Download PDF

1. Company Snapshot

1.a. Company Description

Apple Inc.designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod.


It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts.In addition, the company offers various services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property.The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets.


It distributes third-party applications for its products through the App Store.The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers.Apple Inc.


was incorporated in 1977 and is headquartered in Cupertino, California.

Show Full description

1.b. Last Insights on AAPL

Apple's recent performance has been driven by several positive factors. The company's fiscal Q3 surge was fueled by growth in Apple Intelligence and a $600 billion U.S. investment plan, which offsets tariff headwinds. Additionally, a $100 billion increase in U.S. investment over the next four years could reshape Apple's future. The company's focus on AI has also changed analysts' perspectives, with some turning bullish on the stock. A $100 billion share buyback program authorized by the company will also have a positive impact on shareholders.

1.c. Company Highlights

2. Apple's Q4 FY2025 Earnings: A Record-Busting Quarter

Apple reported a stellar Q4 FY2025, with revenue reaching $102.5 billion, up 8% year-over-year and setting a new September quarter record. Services achieved an all-time revenue record of $28.8 billion, growing 15% from a year ago. The company's's iPhone revenue was $49 billion, up 6% year-over-year, driven by the iPhone 16 family. Earnings per share (EPS) came in at $1.85, beating estimates of $1.78. The company's gross margin stood at 47.2%, above the high end of guidance and up 70 basis points sequentially.

Publication Date: Oct -31

📋 Highlights
  • Total Revenue:: $102.5 billion, up 8% YoY and a September quarter record.
  • Services Revenue:: $28.8 billion, all-time high with 15% YoY growth.
  • iPhone Revenue:: $49 billion, 6% YoY increase, driven by iPhone 16 family.
  • Gross Margin:: 47.2%, exceeding guidance and up 70 bps sequentially.
  • Outlook:: 10-12% YoY revenue growth expected for December quarter, projected as record-breaking.

Segment Performance

iPhone revenue growth was broad-based, with the iPhone 16 family driving the increase. Mac revenue was $8.7 billion, up 13% year-over-year, driven by MacBook Air. Services revenue reached an all-time high, driven by a broad-based increase across categories and geographies. AppleCare and Apple Pay also contributed to the growth, with Apple Pay now available in nearly 90 countries.

Valuation and Outlook

With a P/E Ratio of 36.22, Apple's valuation appears to be pricing in significant growth expectations. The company's ROE stands at 164.05%, indicating high profitability. For FY2026, analyst estimates suggest revenue growth of 6.1%. Apple expects its December quarter total company revenue to grow by 10% to 12% year-over-year, which would be its best quarter ever. iPhone revenue is expected to grow double digits year-over-year, driven by the iPhone 17 family.

Operational Highlights

Apple's operational performance was strong, with operating cash flow reaching a September quarter record of $29.7 billion. The company returned $24 billion to shareholders during the quarter, including $3.9 billion in dividends and $20 billion through share repurchases. Apple's cash position remains robust, with $132 billion in cash and marketable securities.

Challenges and Opportunities

The company faces challenges related to tariffs, with a projected impact of $1.4 billion. However, Apple's diversified revenue streams and strong brand position it well to navigate these challenges. The iPhone Air has been well-received, and the company is seeing a rebound in iPhone sales in China. With a strong lineup of products and a growing services segment, Apple is poised for continued growth.

3. NewsRoom

Card image cap

1 Unstoppable Stock to Buy Before It Joins Nvidia, Apple, Microsoft, and Alphabet in the $3 Trillion Club

00:30

Source: fool.com

Card image cap

Why Apple's Momentum Isn't Accidental

Dec -06

Source: seekingalpha.com

Card image cap

META, NFLX, CRM, And More: 5 Stocks That Dominated Investor Buzz This Week

Dec -06

Source: feeds.benzinga.com

Card image cap

Here's Why Apple Is My Second Biggest Holding Going Into 2026

Dec -06

Source: fool.com

Card image cap

ERTS Wealth Advisors LLC Lowers Holdings in Apple Inc. $AAPL

Dec -06

Source: defenseworld.net

Card image cap

Apple Inc. $AAPL is Forsta AP Fonden’s 4th Largest Position

Dec -06

Source: defenseworld.net

Card image cap

Comprehensive Financial Planning Inc. PA Sells 2,085 Shares of Apple Inc. $AAPL

Dec -06

Source: defenseworld.net

Card image cap

Apple Inc. $AAPL Shares Acquired by Brickley Wealth Management

Dec -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.59%)

