Apple (AAPL) Q3 2024 earnings summary

Executive summary

• Achieved record June quarter revenue of $85.8 billion, up 5% year-over-year, with EPS growing 11% to $1.40, and net income up 8% to $21.4 billion, both June quarter records.

• Services revenue reached an all-time high of $24.2 billion, up 14% year-over-year, and the installed base of active devices hit new records across all products and geographies.

• Launched Apple Intelligence, integrating advanced AI features across devices, and announced major OS updates and new iPad models.

• Returned over $32 billion to shareholders via dividends and share repurchases in the quarter.

• Installed base of active devices reached all-time highs in all regions.

Financial highlights

• Gross margin was $39.7 billion (46.3%), up from $36.4 billion (44.5%) year-over-year; product gross margin 35.3%, services gross margin 74%.

• Net income reached $21.4 billion; operating income was $25.4 billion, and operating cash flow was nearly $29 billion, all June quarter records.

• iPhone revenue was $39.3 billion, down 1% year-over-year; Mac revenue $7 billion, up 2%; iPad revenue $7.2 billion, up 24%; wearables, home, and accessories $8.1 billion, down 2%.

• Operating expenses were $14.3 billion, up 7% year-over-year; R&D expense grew 8% to $8.0 billion.

• Diluted EPS was $1.40, up from $1.26 year-over-year.

Outlook and guidance

• September quarter revenue expected to grow year-over-year at a rate similar to June quarter (+5%), with services revenue to grow double digits.

• Gross margin guidance for September quarter is 45.5%-46.5%; OpEx expected between $14.2-$14.4 billion.

• Management expects continued volatility in gross margins due to product mix, currency, and cost factors.

• Sufficient liquidity and access to capital markets expected to support operations and capital return program for the next 12 months and beyond.

• Foreign exchange expected to be a 1.5 percentage point headwind on revenue.