Apple (AAPL) Q3 2024 earnings summary

Executive summary

• Achieved record June quarter revenue of $85.8 billion, up 5% year-over-year, with EPS up 11% to $1.40, both setting June quarter records.

• Services revenue reached an all-time high of $24.2 billion, up 14% year-over-year, with paid subscriptions exceeding 1 billion and installed base of active devices at new records.

• Launched Apple Intelligence, integrating advanced AI and privacy features across devices, and announced major OS updates and Apple Vision Pro expansion.

• Strong customer satisfaction and loyalty drove the installed base of active devices to all-time highs across all product categories and regions.

Financial highlights

• Total revenue: $85.8 billion, up 5% year-over-year, with gross margin of $39.7 billion (46.3%), and net income of $21.4 billion.

• Diluted EPS: $1.40, up 11% year-over-year; operating income: $25.4 billion, up 10% year-over-year.

• Services revenue: $24.2 billion, up from $21.2 billion year-over-year.

• Operating cash flow: $28.9 billion, a June quarter record.

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: 45.5%-46.5%; OpEx expected between $14.2-$14.4 billion.

• FX expected to be a 1.5 percentage point headwind year-over-year; management expects continued volatility in gross margins due to product mix, currency, and cost factors.