CUPERTINO, California — April 28, 2022 — Apple® today announced financial results for its fiscal 2022 second quarter ended March 26, 2022. The Company posted a March quarter revenue record of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52.
“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” said Tim Cook, Apple’s CEO. “We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind.”
“We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter.”
Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock, an increase of 5 percent. The dividend is payable on May 12, 2022 to shareholders of record as of the close of business on May 9, 2022. The board of directors has also authorized an increase of $90 billion to the existing share repurchase program.
Apple will provide live streaming of its Q2 2022 financial results conference call beginning at 2:00 p.m. PT on April 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 Company’s plans for return of capital, the payment of its quarterly dividend, and its investment plans and environmental initiatives. 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: the effect of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on the Company’s business, including effects on purchasing decisions by consumers and businesses; the ability of the Company to compete in markets that are highly competitive and subject to rapid technological change; the ability of the Company to manage frequent introductions and transitions of products and services, including delivering to the marketplace, and stimulating customer demand for, new products, services, and technological innovations on a timely basis; the effect that shifts in the mix of products and services and in the geographic, currency, or channel mix, component cost increases, increases in the cost of developing, acquiring and delivering content for the Company’s services, price competition, or the introduction of new products or services, including new products or services with higher cost structures, could have on the Company’s gross margin; the dependency of the Company on the performance of distributors of the Company’s products, including cellular network carriers and other resellers; the risk of write-downs on the value of inventory and other assets and purchase commitment cancellation risk; the continued availability on acceptable terms, or at all, of certain components, services, and new technologies essential to the Company’s business, including components and technologies that may only be available from single or limited sources; the dependency of the Company on manufacturing and logistics services provided by third parties, many of which are located outside of the US and which may affect the quality, quantity, or cost of products manufactured or services rendered to the Company; the effect of product and services design and manufacturing defects on the Company’s financial performance and reputation; failure to obtain or create digital content that appeals to the Company’s customers, or to make such content available on commercially reasonable terms; the dependency of the Company on third-party intellectual property, which may not be available to the Company on commercially reasonable terms or at all; the dependency of the Company on support from third-party software developers to develop and maintain software applications and services for the Company’s products; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations worldwide, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company’s business; the intense media, political, and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions, and penalties; the ability of the Company to manage risks associated with the Company’s retail stores; the ability of the Company to manage risks associated with the Company’s investments in new business strategies and acquisitions; the impact on the Company’s business and reputation from information technology system failures, network disruptions, or losses or unauthorized access to, or release of, confidential information; the ability of the Company to comply with laws and regulations regarding data protection; the continued service and availability of highly skilled employees, including key personnel; political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s products; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of the Company’s investment portfolio; and changes in tax rates, the adoption of new US or international tax legislation, and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company’s business and financial results 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.
Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142
Investor Relations Contact:
Tejas Gala
Apple
tgala@apple.com
(669) 227-2402
NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months Ended
Six Months Ended
March 26, 2022
March 27, 2021
March 26, 2022
March 27, 2021
Net sales:
Products
$
77,457
$
72,683
$
181,886
$
168,361
Services
19,821
16,901
39,337
32,662
Total net sales (1)
97,278
89,584
221,223
201,023
Cost of sales:
Products
49,290
46,447
113,599
108,577
Services
5,429
5,058
10,822
10,039
Total cost of sales
54,719
51,505
124,421
118,616
Gross margin
42,559
38,079
96,802
82,407
Operating expenses:
Research and development
6,387
5,262
12,693
10,425
Selling, general and administrative
6,193
5,314
12,642
10,945
Total operating expenses
12,580
10,576
25,335
21,370
Operating income
29,979
27,503
71,467
61,037
Other income/(expense), net
160
508
(87)
553
Income before provision for income taxes
30,139
28,011
71,380
61,590
Provision for income taxes
5,129
4,381
11,740
9,205
Net income
$
25,010
$
23,630
$
59,640
$
52,385
Earnings per share:
Basic
$
1.54
$
1.41
$
3.65
$
3.11
Diluted
$
1.52
$
1.40
$
3.62
$
3.08
Shares used in computing earnings per share:
Basic
16,278,802
16,753,476
16,335,263
16,844,298
Diluted
16,403,316
16,929,157
16,461,304
17,021,423
(1) Net sales by reportable segment:
Americas
$
40,882
$
34,306
$
92,378
$
80,616
Europe
23,287
22,264
53,036
49,570
Greater China
18,343
17,728
44,126
39,041
Japan
7,724
7,742
14,831
16,027
Rest of Asia Pacific
7,042
7,544
16,852
15,769
Total net sales
$
97,278
$
89,584
$
221,223
$
201,023
(1) Net sales by category:
iPhone
$
50,570
$
47,938
$
122,198
$
113,535
Mac
10,435
9,102
21,287
17,777
iPad
7,646
7,807
14,894
16,242
Wearables, Home and Accessories
8,806
7,836
23,507
20,807
Services
19,821
16,901
39,337
32,662
Total net sales
$
97,278
$
89,584
$
221,223
$
201,023
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares which are reflected in thousands and par value)
March 26, 2022
September 25, 2021
ASSETS:
Current assets:
Cash and cash equivalents
$
28,098
$
34,940
Marketable securities
23,413
27,699
Accounts receivable, net
20,815
26,278
Inventories
5,460
6,580
Vendor non-trade receivables
24,585
25,228
Other current assets
15,809
14,111
Total current assets
118,180
134,836
Non-current assets:
Marketable securities
141,219
127,877
Property, plant and equipment, net
39,304
39,440
Other non-current assets
51,959
48,849
Total non-current assets
232,482
216,166
Total assets
$
350,662
$
351,002
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable
$
52,682
$
54,763
Other current liabilities
50,248
47,493
Deferred revenue
7,920
7,612
Commercial paper
6,999
6,000
Term debt
9,659
9,613
Total current liabilities
127,508
125,481
Non-current liabilities:
Term debt
103,323
109,106
Other non-current liabilities
52,432
53,325
Total non-current liabilities
155,755
162,431
Total liabilities
283,263
287,912
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,207,568 and 16,426,786 shares issued and outstanding, respectively
61,181
57,365
Retained earnings
12,712
5,562
Accumulated other comprehensive income/(loss)
(6,494)
163
Total shareholders’ equity
67,399
63,090
Total liabilities and shareholders’ equity
$
350,662
$
351,002
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
Six Months Ended
March 26, 2022
March 27, 2021
Cash, cash equivalents and restricted cash, beginning balances
$
35,929
$
39,789
Operating activities:
Net income
59,640
52,385
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization
5,434
5,463
Share-based compensation expense
4,517
4,001
Deferred income tax expense/(benefit)
1,088
(207)
Other
(20)
(474)
Changes in operating assets and liabilities:
Accounts receivable, net
5,542
(2,347)
Inventories
1,065
(1,226)
Vendor non-trade receivables
643
6,792
Other current and non-current assets
(3,542)
(4,333)
Accounts payable
(1,750)
(1,997)
Deferred revenue
627
1,642
Other current and non-current liabilities
1,888
3,045
Cash generated by operating activities
75,132
62,744
Investing activities:
Purchases of marketable securities
(61,987)
(74,424)
Proceeds from maturities of marketable securities
18,000
39,605
Proceeds from sales of marketable securities
24,668
21,645
Payments for acquisition of property, plant and equipment
(5,317)
(5,769)
Payments made in connection with business acquisitions, net
(167)
(9)
Other
(568)
—
Cash used in investing activities
(25,371)
(18,952)
Financing activities:
Payments for taxes related to net share settlement of equity awards
(3,218)
(3,160)
Payments for dividends and dividend equivalents
(7,327)
(7,060)
Repurchases of common stock
(43,109)
(43,323)
Proceeds from issuance of term debt, net
—
13,923
Repayments of term debt
(3,750)
(4,500)
Proceeds from commercial paper, net
999
22
Other
(105)
523
Cash used in financing activities
(56,510)
(43,575)
Increase/(Decrease) in cash, cash equivalents and restricted cash
(6,749)
217
Cash, cash equivalents and restricted cash, ending balances
