Fact Summary
Apple posted FY2026 Q2 (ended 2026-03-28) revenue of $111.2 billion (+17% year-over-year) and diluted EPS of $2.01 (+22%), with gross margin reaching 49.3%, the top end of the company's guided range (48-49%) (Apple 10-Q FY2026 Q2, earnings release 2026-04-30). FY2025 full-year revenue was $416.16 billion (+6% year-over-year) with net income of $112.01 billion, an all-time high (Apple 10-K FY2025, as of 2025-09-27). On 2026-04-20, Apple announced that Tim Cook would step down as CEO to become Executive Chairman, with John Ternus taking over as CEO effective 2026-09-01 (Apple Newsroom). FY2026 Q3 (June quarter) results are scheduled for release on 2026-07-30.
Price Context Note
The reference-date (2026-07-20) closing price fell -2.14% from the previous close to $326.59. Reports attributed the decline to cost pressure from surging memory (DRAM/NAND) prices driven by AI data-center demand and a decline in hardware gross margin (FY2026 Q1 40.7% → Q2 38.7%) (Trefis, Fool.com, 2026-07-20). During the same week, KeyBanc (2026-07-14) and HSBC (2026-07-17) issued analyst rating changes on Apple in opposite directions, ahead of the Q3 earnings release scheduled for 2026-07-30.
Valuation (Factual Multiples)
Note: Apple's active share buybacks have structurally reduced stockholders' equity (reported ROE of approximately 125.92%), a distinctive capital-structure characteristic that results in an elevated P/B ratio.
Business Overview
Apple designs, manufactures, and sells smartphones (iPhone), PCs (Mac), tablets (iPad), wearables (AirPods, Apple Watch, etc.), and services (App Store, iCloud, advertising, etc.) as an integrated hardware-and-services company. Its fiscal year ends on the last Saturday of September (FY2025 ended 2025-09-27), and headcount reached an all-time high of 166,000 FTE employees at the end of FY2025.
FY2025 revenue mix by product category (as of 2025-09-27, approximated on total revenue of $416,161 million). Source: Apple 10-K FY2025.
| Product Category | FY2025 Revenue | FY2024 Revenue | YoY |
|---|---|---|---|
| iPhone | $209,586 million | $201,183 million | +4% |
| Mac | $33,708 million | $29,984 million | +12% |
| iPad | $28,023 million | $26,694 million | +5% |
| Wearables, Home and Accessories | $35,686 million | $37,005 million | -4% |
| Services | $109,158 million | $96,169 million | +14% |
| Total | $416,161 million | $391,035 million | +6% |
FY2026 Q2 (ended 2026-03-28) revenue was $111.2 billion (+17% year-over-year), with Services revenue reaching an all-time high of $31 billion and gross margin at 49.3% (top of guided range). FY2026 Q3 (June quarter) results are scheduled for release on 2026-07-30 — not yet available (pre-release).
5-Year Financial Trends
Revenue plateaued and dipped slightly in FY2023-24 after peaking in FY2022, then rebounded in FY2025 (+6.43% YoY). Net income declined for two consecutive years after peaking in FY2022, then recovered to an all-time high in FY2025. Detailed gross margin and operating income figures for individual years FY2021-FY2024 are not available.
Peer Comparison
| Company | Market Cap | P/E (Trailing) |
|---|---|---|
| Apple(AAPL) | $4.90 trillion | 39.59 |
| Alphabet(GOOGL) | $4.29 trillion | 28.29 |
| Microsoft(MSFT) | $2.93 trillion | 24.33 |
| Samsung Electronics(005930.KS) | $1.08 trillion | 22.87 |
Smartphone market share (2026 Q1, Omdia): Samsung leads with 22%, Apple at 20% — the overall smartphone market contracted -6% YoY per Counterpoint. Apple and Google compete in mobile OS and AI, while Apple and Microsoft compete indirectly in enterprise software and cloud. P/B and EV/EBITDA figures for Microsoft, Alphabet, and Samsung are not available.
Macro Environment
| Factor | Value as of Reference Date | Relevance to Apple |
|---|---|---|
| US Federal Funds Rate | 3.50~3.75% | FOMC expected to hold rates at 2026-07-28~29 meeting |
| US 10-Year Treasury Yield | 4.60%(2026-07-20) | Rising yields pressure growth-stock valuations |
| US Dollar Index (DXY) | 100.92(2026-07-21) | Dollar weakness and euro/yuan strength are favorable for translating overseas revenue |
| IEEPA Tariffs on China | Ruled unconstitutional and void on 2026-02-20 | Structural easing of tariff burden, though Section 232 semiconductor tariffs remain separately in effect |
| DRAM/NAND Prices | +237%/+70% | Sharp rise in component costs → pressure on hardware gross margin |
| Greater China Revenue | $22.4 billion (FY26 Q2, +28.1%) | Strongest growth in four years on tariff relief and solid sales |
As of 2026-07-21. Source: TradingEconomics, CNBC, Apple 10-Q FY2026 Q2, Trefis. The confirmed Phase 2 tariff rate and effective date for Section 232 semiconductor tariffs, and the latest US durable-goods PCE figure, are not available.
