Health Check
Apple holds over $162 billion in cash and marketable securities against $111 billion in total debt. Free cash flow exceeded $110 billion over the last twelve months, comfortably covering all debt obligations and shareholder returns.
Revenue grew 6.1% year-over-year to $391 billion, driven by Services revenue hitting record highs. iPhone revenue remained stable while Mac and iPad saw double-digit growth in the latest quarter.
At a P/E ratio of around 33, you are paying $33 for every $1 Apple earns. The average large company trades at about 22x earnings. Apple commands a premium because of its ecosystem and cash generation, but it is not cheap by historical standards.
Apple shares are trading above both their 50-day and 200-day moving averages, indicating a sustained uptrend. The stock has gained approximately 7% over the past three months, outperforming the broader market.
Recent analyst sentiment is strongly positive. Three major firms raised price targets following the Q1 earnings beat. The Vision Pro 2 announcement and continued AI integration across the product line have generated positive coverage.
News
Apple Reports Record Q1 Revenue of $124.3 Billion
Apple posted its best quarter ever, beating analyst expectations across every product category. Services revenue hit $26.3 billion, up 16% year-over-year, while iPhone revenue grew 4% despite a mature smartphone market. CEO Tim Cook credited strong demand for the iPhone 17 Pro and continued growth in emerging markets.
Apple Unveils Vision Pro 2 With Lighter Design and Lower Price
Apple announced the second generation of its mixed-reality headset at a special event, featuring a 40% lighter design and a starting price of $2,499 — down from the original $3,499. The company also announced partnerships with Netflix and Epic Games for native spatial computing apps.
Goldman Sachs Raises Apple Price Target to $280
Goldman Sachs analyst Michael Ng raised his price target from $250 to $280, citing accelerating Services growth and the upcoming AI features rollout across the iPhone lineup. The analyst noted Apple Intelligence adoption is tracking ahead of internal expectations.
Financials
Apple generated $391 billion in total revenue over the last twelve months. That is more than the GDP of many countries. Services — things like the App Store, iCloud, and Apple Music — now make up over a quarter of total revenue and are growing fastest.
Apple earned $7.15 per share over the past year, up nearly 10% from last year. This means if you own one share of Apple, the company earned $7.15 on your behalf. Strong EPS growth signals the business is becoming more profitable, not just bigger.
Apple generated $118 billion in cash from operations — this is the actual cash flowing into the business from selling products and services. It is one of the highest cash flow figures of any company in the world, giving Apple enormous financial flexibility.
For every dollar of revenue, Apple keeps 46.9 cents after paying for the cost of making its products. This margin has been expanding thanks to the shift toward higher-margin Services revenue. Hardware margins are tighter, but the mix is improving.