Published 2026-11-02. Every figure comes from Apple's annual report, saved here.
From the top to the bottom
Read it as a waterfall. Each line takes something away from the one above.
| Line | $ millions | What it means |
|---|---|---|
| Net sales | 416,161 | Everything customers paid. Also called revenue. |
| Cost of sales | 220,960 | What it cost to make or buy what was sold. |
| Gross margin | 195,201 | Sales minus the cost of sales. |
| Research and development | 34,550 | Spending on future products. |
| Selling, general and administrative | 27,601 | Salaries, marketing and offices. |
| Operating income | 133,050 | The profit from running the business. |
| Other income and expense, net | -321 | Interest and items outside the main business. |
| Income taxes | 20,719 | Tax on the profit. |
| Net income | 112,010 | What was left for the shareholders. |
At the very bottom sits earnings per share: net income split across the shares, which for Apple came to $7.46.
Three ratios that make it comparable
A large number means little on its own. Divide each profit line by sales and you can compare it with other years and other companies.
- Gross margin, 46.9%. Out of every $100 of sales, $46.90 was left after making the products.
- Operating margin, 32.0%. What was left after running the business as well.
- Net margin, 26.9%. What was left after everything, tax included.
A supermarket and a software company will look nothing alike, and that is normal. Compare a company with its own past, and with others in its line of business.
Why you read the whole page
In fiscal 2024, Apple's operating income rose from $114,301 million to $123,216 million. Yet its net income fell, from $96,995 million to $93,736 million.
The business did not get worse. Income taxes jumped from $16,741 million to $29,749 million. Apple's next annual report says its tax bill then fell by $10.7 billion because of the State Aid Decision, a European tax case. That one case had swollen the 2024 bill.
So "Apple's profit fell in 2024" is true, and it misses what happened. One line can mislead you. The page around it usually explains why.
Where to find one
US companies publish an income statement in their annual report, the 10-K, and a shorter one each quarter in the 10-Q. Both are free on the SEC's site. You can also start from a company's page here.
Check it yourself
Check "Apple's operating income was $133 billion in fiscal 2025" against the filing.