Flow & Positioning Trends
The largest institutional holders, in order, are Vanguard Group, BlackRock, State Street, Geode Capital, and FMR (Fidelity) (2026 Q1 13F filings). Short interest peaked on 2026-05-29 (155.89 million shares, 1.1% of float) and has declined for two consecutive settlement dates (6/15, 6/30), remaining at a relatively low 140.53 million shares (0.96-1.0% of float) as of the latest settlement date (6/30). In the options market, as of 2026-07-14 the volume-based Put/Call Ratio was 0.82 and the open-interest-based ratio was 0.52, with both indicators in call-favoring territory.
Official 2026 Q2 (as of 6/30) 13F data is not yet available, as the filing deadline (around 2026-08-14) has not passed — reported institutional holding figures as of 6/30 are preliminary estimates. Days to Cover varies across sources (1.7 to 3.23 days). Margin debt balances, dark-pool trading share, and Form 4 insider-trading detail are outside the scope of this research.
Governance
| Shareholder | Shares Held | Ownership % | As of |
|---|---|---|---|
| The Vanguard Group (2025 data) | 1,415,826,462 shares | 9.63% | 2025-06-30 |
| BlackRock, Inc. (last confirmed update) | 1,043,713,019 shares | 7.10% | 2023-12-31 |
| Vanguard Capital Management LLC (new filing post-reorganization) | 1,099,168,953 shares | 7.48% | 2026-03-31 |
Following an internal reorganization at Vanguard Group on 2026-01-12, holdings previously reported under The Vanguard Group, Inc. began to be filed separately by affiliate (SC 13G/A, filed 2026-03-26). The combined ownership percentage across all Vanguard affiliates, as well as the latest 2026 ownership percentages for BlackRock, State Street, and Berkshire Hathaway, are not available.
The Chairman of the Board is Art Levinson, and the external auditor is Ernst & Young LLP (since 2009). On 2026-04-20, Apple announced that Tim Cook would step down as CEO to become Executive Chairman, with John Ternus (Senior Vice President of Hardware Engineering) taking over as CEO effective 2026-09-01 (Apple Newsroom, 2026-04-20). On 2026-04-30, the Board declared a cash dividend of $0.27 per share (+4% from the prior quarter) and approved an additional $100 billion share repurchase program (8-K Exhibit 99.1). Executive Form 4 filings during 2026-05 and 2026-06 reflect RSU vesting and tax-withholding dispositions, along with routine equity-compensation settlement sales (Code S); no filings indicating a change in control of 5% or more were identified.
Risk Factors
- Supply chain concentration: Approximately 90% of Apple products are manufactured in China, with cumulative tariff costs of $3.3 billion through FY2026 Q3 (Apple 10-K FY2025, 10-Q FY2026 Q2).
- Component cost / memory price surge: DRAM +237%, NAND +70% (vs. 2025 Q2), with hardware gross margin declining from 40.7% in FY2026 Q1 to 38.7% in Q2 (Trefis analysis, as of 2026-07-20).
- Antitrust/regulatory: EU DMA gatekeeper designation upheld (2026-07-09); in DOJ's antitrust case against Google, restrictions on the Apple-Google default search agreement are among the proposed remedies (10-K FY2025).
- Valuation burden: The current P/E (approximately 39-40x) is roughly 47% above the 10-year median of 26.83x.
The latest figure for the Apple-Google default search agreement and the final ruling date in the DOJ-Google case are not available.
Recent News Timeline
- 2026-07-20: Reference-date closing price fell -2.14% from the prior close, reported as profit-taking ahead of Q3 earnings (7/30) amid memory cost pressure (Fool.com, FX Leaders).
- 2026-07-17: Apple's market cap briefly reached $4.91 trillion, overtaking Nvidia as the world's largest company by market value (CNBC). The same day, Bloomberg reported discussions of an early settlement in the Apple-DOJ antitrust case.
- 2026-07-09: The EU General Court dismissed Apple's lawsuit challenging its Digital Markets Act (DMA) gatekeeper designation (JURIST).
- 2026-07-07: Per Counterpoint Research, iPhone sales in China fell 9% year-over-year during the 618 shopping festival period (5/26-6/21), though discount promotions helped Apple reclaim the No. 2 spot in the Chinese smartphone market.
- 2026-06-25: Apple announced price increases for Mac and iPad citing rising memory costs (e.g., MacBook Air 512GB from $1,099 to $1,299); the stock fell 6.1% on the announcement day (CNN Business, CNBC).
- 2026-06-08: Apple unveiled next-generation Apple Intelligence and Siri AI built on Google Gemini at WWDC26 (Apple Newsroom).
- 2026-04-30: FY2026 Q2 earnings released, with Greater China revenue of $22.4 billion (+28%); the Board approved a new $100 billion share repurchase program and a dividend increase.
- 2026-04-20: Official announcement of Tim Cook's departure as CEO and John Ternus's appointment as new CEO, effective 2026-09-01 (Apple Newsroom).
FY2026 Q3 results, scheduled for 2026-07-30, had not been released as of the analysis date (2026-07-21).
Theme Exposure
Fact Highlights
Generated by FomoLog Agent · Data sources: Korea Exchange (KRX) · NASDAQ · DART · SEC EDGAR