Apple (AAPL) Financials

Apple’s supplied financial statements show continued earnings growth, strong cash generation and aggressive shareholder returns, although recent operating cash flow and liquidity trends warrant monitoring. The Q4 2026 income statement is labeled “calculated,” so investors should treat those figures as preliminary within this dataset.

Revenue increased to $114.5 billion in Q4 2026 from $102.5 billion in Q4 2025 and $94.9 billion in Q4 2024. Net income rose to $30.7 billion, compared with $27.5 billion and $14.7 billion in those respective periods. Diluted earnings per share increased to $2.11 from $1.84 in Q4 2025, supported by higher earnings and a lower share count.

Profitability remains strong. Q4 2026 gross profit was $54.8 billion, implying a gross margin of approximately 47.9%. Operating income was $35.6 billion, or roughly 31.1% of revenue, while net income represented approximately 26.8% of revenue. Operating expenses have grown more slowly than revenue over the longer period, although research and development spending has increased substantially.

Apple generated $28.1 billion in operating cash flow during Q4 2026. Capital expenditures were $2.2 billion, producing estimated quarterly free cash flow of approximately $25.9 billion. However, operating cash flow declined from $34.4 billion in Q3 2026, primarily as changes in operating assets and liabilities became a larger use of cash.

• Revenue and earnings continue to expand: Q4 2026 revenue grew approximately 11.7% year over year, while net income increased approximately 11.8% versus Q4 2025.
• EPS growth is outpacing net income growth: Diluted EPS rose from $1.84 to $2.11 year over year, reflecting both higher earnings and ongoing share repurchases.
• Apple continues to produce substantial free cash flow: Q4 operating cash flow of $28.1 billion comfortably exceeded capital expenditures of $2.2 billion.
• Shareholder returns remain significant: Apple repurchased approximately $24.3 billion of stock and paid $3.9 billion in dividends in Q4 2026.
• Long-term profitability has improved: Q4 operating income increased from $26.97 billion in 2023 to $35.63 billion in 2026, despite higher investment in research and development.
• Balance-sheet assets have expanded: Total assets reached $383.3 billion in the latest supplied balance sheet, up from $331.5 billion in Q3 2025.
• Investment portfolio activity is volatile: Apple purchased $6.2 billion of investments and received $10.6 billion from investment sales or maturities in Q4 2026. These transactions affect reported investing cash flow but do not necessarily indicate a change in core operations.
• Research and development spending remains elevated: Q4 R&D expense was $11.7 billion, representing about 10.2% of revenue. This may support future products and services, but it also places pressure on near-term operating leverage.
• Operating cash flow weakened sequentially: Q4 operating cash flow fell approximately 18% from Q3 2026, and changes in operating assets and liabilities represented an $11.9 billion cash use.
• Liquidity is relatively tight compared with current obligations: Q3 2026 current assets of $149.8 billion were only slightly above current liabilities of $149.3 billion. Cash and short-term investments totaled approximately $62.4 billion, while total debt was about $84.3 billion.

The balance sheet also reflects the impact of Apple’s capital-return program. Total common equity increased to $107.5 billion in the latest supplied quarter from $65.8 billion in Q3 2025, but liabilities remained substantial at $275.7 billion. The company’s strong recurring cash generation provides flexibility, yet the combination of large buybacks, dividends and debt repayments caused financing cash outflows of $32.9 billion and contributed to a $3.2 billion decline in cash and equivalents during Q4 2026.

Overall, the supplied data points to a financially strong company with rising revenue, durable margins, improving EPS and substantial free cash flow. The primary issues for investors are whether operating cash flow rebounds, whether elevated R&D spending produces faster growth, and whether continued buybacks and dividends remain balanced with liquidity and debt requirements.