6. Segments

Americas

Expected Growth: 5.2%

Strong demand for iPhones and Macs, driven by consumer preferences for premium products, will fuel growth in North and South America, including the United States, and Latin America.

Europe

Expected Growth: 4.5%

Strong brand loyalty, increasing adoption of streaming services, and growing demand for premium products drive Apple's European segment growth, led by key markets such as the UK, Germany, and Italy.

Greater China

Expected Growth: 12.2%

Growing middle class and increasing adoption of premium smartphones in Taiwan and Hong Kong, and the Chinese government's efforts to promote domestic consumption in China

Rest of Asia Pacific

Expected Growth: 10.5%

Apple’s Asia Pacific segment is expected to grow, driven by increasing demand for premium smartphones and expanding 5G network infrastructure in Australia, New Zealand, and other countries in the region.

Japan

Expected Growth: 4.5%

Growing demand for premium smartphones and increasing adoption of remote work solutions drive Apple’s sales in Japan, driven by the popularity of iPhone and iPad.

7. Detailed Products

iPhone

A line of smartphones designed and marketed by Apple Inc.

Mac

A line of personal computers designed, developed, and marketed by Apple Inc.

iPad

A line of tablet computers designed, developed, and marketed by Apple Inc.

Apple Watch

A line of smartwatches designed, developed, and marketed by Apple Inc.

AirPods

A line of wireless earbuds designed, developed, and marketed by Apple Inc.

Apple TV

A line of digital media players designed, developed, and marketed by Apple Inc.

Apple Music

A music streaming service developed and marketed by Apple Inc.

iCloud

A cloud storage and cloud computing service developed and marketed by Apple Inc.

Apple Pay

A mobile payment and digital wallet service developed and marketed by Apple Inc.

Apple Care

A technical support and warranty service developed and marketed by Apple Inc.

8. Apple Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Apple's products are highly differentiated, making it difficult for substitutes to emerge. The company's strong brand loyalty and ecosystem also reduce the threat of substitutes.

Bargaining Power Of Customers

Apple's customers have some bargaining power due to the availability of alternative products. However, the company's strong brand loyalty and premium pricing strategy mitigate this power.

Bargaining Power Of Suppliers

Apple's suppliers have limited bargaining power due to the company's large scale and global presence. Apple's ability to negotiate prices and terms also reduces supplier power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the technology industry. Apple's strong brand, patents, and established distribution channels also make it difficult for new entrants to compete.

Intensity Of Rivalry

The technology industry is highly competitive, with many established players competing for market share. Apple faces intense rivalry from companies like Samsung, Google, and Amazon.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.32%
Debt Cost 3.95%
Equity Weight 33.68%
Equity Cost 10.09%
WACC 6.01%
Leverage 196.88%

11. Quality Control: Apple Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cisco

A-Score: 6.1/10

Value: 2.2

Growth: 4.1

Quality: 7.7

Yield: 5.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
IBM

A-Score: 5.5/10

Value: 1.5

Growth: 3.0

Quality: 6.3

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
QUALCOMM

A-Score: 5.3/10

Value: 3.4

Growth: 6.2

Quality: 8.1

Yield: 4.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
HP

A-Score: 5.2/10

Value: 8.2

Growth: 3.7

Quality: 4.8

Yield: 7.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
NetApp

A-Score: 5.2/10

Value: 3.4

Growth: 5.8

Quality: 7.2

Yield: 4.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Apple

A-Score: 5.1/10

Value: 1.0

Growth: 6.2

Quality: 8.5

Yield: 0.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

278.78$

Current Price

278.78$

Potential

-0.00%

Expected Cash-Flows