Apple (AAPL)
Information Technology · $4.98T market cap · SEC CIK 0000320193
fundamentals score out of 100
Next reports on Oct 28, 2026, after the close, with analysts expecting $2.02 in earnings per share.
The case for AAPL
- Generated $98.8B of free cash flow in FY2025, 24% of revenue.
- Earns 137% on shareholder equity.
- 28% of revenue drops through to net profit.
- Revenue growing 14.2% year over year.
- Earnings per share up 32.6%.
- Within 1% of its 52-week high: the trend is up.
The case against
- Pricey at 38.6× earnings, against a long-run market average nearer 20×.
- Priced at 38× book value. Very little hard asset backing here.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 31 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 57 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 79 |
| Momentumhow the price has behaved lately | 85 |
| Stabilityhow violently it moves, what it owes and what it pays you | 79 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 38.6× |
|---|---|
| Price / book | 38.49× |
| Price / sales | 10.7× |
| Revenue growth (YoY) | +14.2% |
| EPS growth (YoY) | +32.6% |
| Gross margin | 49% |
| Operating margin | 33% |
| Net margin | 28% |
| Return on equity | 137% |
| Debt / equity | 0.78× |
| Current ratio | 1.00 |
| Dividend yield | 0.51% |
| Beta | 1.10 |
| 52-week range | $240.21 – $344.57 |
| Position in that range | 95% of the way up |
| 3-month return | +13.7% |
| 1-year return | +38.1% |
Five years of financials, as filed
Pulled from Apple's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $416B | $391B | $383B | $394B | $366B |
| Gross profit | $195B | $181B | $169B | $171B | $153B |
| Operating income | $133B | $123B | $114B | $119B | $109B |
| Net income | $112B | $93.7B | $97.0B | $99.8B | $94.7B |
| Operating cash flow | $111B | $118B | $111B | $122B | $104B |
| Capital expenditure | $12.7B | $9.4B | $11.0B | $10.7B | $11.1B |
| Total assets | $379B | $344B | $354B | $347B | $381B |
| Total liabilities | $291B | $277B | $279B | $290B | $309B |
| Shareholder equity | $88.2B | $66.8B | $74.1B | $56.7B | $71.9B |
| Cash | $45.3B | $30.3B | $40.8B | $20.5B | $37.1B |
| Long-term debt | $76.7B | $84.0B | $95.1B | $99.6B | $107B |
| Free cash flow | $98.8B | $109B | $99.6B | $111B | $93.0B |
| Gross margin | 46.9% | 46.2% | 44.1% | 43.3% | 41.8% |
| Operating margin | 32.0% | 31.5% | 29.8% | 30.3% | 29.8% |
| Net margin | 26.9% | 24.0% | 25.3% | 25.3% | 25.9% |
| Diluted shares | 15.0B | 15.4B | 15.8B | 16.3B | 16.9B |
Share count is down 11.0% over 4 years. Buybacks have been shrinking the pie.
What Apple says it does
Company Background The Company designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. Products iPhone iPhone ® is the Company’s line of smartphones based on its iOS operating system. The iPhone line includes iPhone 17 Pro, iPhone Air™, iPhone 17, iPhone 16 and iPhone 16e. Mac Mac ® is the Company’s line of personal computers based on its macOS ® operating system. The Mac line includes laptops MacBook Air ® and MacBook Pro ® , as well as desktops iMac ® , Mac mini ® , Mac Studio ® and Mac Pro ® . iPad iPad ® is the Company’s line of multipurpose tablets based on its iPadOS ® operating system. The iPad line includes iPad Pro ® , iPad Air ® , iPad and iPad mini ® . Wearables,…
Risk factors AAPL lists in its 10-K
- Global markets for the Company’s products and services are highly competitive and subject to rapid technological change, and the Company may be unable to compete effectively in these markets
- To remain competitive and stimulate customer demand, the Company must successfully manage frequent introductions and transitions of products and services
- The Company depends on component and product manufacturing and logistical services provided by outsourcing partners, many of which are located outside of the U.S
- Future operating results depend upon the Company’s ability to obtain components in sufficient quantities on commercially reasonable terms
- The Company’s products and services may be affected from time to time by design and manufacturing defects that could materially adversely affect the Company’s business and result in harm to the Company’s reputation
- The Company is exposed to the risk of write-downs on the value of its inventory and other assets, in addition to purchase commitment cancellation risk
- The Company relies on access to third-party intellectual property, which may not be available to the Company on commercially reasonable terms, or at all
- The Company’s future performance depends in part on support from third-party software developers
- The Company depends on the performance of carriers and other resellers
- The Company’s business and reputation are impacted by information technology system failures and network disruptions
- Losses or unauthorized access to or releases of confidential information, including personal information, could subject the Company to significant reputational, financial, legal and operational consequences
- Legal and Regulatory Compliance Risks
- The Company’s business, results of operations and financial condition could be adversely impacted by unfavorable results of legal proceedings or government investigations
- The Company is subject to complex and changing laws and regulations worldwide, which exposes the Company to potential liabilities, increased costs and other adverse effects on the Company’s business