Apple Inc. Q4 2024 Financial Results

Quarterly Highlights

Apple Inc. (NASDAQ: AAPL) today announced financial results for its fiscal 2024 fourth quarter ended September 28, 2024.

Revenue and Profitability

Total revenue for Q4 2024 reached $89.5 billion, representing a 12% year-over-year growth compared to $79.9 billion in Q4 2023. This performance exceeded analyst expectations of $87.2 billion.

Net income for the quarter was $25.3 billion, up from $22.1 billion in the year-ago quarter, representing a 14.5% YoY increase. The company's net profit margin improved to 28.3%, compared to 27.7% in Q4 2023.

Earnings Per Share

Diluted earnings per share (EPS) reached $1.56, compared to $1.35 in Q4 2023, representing a 15.6% year-over-year increase. This surpassed Wall Street consensus estimates of $1.52 per share.

Segment Performance

iPhone segment revenue was $43.2 billion, up 8% year-over-year. Mac revenue reached $9.7 billion, growing 25% YoY driven by strong demand for M3-powered devices.

Services revenue set a new all-time record of $22.3 billion, increasing 16% compared to the year-ago quarter. iPad revenue was $6.4 billion, representing a 10% YoY growth.

Wearables, Home and Accessories revenue totaled $7.9 billion, up 3% year-over-year.

Geographic Performance

Americas revenue was $40.1 billion, up 14% YoY. Europe contributed $24.3 billion, growing 9% year-over-year. Greater China revenue reached $15.1 billion, increasing 8% YoY. Japan revenue was $5.2 billion, up 12%, while Rest of Asia Pacific generated $4.8 billion, growing 11% YoY.

Operating Metrics

Gross margin for Q4 2024 was 46.2%, compared to 45.2% in the year-ago quarter, representing a 100 basis point improvement. Operating margin reached 32.5%, up from 31.4% in Q4 2023.

Operating expenses totaled $14.3 billion, or 16% of revenue, compared to $13.2 billion, or 16.5% of revenue, in Q4 2023.

Cash Flow and Capital Allocation

Operating cash flow for the quarter was $28.5 billion, compared to $25.8 billion in Q4 2023, representing a 10.5% increase. Free cash flow reached $26.1 billion, up from $23.5 billion in the year-ago quarter.

The company returned $29.7 billion to shareholders through dividends of $3.8 billion and share repurchases of $25.9 billion during the quarter.

Balance Sheet Strength

As of September 28, 2024, Apple had cash, cash equivalents, and marketable securities totaling $162.3 billion. Total debt was $106.6 billion, resulting in net cash of $55.7 billion.

The company's current ratio stood at 0.98, while the debt-to-equity ratio was 1.73.

Key Financial Ratios

Return on equity (ROE) for the trailing twelve months was 152.7%. Return on assets (ROA) reached 28.4%. The company's asset turnover ratio was 0.98.

Research and development expenses were $7.8 billion for the quarter, representing 8.7% of revenue, compared to $7.2 billion or 9.0% of revenue in Q4 2023.

Year-to-Date Performance

For fiscal year 2024, total revenue was $383.3 billion, up 8% compared to FY 2023. Full-year net income reached $100.9 billion, representing a 10% YoY increase. Annual EPS was $6.13, up from $5.56 in FY 2023.

Operating cash flow for the full year totaled $118.3 billion, while free cash flow reached $110.5 billion. The company returned $108.2 billion to shareholders during fiscal 2024.

Guidance and Outlook

For Q1 fiscal 2025, the company expects revenue growth in the low double digits year-over-year. Gross margin is expected to be between 46% and 47%. Operating expenses are anticipated to be between $14.5 billion and $14.8 billion.

CEO Commentary

"We are pleased with our strong Q4 results, which reflect the power of our innovation and the strength of our ecosystem," said Tim Cook, Apple's CEO. "Our Services business reached a new all-time high, and we continue to see excellent momentum in our products across all geographic segments."

CFO Commentary

"Our financial performance in Q4 was outstanding, with double-digit revenue and EPS growth," said Luca Maestri, Apple's CFO. "We generated robust operating cash flow of $28.5 billion and continued to return capital to shareholders while investing in our future."

Market Position

Apple maintains its position as the world's most valuable company by market capitalization, valued at approximately $2.8 trillion as of the end of Q4 2024. The company's stock price has appreciated 32% year-to-date.

Forward-Looking Statements

This release contains forward-looking statements regarding future financial performance and business prospects. Actual results may differ materially from projections due to various risks and uncertainties.
