MD&A sentences
Green marks more positive language; red marks more negative language.
neutral · +0.003
Management's Discussion and Analysis of Financial Condition and Results of Operations This Item and other sections of this Quarterly Report on Form 10-Q (“Form 10-Q”) contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties.
neutral · -0.002
Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.
neutral · +0.021
For example, statements in this Form 10-Q regarding the potential future impact of macroeconomic conditions and tariffs and other measures on the Company's business and results of operations are forward-looking statements .
neutral · +0.033
Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms.
negative · -0.571
Forward-looking statements are not guarantees of future performance and the Company's actual results may differ significantly from the results discussed in the forward-looking statements.
neutral · -0.024
Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of the 2025 Form 10-K and Part II, Item 1A of this Form 10-Q, in each case under the heading “Risk Factors.” The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.
neutral · -0.054
Unless otherwise stated, all information presented herein is based on the Company's fiscal calendar, and references to particular years, quarters, months or periods refer to the Company's fiscal years ended in September and the associated quarters, months and periods of those fiscal years.
neutral · +0.003
The following discussion should be read in conjunction with the 2025 Form 10-K filed with the U.S.
neutral · -0.010
Securities and Exchange Commission (“SEC”) and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q.
neutral · -0.004
Available Information The Company periodically provides certain information for investors on its corporate website, www.apple.com, and its investor relations website, investor.apple.com.
neutral · +0.002
This includes press releases and other information about financial performance, information on corporate governance, and details related to the Company's annual meeting of shareholders.
neutral · -0.018
The information contained on the websites referenced in this Form 10-Q is not incorporated by reference into this filing.
neutral · -0.062
Further, the Company's references to website URLs are intended to be inactive textual references only.
positive · +0.474
Business Seasonality and Product Introductions The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in part to seasonal holiday demand.
negative · -0.923
Additionally, new product and service introductions can significantly impact net sales, cost of sales and operating expenses.
negative · -0.948
The timing of product introductions can also impact the Company's net sales to its indirect distribution channels as these channels are filled with new inventory following a product launch, and channel inventory of an older product often declines as the launch of a newer product approaches.
negative · -0.740
Net sales can also be affected when consumers and distributors anticipate a product introduction.
neutral · +0.090
During the third quarter of 2026, the Company announced iOS 27, macOS ® 27 Golden Gate, iPadOS ® 27, watchOS ® 27, visionOS ® 27 and tvOS ® 27, and introduced Siri AI.
negative · -0.727
Macroeconomic Conditions Macroeconomic conditions, including inflation, interest rates, component pricing and currency fluctuations, have directly and indirectly impacted, and could in the future materially impact, the Company's results of operations and financial condition.
negative · -0.946
The Company is experiencing a period of supply constraints and increasing costs for components driven by factors such as industry supply-demand imbalances for components, including advanced semiconductors, storage (NAND) and memory (DRAM).
negative · -0.923
The Company expects these trends to intensify, which may materially negatively impact the Company's revenue, costs, gross margin, results of operations and financial condition.
negative · -0.904
Actions, such as price increases, that have been and may in the future be taken by the Company may not effectively mitigate these negative impacts, and may also reduce demand for the Company's products and materially adversely affect the Company's revenue, costs, gross margin, results of operations and financial condition.
positive · +0.476
| Q3 2026 Form 10-Q | 13 Tariffs and Other Measures Beginning in the second quarter of 2025, new tariffs were announced on imports to the U.S., including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the European Union (“EU”), among others.
negative · -0.847
In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the U.S.
neutral · +0.021
On January 14, 2026, initial results were published of the previously announced U.S.
neutral · -0.079
Department of Commerce investigation under Section 232 of the Trade Expansion Act of 1962, as amended, into imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including downstream products that contain semiconductors.
neutral · -0.010
The announcement of the initial results of the investigation did not impose any additional tariffs affecting the Company's products.
negative · -0.858
Supreme Court (“Supreme Court”) issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act of 1977.
positive · +0.557
The Company has applied for a refund of tariffs paid, following the processes established by U.S.
positive · +0.887
Customs and Border Protection, and has recognized any refunds received as a reduction of products cost of sales.
neutral · +0.047
tariffs have been announced, including the recent imposition of tariffs under Section 301 of the Trade Act of 1974, and further changes could be made in the future, which may include additional measures under the Section 232 semiconductor sector investigation, additional sector-based tariffs, further actions under Section 301, or other measures.
negative · -0.820
Tariffs and other measures that are applied to the Company's products or their components can have a material adverse impact on the Company's business, results of operations and financial condition, including impacting the Company's supply chain, the availability of rare earths and other raw materials and components, pricing and gross margin.
neutral · -0.024
The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S.
neutral · -0.011
tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures.
negative · -0.947
Trade and other international disputes can have an adverse impact on the overall macroeconomic environment and result in shifts and reductions in consumer spending and negative consumer sentiment for the Company's products and services, all of which can further adversely affect the Company's business and results of operations.
positive · +0.915
Segment Operating Performance The following table shows net sales by reportable segment for the three- and nine-month periods ended June 27, 2026 and June 28, 2025 (dollars in millions): Americas Americas net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales of iPhone, Services and Mac.
positive · +0.935
Europe Europe net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales of iPhone, Services and Mac.
positive · +0.910
The strength in foreign currencies relative to the U.S.
positive · +0.888
dollar had a net favorable year-over-year impact on Europe net sales during the first nine months of 2026.
positive · +0.930
Greater China Greater China net sales increased during the third quarter and first nine months of 2026 compared to the same periods in 2025 primarily due to higher net sales of iPhone.