Apple (AAPL) earnings report Q4 2025
Apple It reported fiscal fourth-quarter earnings on Thursday that beat analyst expectations and provided a strong forecast for the company’s December quarter.
Shares of the iPhone manufacturer remained horizontal in long-lasting transactions.
Here’s how the iPhone maker performed against LSEG consensus estimates for the quarter ending September 27:
- EPS: $1.77 vs. $1.85 estimated
- Revenues: $102.47 billion versus $102.24 billion estimated
Here’s how Apple’s main business lines are performing relative to consensus estimates:
- iPhone revenue: $49.03 billion versus $50.19 billion estimated
- Mac revenue: $8.73 billion vs. $8.59 billion estimated
- iPad revenue: $6.95 billion vs. $6.98 billion estimated
- Other Products revenue: $9.01 billion versus $8.49 billion estimated
- service revenue: $28.17 billion versus $28.75 billion estimated
Apple CEO Tim Cook told CNBC’s Steve Kovach that total company revenue for this quarter ending in December will increase 10% to 12% over last year.
“We expect total company revenue to grow 10 to 12% year over year, we expect iPhone revenue to grow in double digits year over year, and we expect the December quarter to be the best quarter in the company’s history,” Cook said.
Analysts surveyed by LSEG expect Apple to post sales of $132.31 billion and earnings per share of $2.53 in the December quarter. Apple’s guidance exceeds these expectations. Revenue will be $137.97 billion, an 11% increase from last year’s December quarter.
Cook said he relied on Apple’s guidance because of the strong response to the company’s new iPhone 17 devices, which launched in September, and that it was “off the charts.”
“We’re looking at the results to date, the consumer response to the very strong iPhone lineup. We’re looking at traffic in our stores, which is growing significantly year on year. We’re seeing enthusiasm around the world,” Cook said.
The company’s net income was $27.46 billion for the quarter, compared to $14.29 billion in the same period a year ago; this was lower due to a one-time tax cut.
Apple’s total revenue in fiscal 2025 reached $416 billion, an increase of 6% compared to 2024. Sales increased 8% year-on-year in the September quarter.
Overall iPhone revenue increased 6% to $49.03 billion; This is the first sign of how far iPhone 17 sales are coming. Apple’s newest phones went on sale on September 19, meaning there’s just over a week of sales this quarter.
However, LSEG analysts were looking for a figure of $50.19 billion in iPhone sales at the time.
Cook said supplies of many iPhone models were restricted during the quarter, for both the iPhone 17 and last year’s iPhone 16 models.
“Actually, there is limited supply of some models in Q4, ’16 and ’17,” Cook said. “And we are currently experiencing supply constraints on several models of the iPhone 17.”
Apple’s iPad business was also steady with sales of $6.95 billion during the quarter. Apple didn’t launch a new model this quarter, but it did introduce an upgraded iPad Pro with an updated M5 chip in October.
Sales of the company’s services businesses, which include online subscriptions like iCloud and Apple Music as well as App Store fees, Google search licenses, payment fees and AppleCare warranties for hardware, rose 15% to $24.97 billion. The unit is Apple’s fastest-growing unit and is important to investors because it represents recurring revenue with higher profit margins than hardware.
Many of the components in the Services business are seeing incremental growth, Cook said.
“This was a routine incident,” Cook said.
Other Products, a category that includes Apple Watch, AirPods, and Vision Pro, was down very slightly, with sales of $9.04 billion in the quarter.
Apple’s Mac business grew at a strong 13% to $8.72 billion. Cook attributed the growth to strong sales of the company’s MacBook Air laptop; those sales renewed in March, dropping the starting price to $999 with a $100 price cut.
The company’s sales in Greater China, which includes Hong Kong and Taiwan, fell 4% year-on-year to $14.5 billion. Cook said he expects China to return to growth in the December quarter.
“We expect China to return to growth this quarter due to the acceptance of the iPhone or the iPhone 17 family,” Cook said.
Cook said the company still plans to release an updated version of Siri next year, and that more partnerships are coming soon, such as the company’s agreement to integrate ChatGPT into Apple Intelligence.
“Our goal is to integrate with more people over time,” Cook said.
Cook said Apple did not change its prices in response to the Trump administration’s tariffs.
“We’ve kept the pricing we would have without any tariffs, and we’re just covering the tariffs as gross margin,” Cook said. Apple’s gross margin was 47.2%, better than LSEG’s expectation of 46.4%.
