Financial Analysis

Commitments and Contingencies Unconditional Purchase Obligations The Company has entered into certain offbalance sheet commitments that require the future purchase of goods or services (unconditional purchase obligations). The Companys unconditional purchase obligations primarily consist of supplier arrangements, licensed intellectual property and content, and distribution rights. Future payments under unconditional purchase obligations with a remaining term in excess of one year as of June 27, 2026, are as follows (in millions): 2026 (remaining three months) $ 2,053 2027 7,652 2028 6,406 2029 5,421 2030 5,481 Thereafter 615 Total $ 27,628 Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Commercial Paper The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of June 27, 2026 and September 27, 2025, the Company had $2.0 billion and $8.0 billion of commercial paper outstanding, respectively. The following table provides a summary of cash flows associated with commercial paper for the nine months ended June 27, 2026 and June 28, 2025 (in millions): Nine Months Ended June 27, 2026 June 28, 2025 Maturities 90 days or less: Repayments of commercial paper, net $ (2,123) $ (5,690) Maturities greater than 90 days: Proceeds from commercial paper 5,625 Repayments of commercial paper (3,788) Proceeds from/(Repayments of) commercial paper, net (3,788) 5,625 Total repayments of commercial paper, net $ (5,911) $ (65) Term Debt As of June 27, 2026 and September 27, 2025, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $82.3 billion and $90.7 billion, respectively (collectively the Notes). As of June 27, 2026 and September 27, 2025, the fair value of the Companys Notes, based on Level 2 inputs, was $71.2 billion and $80.4 billion, respectively. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Share-Based Compensation Restricted Stock Units A summary of the Companys restricted stock unit (RSU) activity and related information for the nine months ended June 27, 2026, is as follows: Number of RSUs (in thousands) Weighted-Average Grant-Date Fair Value Per RSU Balance as of September 27, 2025 151,574 $ 189.75 RSUs granted 72,400 $ 258.16 RSUs vested (70,594) $ 184.72 RSUs forfeited (9,418) $ 213.67 Balance as of June 27, 2026 143,962 $ 225.06 The total vesting-date fair value of RSUs was $8.9 billion and $7.0 billion for the three months ended June 27, 2026 and June 28, 2025, respectively, and was $18.4 billion and $16.3 billion for the nine months ended June 27, 2026 and June 28, 2025, respectively. Share-Based Compensation The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended June 27, 2026 and June 28, 2025 (in millions): Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Share-based compensation expense $ 3,401 $ 3,168 $ 10,523 $ 9,680 Income tax benefit related to share-based compensation expense $ (1,122) $ (795) $ (3,217) $ (2,870) As of June 27, 2026, the total unrecognized compensation cost related to outstanding RSUs was $26.7 billion, which the Company expects to recognize over a weighted-average period of 2.7 years. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Revenue The following table shows disaggregated net sales, as well as the portion of total net sales that was previously deferred, for the three- and nine-month periods ended June 27, 2026 and June 28, 2025 (in millions): Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 iPhone $ 54,252 $ 44,582 $ 196,515 $ 160,561 Mac 10,352 8,046 27,137 24,982 iPad 6,191 6,581 21,700 21,071 Wearables, Home and Accessories 7,883 7,404 27,277 26,673 Services 30,739 27,423 91,728 80,408 Total net sales $ 109,417 $ 94,036 $ 364,357 $ 313,695 Portion of total net sales that was included in deferred revenue as of the beginning of the period $ 4,086 $ 4,015 $ 7,260 $ 6,958 The Companys proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, Segment Information for the three- and nine-month periods ended June 27, 2026 and June 28, 2025, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales. As of June 27, 2026 and September 27, 2025, the Company had total deferred revenue of $14.9 billion and $13.7 billion, respectively. As of June 27, 2026, the Company expects 64% of total deferred revenue to be realized in less than a year, 23% within one-to-two years, 11% within two-to-three years and 2% in greater than three years. …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information The following tables show information by reportable segment for the three- and nine-month periods ended June 27, 2026 and June 28, 2025 (in millions): Three Months Ended June 27, 2026 Americas Europe Greater China Japan Rest of Asia Pacific Corporate Total Net sales $ 45,781 $ 29,395 $ 18,816 $ 6,554 $ 8,871 $ $ 109,417 Cost of sales (21,507) (14,732) (10,771) (3,310) (4,327) (54,647) Research and development (11,729) (11,729) Selling and marketing (2,573) (1,220) (639) (240) (362) (5,034) General and administrative (2,312) (2,312) Operating income/(loss) $ 21,701 $ 13,443 $ 7,406 $ 3,004 $ 4,182 $ (14,041) $ 35,695 Three Months Ended June 28, 2025 Americas Europe Greater China Japan Rest of Asia Pacific Corporate Total Net sales $ 41,198 $ 24,014 $ 15,369 $ 5,782 $ 7,673 $ $ 94,036 Cost of sales (22,174) (12,379) (8,970) (2,695) (4,100) (50,318) Research and development (8,866) (8,866) Selling and marketing (2,513) (1,134) (577) (215) (330) (4,769) General and administrative (1,881) (1,881) Operating income/(loss) $ 16,511 $ 10,501 $ 5,822 $ 2,872 $ 3,243 $ (10,747) $ 28,202 Nine Months Ended June 27, 2026 Americas Europe Greater China Japan Rest of Asia Pacific Corporate Total Net sales $ 149,403 $ 95,596 $ 64,839 $ 24,368 $ 30,151 $ $ 364,357 Cost of sales (76,470) (47,549) (34,434) (12,088) (15,034) (185,575) Research and development (34,035) (34,035) Selling and marketing (7,906) (3,762) (2,018) (824) (1,122) (15,632) General and administrative (6,683 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Shareholders Equity Share Repurchase Program During the nine months ended June 27, 2026, the Company repurchased 215 million shares of its common stock for $61.8 billion. The Companys share repurchase programs do not obligate the Company to acquire a minimum amount of shares. Under the programs, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (Exchange Act). …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing