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Apple AAPL Services — Cost of Sales

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Other financials

Income statement

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Revenue$109.42B+16.4%
Gross profit$54.8B+25.3%
Operating income$35.7B+26.6%
Net income$29.8B+27.1%
EPS (diluted)$2.02+28.7%

Balance sheet

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Cash & equivalents$39.5B+9.0%
Total debt$82.3B-10.3%
Total equity$107.52B+63.3%
Total assets$383.27B+15.6%

Cash flow

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Operating cash flow$34.4B+23.3%
CapEx$2.5B-29.1%
Free cash flow$31.9B+30.8%

Valuation

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Market cap$4.54T+50.3%
Enterprise value$4.58T+49.0%
P/E35.2×+4.8×
P/S9.7×+2.3×

Profitability

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Gross margin48.7%+2.0pp
Operating margin33.2%+1.3pp
Net margin27.6%+3.3pp
FCF margin29.3%+5.7pp

Returns & leverage

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Return on equity148.8%-1.1pp
Debt / equity0.8×-0.6×
Current ratio+0.1×

Where this comes from

Reported directly by Apple in its filing.

Tagged under the XBRL concept us-gaap:CostOfGoodsAndServicesSold.

The source filing: Apple’s 10-Q, filed May 1, 2026.

Filed
May 1, 2026, 6:01 AM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q1 2026
Accession
0000320193-26-000013
Line itemThree Months Ended / March 28,2026Three Months Ended / March 29,2025Six Months Ended / March 28,2026Six Months Ended / March 29,2025
Total net sales111,18495,359254,940219,659
Cost of sales:
Products49,17944,030116,657103,477
Services7,2246,46214,27113,040
Total cost of sales56,40350,492130,928116,517
Gross margin54,78144,867124,012103,142
Operating expenses:
Research and development11,4198,55022,30616,818

Item 1. Financial Statements

FAQ

What is Apple's services — cost of sales?
Apple (AAPL) reported services — cost of sales of $7.22B in Q1 2026.
How has Apple's services — cost of sales changed year-over-year?
Apple's services — cost of sales increased by 11.8% year-over-year, from $6.46B to $7.22B.
What is the long-term trend for Apple's services — cost of sales?
Over 4 years (2021 to 2025), Apple's services — cost of sales has grown at a 6.7% compound annual growth rate (CAGR), from $20.72B to $26.84B.
What does services — cost of sales mean?
The direct expenses associated with delivering digital services, including data center operations, content acquisition costs, and transaction processing fees. This figure reflects the variable costs required to maintain the software infrastructure and fulfill third-party licensing agreements.

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