U.S. Markets closed

Apple Reports Third Quarter Results

  • Oops!
    Something went wrong.
    Please try again later.
·9 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

iPhone and Services drive June quarter record revenue

Active installed base of devices reaches all-time high for all major product categories

CUPERTINO, Calif., July 28, 2022--(BUSINESS WIRE)--Apple® today announced financial results for its fiscal 2022 third quarter ended June 25, 2022. The Company posted a June quarter revenue record of $83.0 billion, up 2 percent year over year, and quarterly earnings per diluted share of $1.20.

"This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers," said Tim Cook, Apple’s CEO. "As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone."

"Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category," said Luca Maestri, Apple’s CFO. "During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans."

Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on August 11, 2022 to shareholders of record as of the close of business on August 8, 2022.

Apple will provide live streaming of its Q3 2022 financial results conference call beginning at 2:00 p.m. PT on July 28, 2022 at apple.com/investor/earnings-call. This webcast will be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the payment of the Company’s quarterly dividend and its plans for new features and products. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, war, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.

© 2022 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares which are reflected in thousands and per share amounts)

Three Months Ended

Nine Months Ended

June 25,
2022

June 26,
2021

June 25,
2022

June 26,
2021

Net sales:

Products

$

63,355

$

63,948

$

245,241

$

232,309

Services

19,604

17,486

58,941

50,148

Total net sales (1)

82,959

81,434

304,182

282,457

Cost of sales:

Products

41,485

40,899

155,084

149,476

Services

5,589

5,280

16,411

15,319

Total cost of sales

47,074

46,179

171,495

164,795

Gross margin

35,885

35,255

132,687

117,662

Operating expenses:

Research and development

6,797

5,717

19,490

16,142

Selling, general and administrative

6,012

5,412

18,654

16,357

Total operating expenses

12,809

11,129

38,144

32,499

Operating income

23,076

24,126

94,543

85,163

Other income/(expense), net

(10

)

243

(97

)

796

Income before provision for income taxes

23,066

24,369

94,446

85,959

Provision for income taxes

3,624

2,625

15,364

11,830

Net income

$

19,442

$

21,744

$

79,082

$

74,129

Earnings per share:

Basic

$

1.20

$

1.31

$

4.86

$

4.42

Diluted

$

1.20

$

1.30

$

4.82

$

4.38

Shares used in computing earnings per share:

Basic

16,162,945

16,629,371

16,277,824

16,772,656

Diluted

16,262,203

16,781,735

16,394,937

16,941,527

(1) Net sales by reportable segment:

Americas

$

37,472

$

35,870

$

129,850

$

116,486

Europe

19,287

18,943

72,323

68,513

Greater China

14,604

14,762

58,730

53,803

Japan

5,446

6,464

20,277

22,491

Rest of Asia Pacific

6,150

5,395

23,002

21,164

Total net sales

$

82,959

$

81,434

$

304,182

$

282,457

(1) Net sales by category:

iPhone

$

40,665

$

39,570

$

162,863

$

153,105

Mac

7,382

8,235

28,669

26,012

iPad

7,224

7,368

22,118

23,610

Wearables, Home and Accessories

8,084

8,775

31,591

29,582

Services

19,604

17,486

58,941

50,148

Total net sales

$

82,959

$

81,434

$

304,182

$

282,457

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares which are reflected in thousands and par value)

June 25,
2022

September 25,
2021

ASSETS:

Current assets:

Cash and cash equivalents

$

27,502

$

34,940

Marketable securities

20,729

27,699

Accounts receivable, net

21,803

26,278

Inventories

5,433

6,580

Vendor non-trade receivables

20,439

25,228

Other current assets

16,386

14,111

Total current assets

112,292

134,836

Non-current assets:

Marketable securities

131,077

127,877

Property, plant and equipment, net

40,335

39,440

Other non-current assets

52,605

48,849

Total non-current assets

224,017

216,166

Total assets

$

336,309

$

351,002

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

Accounts payable

$

48,343

$

54,763

Other current liabilities

48,811

47,493

Deferred revenue

7,728

7,612

Commercial paper

10,982

6,000

Term debt

14,009

9,613

Total current liabilities

129,873

125,481

Non-current liabilities:

Term debt

94,700

109,106

Other non-current liabilities

53,629

53,325

Total non-current liabilities

148,329

162,431

Total liabilities

278,202

287,912

Commitments and contingencies

Shareholders’ equity:

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,095,378 and 16,426,786 shares issued and outstanding, respectively

62,115

57,365

Retained earnings

5,289

5,562

Accumulated other comprehensive income/(loss)

(9,297

)

163

Total shareholders’ equity

58,107

63,090

Total liabilities and shareholders’ equity

$

336,309

$

351,002

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Nine Months Ended

June 25,
2022

June 26,
2021

Cash, cash equivalents and restricted cash, beginning balances

$

35,929

$

39,789

Operating activities:

Net income

79,082

74,129

Adjustments to reconcile net income to cash generated by operating activities:

Depreciation and amortization

8,239

8,295

Share-based compensation expense

6,760

5,961

Deferred income tax expense/(benefit)

2,756

(737

)

Other

(61

)

(689

)

Changes in operating assets and liabilities:

Accounts receivable, net

4,561

(1,316

)

Inventories

1,049

(1,213

)

Vendor non-trade receivables

4,789

4,892

Other current and non-current assets

(3,289

)

(5,899

)

Accounts payable

(6,108

)

(1,786

)

Deferred revenue

260

1,738

Other current and non-current liabilities

(14

)

463

Cash generated by operating activities

98,024

83,838

Investing activities:

Purchases of marketable securities

(70,178

)

(94,052

)

Proceeds from maturities of marketable securities

24,203

49,880

Proceeds from sales of marketable securities

33,609

36,745

Payments for acquisition of property, plant and equipment

(7,419

)

(7,862

)

Payments made in connection with business acquisitions, net

(169

)

(13

)

Other

(1,183

)

(78

)

Cash used in investing activities

(21,137

)

(15,380

)

Financing activities:

Payments for taxes related to net share settlement of equity awards

(5,915

)

(5,855

)

Payments for dividends and dividend equivalents

(11,138

)

(10,827

)

Repurchases of common stock

(64,974

)

(66,223

)

Proceeds from issuance of term debt, net

13,923

Repayments of term debt

(6,750

)

(7,500

)

Proceeds from commercial paper, net

4,970

3,022

Other

(148

)

489

Cash used in financing activities

(83,955

)

(72,971

)

Decrease in cash, cash equivalents and restricted cash

(7,068

)

(4,513

)

Cash, cash equivalents and restricted cash, ending balances

$

28,861

$

35,276

Supplemental cash flow disclosure:

Cash paid for income taxes, net

$

12,251

$

18,536

Cash paid for interest

$

1,910

$

1,870

View source version on businesswire.com: https://www.businesswire.com/news/home/20220728005969/en/

Contacts

Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142

Investor Relations Contact:
Tejas Gala
Apple
tgala@apple.com
(669) 227-2402