Apple Reports Third Quarter Results

Rhea-AI Summary

Apple reported a record revenue of $83.0 billion for the fiscal 2022 third quarter ending June 25, a 2% increase year-over-year. The company achieved earnings per diluted share of $1.20 and an all-time high active installed base across all major product categories. Operating cash flow reached nearly $23 billion, with over $28 billion returned to shareholders. A dividend of $0.23 per share was declared, payable on August 11, 2022. Apple continues to focus on innovation and user-centric product development.

Positive

• Record revenue of $83.0 billion for Q3 2022, up 2% YoY.
• Earnings per diluted share of $1.20.
• Active device installed base at an all-time high across all categories.
• Generated nearly $23 billion in operating cash flow.
• Returned over $28 billion to shareholders.

Negative

• None.

iPhone and Services drive June quarter record revenue

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 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/

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 was Apple's revenue for Q3 2022?

Apple reported a revenue of $83.0 billion for Q3 2022.

What were Apple's earnings per share for Q3 2022?

Apple's earnings per diluted share for Q3 2022 were $1.20.

When will Apple pay its dividend for Q3 2022?

Apple's dividend of $0.23 per share will be payable on August 11, 2022.

What is the installed base of Apple devices?

Apple's active installed base reached an all-time high across all major product categories.

How much cash flow did Apple generate in Q3 2022?

Apple generated nearly $23 billion in operating cash flow in Q3 2022.