Apple Inc. stock research
FY2025 Q3
Apple (AAPL) Gross Margin — Quarter Ended Jun 28, 2025
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin weakened slightly compared to the prior quarter but improved relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q3
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin weakened slightly compared to the prior quarter but improved relative to the same quarter one year earlier.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue declined less than revenue from the prior quarter, putting pressure on gross margin.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.5%
Gross profit
$43.7B
Revenue
$94.0B
Cost of revenue
$50.3B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 28, 2024 | $94.9B | $43.9B | $51.1B | 46.2% |
| Dec 28, 2024 | $124.3B | $58.3B | $66.0B | 46.9% |
| Mar 29, 2025 | $95.4B | $44.9B | $50.5B | 47.1% |
| Jun 28, 2025 | $94.0B | $43.7B | $50.3B | 46.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
-0.6 pts
Year-over-year change
Jun 29, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue declined less than revenue from the prior quarter, putting pressure on gross margin.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue in future quarters, as a slower decline in costs compared to revenue may continue to pressure gross margin.