look at some of what is perceived fears of new form factors and ways to interact with devices, there was some worry that given some of the developments in AI that there could be a world where dependence on screen based devices significantly diminishes. And I'm kind of curious to get your thoughts on if do you think that would happen and and rate and pace in which, and and how do you think Apple is preparing in in in that case?

Apple (AAPL) Q3 2025 Earnings Call Transcript

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