Apple Reports Fourth Quarter Results

Rhea-AI Summary

Apple reported a record revenue of $90.1 billion and earnings per share (EPS) of $1.29 for the September quarter, marking an 8% and 4% increase year over year, respectively. Annual revenue reached $394.3 billion, up 8%, while annual EPS rose to $6.11, a 9% increase. These results underscore Apple's resilience amidst macroeconomic challenges and highlight the strength of its ecosystem, with a record active installed base of devices. The company returned over $29 billion to shareholders and declared a cash dividend of $0.23 per share for November.

Positive

• Record revenue of $90.1 billion for Q4, up 8% YoY.
• Quarterly EPS increased to $1.29, a 4% YoY rise.
• Annual revenue reached $394.3 billion, 8% increase YoY.
• Annual EPS rose to $6.11, up 9% YoY.
• Generated over $24 billion in operating cash flow.
• Returned over $29 billion to shareholders.

Negative

• None.

September quarter record for Revenue and EPS

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

CUPERTINO, Calif.--(BUSINESS WIRE)-- Apple® today announced financial results for its fiscal 2022 fourth quarter ended September 24, 2022. The Company posted a September quarter record revenue of $90.1 billion, up 8 percent year over year, and quarterly earnings per diluted share of $1.29, up 4 percent year over year. Annual revenue was $394.3 billion, up 8 percent year over year, and annual earnings per diluted share were $6.11, up 9 percent year over year.

“This quarter’s results reflect Apple’s commitment to our customers, to the pursuit of innovation, and to leaving the world better than we found it,” said Tim Cook, Apple’s CEO. “As we head into the holiday season with our most powerful lineup ever, we are leading with our values in every action we take and every decision we make. We are deeply committed to protecting the environment, to securing user privacy, to strengthening accessibility, and to creating products and services that can unlock humanity’s full creative potential.”

“Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop,” said Luca Maestri, Apple’s CFO. “We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter. The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high. This quarter capped another record-breaking year for Apple, with revenue growing over $28 billion and operating cash flow up $18 billion versus last year.”

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 November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.

Apple will provide live streaming of its Q4 2022 financial results conference call beginning at 2:00 p.m. PT on October 27, 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, its environmental initiatives, and its plans for new features, products, and long-term growth. 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								Twelve Months Ended
	September 24, 2022				September 25, 2021				September 24, 2022				September 25, 2021
Net sales:
Products	$	70,958			$	65,083			$	316,199			$	297,392
Services		19,188				18,277				78,129				68,425
Total net sales (1)		90,146				83,360				394,328				365,817
Cost of sales:
Products		46,387				42,790				201,471				192,266
Services		5,664				5,396				22,075				20,715
Total cost of sales		52,051				48,186				223,546				212,981
Gross margin		38,095				35,174				170,782				152,836
Operating expenses:
Research and development		6,761				5,772				26,251				21,914
Selling, general and administrative		6,440				5,616				25,094				21,973
Total operating expenses		13,201				11,388				51,345				43,887
Operating income		24,894				23,786				119,437				108,949
Other income/(expense), net		(237	)			(538	)			(334	)			258
Income before provision for income taxes		24,657				23,248				119,103				109,207
Provision for income taxes		3,936				2,697				19,300				14,527
Net income	$	20,721			$	20,551			$	99,803			$	94,680
Earnings per share:
Basic	$	1.29			$	1.25			$	6.15			$	5.67
Diluted	$	1.29			$	1.24			$	6.11			$	5.61
Shares used in computing earnings per share:
Basic		16,030,382				16,487,121				16,215,963				16,701,272
Diluted		16,118,465				16,635,097				16,325,819				16,864,919
(1) Net sales by reportable segment:
Americas	$	39,808			$	36,820			$	169,658			$	153,306
Europe		22,795				20,794				95,118				89,307
Greater China		15,470				14,563				74,200				68,366
Japan		5,700				5,991				25,977				28,482
Rest of Asia Pacific		6,373				5,192				29,375				26,356
Total net sales	$	90,146			$	83,360			$	394,328			$	365,817
(1) Net sales by category:
iPhone	$	42,626			$	38,868			$	205,489			$	191,973
Mac		11,508				9,178				40,177				35,190
iPad		7,174				8,252				29,292				31,862
Wearables, Home and Accessories		9,650				8,785				41,241				38,367
Services		19,188				18,277				78,129				68,425
Total net sales	$	90,146			$	83,360			$	394,328			$	365,817

Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value)
	September 24, 2022				September 25, 2021
ASSETS:
Current assets:
Cash and cash equivalents	$	23,646			$	34,940
Marketable securities		24,658				27,699
Accounts receivable, net		28,184				26,278
Inventories		4,946				6,580
Vendor non-trade receivables		32,748				25,228
Other current assets		21,223				14,111
Total current assets		135,405				134,836
Non-current assets:
Marketable securities		120,805				127,877
Property, plant and equipment, net		42,117				39,440
Other non-current assets		54,428				48,849
Total non-current assets		217,350				216,166
Total assets	$	352,755			$	351,002
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	64,115			$	54,763
Other current liabilities		60,845				47,493
Deferred revenue		7,912				7,612
Commercial paper		9,982				6,000
Term debt		11,128				9,613
Total current liabilities		153,982				125,481
Non-current liabilities:
Term debt		98,959				109,106
Other non-current liabilities		49,142				53,325
Total non-current liabilities		148,101				162,431
Total liabilities		302,083				287,912
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,943,425 and 16,426,786 shares issued and outstanding, respectively		64,849				57,365
Retained earnings/(Accumulated deficit)		(3,068	)			5,562
Accumulated other comprehensive income/(loss)		(11,109	)			163
Total shareholders’ equity		50,672				63,090
Total liabilities and shareholders’ equity	$	352,755			$	351,002

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)
	Twelve Months Ended
	September 24, 2022				September 25, 2021
Cash, cash equivalents and restricted cash, beginning balances	$	35,929			$	39,789
Operating activities:
Net income		99,803				94,680
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization		11,104				11,284
Share-based compensation expense		9,038				7,906
Deferred income tax expense/(benefit)		895				(4,774	)
Other		111				(147	)
Changes in operating assets and liabilities:
Accounts receivable, net		(1,823	)			(10,125	)
Inventories		1,484				(2,642	)
Vendor non-trade receivables		(7,520	)			(3,903	)
Other current and non-current assets		(6,499	)			(8,042	)
Accounts payable		9,448				12,326
Deferred revenue		478				1,676
Other current and non-current liabilities		5,632				5,799
Cash generated by operating activities		122,151				104,038
Investing activities:
Purchases of marketable securities		(76,923	)			(109,558	)
Proceeds from maturities of marketable securities		29,917				59,023
Proceeds from sales of marketable securities		37,446				47,460
Payments for acquisition of property, plant and equipment		(10,708	)			(11,085	)
Payments made in connection with business acquisitions, net		(306	)			(33	)
Other		(1,780	)			(352	)
Cash used in investing activities		(22,354	)			(14,545	)
Financing activities:
Payments for taxes related to net share settlement of equity awards		(6,223	)			(6,556	)
Payments for dividends and dividend equivalents		(14,841	)			(14,467	)
Repurchases of common stock		(89,402	)			(85,971	)
Proceeds from issuance of term debt, net		5,465				20,393
Repayments of term debt		(9,543	)			(8,750	)
Proceeds from commercial paper, net		3,955				1,022
Other		(160	)			976
Cash used in financing activities		(110,749	)			(93,353	)
Decrease in cash, cash equivalents and restricted cash		(10,952	)			(3,860	)
Cash, cash equivalents and restricted cash, ending balances	$	24,977			$	35,929
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	19,573			$	25,385
Cash paid for interest	$	2,865			$	2,687

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006041/en/

Press Contact:

Josh Rosenstock

Apple

jrosenstock@apple.com

(408) 862-1142

Investor Relations Contact:

Tejas Gala

Apple

tgala@apple.com

(669) 227-2402

Source: Apple Inc.

FAQ

What were Apple's Q4 2022 earnings results?

Apple reported record Q4 2022 revenue of $90.1 billion and EPS of $1.29.

How much revenue did Apple generate for the fiscal year 2022?

Apple generated annual revenue of $394.3 billion for the fiscal year 2022.

What is the cash dividend declared by Apple for November 2022?

Apple declared a cash dividend of $0.23 per share payable on November 10, 2022.

What was Apple's operating cash flow for Q4 2022?

Apple generated over $24 billion in operating cash flow for Q4 2022.

How did Apple perform compared to the previous year in Q4 2022?

Apple's Q4 2022 results showed an 8% increase in revenue and a 4% increase in EPS compared to the same quarter last year.