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Apple (AAPL) Q1 2022 earnings results beat EPS and revenue expectations

The largest company in the known universe just put up another massive quarter. Check out all the details from Apple's Q1 2022 earnings results.

Asif Khan

January 27, 2022 1:40 PM

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Apple Inc. just reported their Q1 2022 earnings results, beating EPS and revenue expectations. EPS came in at $2.10/share on a staggering $123.9 billion of revenue. Apple points out that their sales were up 11% from the prior year.

Tim Apple and his CFO had this to say about the AAPL Q1 2022 earnings results:

“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” said Tim Cook, Apple’s CEO. “We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030, and pushing forward with our work in education and racial equity and justice.”

“The very strong customer response to our recent launch of new products and services drove double-digit growth in revenue and earnings, and helped set an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “These record operating results allowed us to return nearly $27 billion to our shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.”

Some more interesting tidbits from Apple's earnings release are that iPhone, Mac, Wearables, and Services revenue segment all hit all-time highs during the quarter. The one segment left out of the party? iPad. In an interview with CNBC, Cook discussed the issues the company faces with supply chain shortages and inflation. “I think everybody’s seeing inflationary pressure,” Cook said. “There’s no two ways about that.” 

Despite inflationary headwinds and supply chain challenges, Apple just reported their best revenue results in the company's history. Cook mentioned that the main supply chain issues they face are on legacy nodes, as opposed to their top-of-the-line chips like the A and M series ARM processors. 

A bright spot to note in the results is the growth of the Services revenue segment. The division's $19.52 billion in revenue was up 25% from the prior year, and is now larger than the Mac and iPad divisions combined. That's a lot of Ted Lasso episodes... Is that what the kids are watching?

Here's a breakdown of all of the company's key metrics from the report:

• EPS - $2.10/share (up 25% year-over-year)
• Revenue - $123.9 billion (up 11% year-over-year)
• iPhone revenue - $71.63 billion (up 9% YoY)
• Services revenue - $19.52 billion (up 25% YoY)
• Other Products revenue - $14.70 billion (up 13% YoY)
• Mac revenue - $10.85 billion (up 25% YoY)
• iPad revenue - $7.25 billion (down 14% YoY)
• Gross margin - 43.8% (higher than the estimate of 41.7%)

These results are impressive, but one has to wonder just how sustainable margins of 43.8% will be if Cook's statement on inflation rings true. Either way, the stock is up nearly 4% in after-hours trading, and the conference call is getting started now.

Asif Khan

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.