AAPL
Apple Inc.
Technology · Consumer Electronics · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Apple's perfect profitability score reflects FY2025 margins and asset returns at the top of the model's achievable thresholds, forming the strongest single contributor to the composite score.
- High dividend and momentum scores reflect consistent per-share dividend growth from FY2022 to FY2025 and an upward quarterly earnings trend, both of which the model rewards heavily for a Dividend Candidate label.
- The mid-range growth score — reflecting solid bottom-line expansion but only 6.4% top-line revenue growth — and the zero theme score together cap the total at 74.5 out of 100.
Why Not Higher
- The theme component contributes zero points because Apple is not currently assigned to any of the 24 tracked macro themes, leaving up to 20 points of potential score unrealized.
- Revenue growth of 6.4% in FY2025, while accompanied by strong earnings expansion, was modest enough to produce only a mid-range growth score, limiting the overall composite.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew 6.4% from FY2024 to FY2025, while net income rose 19.5% over the same period and diluted EPS increased 22.7% from FY2024 to FY2025.
The model rewarded the strong bottom-line expansion — net income up 19.5% and EPS up 22.7% in FY2025 — but the more modest 6.4% top-line revenue growth tempered the overall growth score, resulting in a mid-range result.
In FY2025, Apple posted a net margin of 26.9%, an operating margin of 32.0%, and a return on assets of 31.2%.
These metrics reflect exceptional capital efficiency and pricing power; the model awarded a perfect score in recognition of margins and asset returns that rank among the highest achievable thresholds in its scoring framework.
Filing evidence currently available does not support a more specific explanation for this factor.
Over the last four reported quarters, revenue rose from 94,036,000,000 in 2025Q3 to a peak of 143,756,000,000 in 2026Q1 before moderating to 111,184,000,000 in 2026Q2; net income followed a similar arc from 23,434,000,000 in 2025Q3 to 42,097,000,000 in 2026Q1 and then 29,578,000,000 in 2026Q2; operating income likewise climbed from 28,202,000,000 in 2025Q3 to 50,852,000,000 in 2026Q1 and settled at 35,885,000,000 in 2026Q2.
The pattern shows a pronounced seasonal peak in 2026Q1 followed by a step-down in 2026Q2 that nonetheless remains well above the 2025Q3 and 2025Q4 levels, indicating an overall upward trend across the trailing four quarters that the model rewarded with a high momentum score.
Apple has grown its dividends per share every year from FY2022 (0.9) through FY2025 (1.02), and its FY2025 dividend payout ratio stands at 13.8% of net income.
The consistent per-share dividend growth signals a reliable and rising income stream, while the low 13.8% payout ratio in FY2025 indicates substantial retained earnings headroom, a combination the model rewards highly for dividend quality and sustainability.
Apple is not currently assigned to any of the 24 tracked macro themes in the model.
Because no macro theme assignment is in place, the theme component contributes no points to the overall score under the model's current methodology; this reflects the model's classification state and should not be read as a commentary on the company's business characteristics.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Apple delivered strong bottom-line growth in FY2025, with net income rising 19.5% and diluted EPS climbing 22.7%, even as top-line revenue grew at a more moderate 6.4% to $416.2 billion. Profitability metrics are exceptional, with a net margin of 26.9%, operating margin of 32.0%, and return on assets of 31.2%, reflecting outstanding capital efficiency. Quarterly momentum shows a pronounced seasonal peak in 2026Q1 followed by a step-down in 2026Q2 that still remains well above prior-year levels, indicating a sustained upward trend. Apple's dividend per share has grown every year from FY2022 through FY2025, supported by a very low 13.8% payout ratio that leaves ample room for continued dividend growth.
Plain English
Apple is making significantly more profit per dollar of revenue than most companies, its earnings and dividends keep growing steadily each year, and its quarterly results show a strong upward trend — making it look like a reliable, high-quality business with room to keep rewarding shareholders.
Bull Case vs. Bear Case
Bull Case
- Exceptional profitability: Apple's FY2025 net margin of 26.9%, operating margin of 32.0%, and return on assets of 31.2% rank among the highest achievable thresholds in the model's scoring framework, reflecting deep pricing power and capital efficiency.
- Consistent and sustainable dividend growth: Dividends per share have risen every year from $0.90 in FY2022 to $1.02 in FY2025, and the 13.8% payout ratio signals substantial retained earnings headroom for continued increases.
- Strong earnings momentum: Net income and operating income followed a clear upward arc over the trailing four quarters, with 2026Q2 levels remaining well above 2025Q3 and 2025Q4, indicating durable underlying business strength.
Bear Case
- Modest top-line growth: Revenue grew only 6.4% year-over-year in FY2025, which tempered the overall growth score and may signal limited near-term expansion in Apple's core revenue base.
- No macro theme assignment: Apple is not currently assigned to any of the 24 tracked macro themes in the model, meaning the theme component contributes zero points to the overall score and leaves a meaningful portion of the scoring framework unrealized.
- Seasonal revenue volatility: Quarterly revenue swings from $94.0 billion in 2025Q3 to a peak of $143.8 billion in 2026Q1 before moderating to $111.2 billion in 2026Q2, highlighting significant seasonal concentration risk.
What Could Change the Picture
Bullish Triggers
- A meaningful acceleration in revenue growth beyond the current 6.4% annual rate — for example, driven by new product cycles or services expansion — would strengthen the growth score and support a more bullish composite view.
- Assignment to one or more of the model's 24 tracked macro themes could add up to 20 points to the total score, materially improving the overall ranking.
Bearish Triggers
- A sustained deceleration in net income or EPS growth — reversing the 19.5% and 22.7% gains seen in FY2025 — would undermine the profitability and growth pillars that currently anchor the investment case.
- A significant increase in the dividend payout ratio without corresponding earnings growth could signal stress on the balance sheet and reduce confidence in dividend sustainability.
Risk Profile
Low RiskApple's quarterly financials show a well-established seasonal pattern — revenue peaked at $143.8 billion in 2026Q1 before moderating to $111.2 billion in 2026Q2 — but the 2026Q2 level remains comfortably above prior-year comparable quarters, suggesting the business is on a stable upward trajectory with manageable cyclical swings. The model assigns a Low risk rating consistent with the company's demonstrated earnings consistency and strong asset base of $359.2 billion in total assets.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.