Financial statement analysis

“Has Apple become more dependent on Services over the last five years? Is growth coming from Services or hardware? Give me each year’s numbers and sources.”

Services grew from 19.6% to 26.2% of net sales — and 42.2% of gross margin.

Recorded September 30, 2026 · 7 steps · 3 SEC filings · real CLI output

Recorded agent sessionSeptember 30, 2026 · real CLI output

The answer

What the agent concluded

Yes. Services rose from 19.6% of net sales in FY2020 to 26.2% in FY2025. Its share of gross margin rose faster, from 33.8% to 42.2%, because Services gross margin was 75.4% in FY2025.

Where the growth came from depends on the window. Since FY2022, Products net sales changed by −$9.2B while Services added $31.0B, so Services accounts for all of the net growth. Over the full five years, Products still added more dollars ($86.3B vs $55.4B), most of it in the FY2021 rebound.

Services compounded at 15.2% a year from FY2020 to FY2025, against 6.8% for Products.

Services share of net sales, FY202526.2%+6.6 pts since FY2020
Services share of gross margin, FY202542.2%+8.3 pts since FY2020
Net growth from Services since FY2022$31.0BProducts −$9.2B

Evidence

The numbers and where they came from

Apple net sales by category. Fiscal years end on the last Saturday of September. Values reported in millions of US dollars.
Fiscal yearServicesNet salesServices shareShare of gross marginSource
FY2020$53.8B$274.5B19.6%33.8%10-K · 0000320193-22-000108
FY2021$68.4B$365.8B18.7%31.2%10-K · 0000320193-22-000108
FY2022$78.1B$394.3B19.8%32.8%10-K · 0000320193-22-000108
FY2023$85.2B$383.3B22.2%35.7%10-K · 0000320193-25-000079
FY2024$96.2B$391.0B24.6%39.3%10-K · 0000320193-25-000079
FY2025$109.2B$416.2B26.2%42.2%10-K · 0000320193-25-000079

Apple net sales by category. Fiscal years end on the last Saturday of September. Values reported in millions of US dollars.

Calculations

Inputs and method, not just results

Services share of net sales
Services net sales / Net salesFY2025: 109,158,000,000 / 416,161,000,000= 26.23%
Services share of gross margin
(Services sales − Services cost of sales) / total gross marginFY2025: 82,314,000,000 / 195,201,000,000= 42.17%
Services CAGR FY2020–FY2025
(end / start) ** (1 / periods) − 153,768,000,000 → 109,158,000,000, 5 periods= 15.21%

Checks & caveats

What was verified, and what limits the answer

  • Verified
    No restatement in overlapping years

    FY2021 and FY2022 Products and Services figures in the FY2023 10-K match the FY2022 10-K exactly.

  • Verified
    Products + Services = Net sales

    The two categories sum to reported net sales in all six years.

  • Caveat
    Services includes bundled amortization

    Services net sales include amortization of the deferred value of services bundled in the sales price of certain products.

  • Caveat
    Drivers are named, not sized

    Services net sales increased during 2025 compared to 2024 primarily due to higher net sales from advertising, the App Store and cloud services. The filing gives no amount for each driver.

Agent trace

Every tool call, in order

  1. filings.recentList annual reports so every fiscal year maps to one specific filing.
    finance filings.recent AAPL forms=10-K limit=6 --output json

    6 annual reports, FY2020–FY2025, each with an accession number.

    Raw CLI output ↗
  2. filings.statementRead Products and Services net sales and cost of sales for FY2023–FY2025.
    finance filings.statement accession=0000320193-25-000079 statement=income --output json

    Products and Services rows for FY2023–FY2025 with XBRL concepts.

    Raw CLI output ↗
  3. filings.statementRead the same rows for FY2020–FY2022 from the earlier 10-K.
    finance filings.statement accession=0000320193-22-000108 statement=income --output json

    The same rows for FY2020–FY2022.

    Raw CLI output ↗
  4. filings.statementCross-check overlapping years: did a later filing restate FY2022 or FY2021?
    finance filings.statement accession=0000320193-23-000106 statement=income --output json

    FY2021 and FY2022 values match the earlier filing. No restatement.

    Raw CLI output ↗
  5. filings.reportConfirm units ($ in millions) and the product-category breakdown in the revenue note.
    finance filings.report accession=0000320193-25-000079 name="Revenue - Disaggregated Net Sales and Portion of Net Sales That Was Previously Deferred (Details)" --output json

    Revenue note is in $ millions. Services is reported as one line.

    Raw CLI output ↗
  6. filings.readFind management's explanation of what drove Services growth.
    finance filings.read accession=0000320193-25-000079 section=mda max_chars=60000 --output json

    Management names advertising, the App Store and cloud services as drivers.

    Raw CLI output ↗
  7. formula.marginCompute shares and growth with stated inputs and method.
    finance formula.margin numerator=109158 denominator=416161

    18 ratios and 2 CAGRs, each with inputs. FY2025 Services share = 26.23%.