AI Takeaway
Apple delivered a strong fiscal Q4 2025, with revenue surging 15.7% YoY to $143.8B, net income rising 15.9% to $42.1B, and operating cash flow jumping 80.1% to $53.9B, reflecting broad-based growth and expanding margins.
Revenue
$143.76B
++15.65% YoY
EPS (Basic)
$2.85
++18.26% YoY
Gross Margin
48.2%
++1.28% YoY
Operating Income
$50.85B
++18.72% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Apple's total revenue grew 15.7% YoY to $143.8B in Q4 2025, up from $124.3B in the prior-year period, marking a significant acceleration that suggests strong demand across product and services segments.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Gross margin improved 130 basis points YoY to 48.2% (from 46.9%), while operating margin expanded 92 bps to 35.4%, indicating Apple is achieving greater operating leverage and a favorable mix shift, likely toward higher-margin services.
Source: Source: 10-Q Key Ratios (XBRL Financial Data)
R&D expenses jumped 31.7% YoY to $10.9B, far outpacing revenue growth of 15.7%, signaling Apple is making substantial investments in next-generation technologies, potentially including AI, mixed reality, and silicon development.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockApple's current ratio stands at 0.97, meaning current liabilities of $162.4B slightly exceed current assets of $158.1B. While Apple's strong cash generation typically mitigates this risk, it indicates the company relies on ongoing cash flows and short-term financing to meet near-term obligations. Any disruption to cash generation could create liquidity pressure.
Source: Source: 10-Q Balance Sheet & Key Ratios (XBRL Financial Data)
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Upgrade to unlockReported EPS of $2.84 versus the $2.73 analyst consensus — a +4.2% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $143.76B | $124.3B | +15.65% |
Cost of Revenue | $74.53B | $66.03B | +12.87% |
Gross Profit | $69.23B | $58.27B | +18.80% |
Operating Income | $50.85B | $42.83B | +18.72% |
Net Income | $42.1B | $36.33B | +15.87% |
EPS (Basic) | $2.85 | $2.41 | +18.26% |
EPS (Diluted) | $2.84 | $2.40 | +18.33% |
R&D Expense | $10.89B | $8.27B | +31.68% |
SG&A Expense | $7.49B | $7.17B | +4.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $379.3B | $344.08B | +10.23% |
Current Assets | $158.1B | $133.24B | +18.66% |
Total Liabilities | $291.11B | $277.33B | +4.97% |
Current Liabilities | $162.37B | $144.37B | +12.47% |
Stockholders' Equity | $88.19B | $66.76B | +32.10% |
Cash & Equivalents | $45.32B | $30.3B | +49.57% |
Long-Term Debt | $88.5B | $94.8B | -6.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $53.92B | $29.93B | +80.14% |
Investing Cash Flow | $-4.89B | $9.79B | -149.90% |
Financing Cash Flow | $-39.66B | $-39.37B | -0.72% |
Dividends Paid | $3.92B | $3.86B | +1.69% |
Share Buybacks | $24.7B | $23.61B | +4.64% |
D&A | $3.21B | $3.08B | +4.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 48.2% | 46.9% | +1.28% |
Operating Margin | 35.4% | 34.5% | +0.92% |
Net Margin | 29.3% | — | — |
ROE | 47.7% | — | — |
ROA | 11.1% | — | — |
Current Ratio | $0.974 | — | — |
Debt to Equity | $3.301 | — | — |
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Apple delivered a strong Q4 2025, with revenue of $143.8B (+15.7% YoY), net income of $42.1B (+15.9% YoY), and diluted EPS of $2.84 (+18.3% YoY). Operating cash flow was a standout, surging 80.1% YoY to $53.9B, reflecting excellent earnings quality.
The key takeaways are: revenue growth accelerated to 15.7%, gross margins expanded to 48.2%, and operating cash flow nearly doubled YoY to $53.9B. Apple also significantly increased R&D spending by 31.7% to $10.9B, signaling heavy investment in future technologies. Shareholder returns remained strong at ~$28.6B via buybacks and dividends.
Yes, Apple expanded both gross and operating margins in Q4 2025. Gross margin improved to 48.2% from 46.9% a year ago, and operating margin rose to 35.4% from 34.5%, suggesting a favorable revenue mix shift and improving operational leverage despite a sharp increase in R&D spending.
Apple returned approximately $28.6B to shareholders in Q4 2025, comprising $24.7B in share repurchases (up 4.6% YoY) and $3.9B in dividends (up 1.7% YoY). This robust capital return program is supported by Apple's $53.9B in operating cash flow generated during the quarter.
Key financial risks include a current ratio below 1.0 (0.97), meaning current liabilities of $162.4B slightly exceed current assets, and a high debt-to-equity ratio of 3.30 reflecting $291.1B in total liabilities. Additionally, R&D expenses grew 31.7% YoY to $10.9B — more than double the pace of revenue growth — which could pressure margins if these investments do not generate commensurate returns.