Apple posts quarterly revenue of $95.4 billion

Apple has released its earnings report for fiscal Q2 2025, reporting $95.4 billion in revenue during the three-month period.

That compares to $90.75 billion during the same quarter a year ago. Wall Street expected $94.68 billion in revenue. Profit from revenue includes $24.78 billion.

“Today Apple is reporting strong quarterly results, including double-digit growth in Services,” said Tim Cook, Apple’s CEO.

“We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we’ve cut our carbon emissions by 60 percent over the past decade.”

The company reported $1.65 per share on $24.78 billion of net income during the quarter, versus $23.64 billion, or $1.53 per share, in the year-ago period.

iPhones topped estimates at $46.8 billion in sales during the quarter. The overall product line’s sales were up just under 2% on an annual basis.

Apple’s profitable Services division includes iCloud subscriptions, services like Apple Music and Apple TV+, warranties and revenue from search licensing deals like its agreement with Google.

Cook hailed Services growth to $26.65 billion in revenue during the quarter, an annual increase of 11.65%. However, Services revenue came in slightly under StreetAccount expectations, and last year, Apple’s services division grew 14.2% during the March quarter.

Apple hardware generally did well during the quarter.

Mac sales rose nearly 7% to just under $8 billion, and iPad sales were up 15% on an annual basis to $6.4 billion. Apple introduced new mid-priced iPad Air and MacBook Air models in March.

However, Apple’s wearables division, which includes Apple Watch, AirPods and accessories sales, declined 5% versus the same period last year to $7.52 billion in revenue. Cook attributed the decline, in part, to the launch of the Vision Pro headset in the year ago quarter.

Sales in Greater China, which includes Taiwan and Hong Kong, were down slightly year-over-year at $16 billion. Cook said that China sales were accelerating on a quarterly basis, and that Apple sales in the region would have been flat if not for foreign exchange rates.

On the other hand, sales in the Americas, Apple’s largest market that has seen some increased consumer demand ahead of tariffs, rose nearly 8%.

Cook provided Apple’s first comments on the impact of tariffs on its business on an earnings call with analysts, saying the company saw “limited impact” in the March quarter because it was able to optimize its supply chain.

Apple expects overall revenue to grow “low to mid-single digits” on an annual basis during the current quarter, ending in June, finance chief Kevan Parekh said on the call.

The company also expects gross margin to come in at 46% at the midpoint, taking into account tariff costs. Analysts were looking for third-quarter guidance of $1.48 in earnings per share on $89.45 billion of sales.

Apple expects tariffs to add $900 million to its costs for the current quarter, assuming no new tariffs or other major changes occur, Cook said on the call.

However, he added that it is “very difficult” to predict beyond June “because I’m not sure what will happen with tariffs.”

Cook said that Apple is already sourcing about half of the iPhones for the U.S. from India, and most of its other products for the U.S. from Vietnam, where tariffs are lower than they are from China.

Apple still makes the “vast majority” of its products for other countries in China, Cook said.

The iPhone uses a lot of chips made domestically, said Cook, adding that Apple is buying 19 billion chips this year from the U.S.

Apple’s board of directors has declared a cash dividend of $0.26 per share of the Company’s common stock, an increase of 4 percent. The dividend is payable on May 15, 2025 to shareholders of record as of the close of business on May 12, 2025.

The board of directors has also authorized an additional program to repurchase up to $100 billion of the Company’s common stock.