Apple Sets Revenue Growth Target for Q4 2025, Driven by AI Investment and Record Performance in Key Segments.

Apple reported Q3 2025 revenue of $94 billion, a 10% YoY increase, and EPS of $1.57, up 12% YoY. CEO Timothy D. Cook attributed the growth to record iPhone, Mac, and Services performance, as well as investment in AI. The company expects mid- to high single-digit revenue growth for Q4 2025.

Apple Inc. (AAPL) reported a robust third-quarter (Q3) 2025 performance, with revenue of $94 billion, a 10% year-over-year (YoY) increase, and earnings per share (EPS) of $1.57, up 12% YoY. CEO Timothy D. Cook attributed the growth to record performance in iPhone, Mac, and Services segments, as well as increased investment in artificial intelligence (AI).

The iPhone segment contributed $44.6 billion, up 13.2% YoY, surpassing expectations of $40.1 billion [1]. China, a critical market for Apple, saw revenue grow by 4.4% to $15.4 billion, marking the first growth in two years [2]. This rebound was attributed to increased consumer spending in anticipation of potential tariff-driven price increases.

Apple's Services business also shone, with sales rising by 13% to $27.4 billion, slightly ahead of analysts' forecasts [1]. The company expects tariff costs to rise to $1.1 billion in the next quarter, up from $800 million in the current period [1].

The Mac business grew the fastest of any of Apple's units during the June quarter, growing nearly 15% to $8.05 billion in revenue. The company's services business, which includes Apple's warranties, content subscriptions, licensing deals with Google and iCloud, continued to grow to $27.42 billion in the period, a 13% increase [2].

Despite these positive indicators, Apple's stock remains volatile, reflecting broader market concerns about the impact of tariffs on global markets. The company's shares rose about 2% in late trading following the announcement, but they had been down 17% year-to-date, trailing behind AI-driven tech peers [1].

CEO Tim Cook attributed the company's strong performance to a "vast majority of markets" experiencing growth, including Greater China and emerging markets. He also noted that while the iPhone remains central to Apple's strategy, the company is exploring complementary devices like smart glasses and new AirPods models to diversify its product offerings [1].

Cook revealed that Apple has already acquired seven companies in 2025, though not all are AI-focused. He stopped short of confirming any specific future deals. Meanwhile, Apple CFO Kevan Parekh acknowledged that the company’s spending will increase, largely due to AI investments [3].

Apple expects mid- to high-single-digit revenue growth for Q4 2025. The company's renewed focus on AI comes amid pressure to keep pace with industry leaders like Microsoft and Google, both of which have made significant headway in AI through tools such as Copilot and Gemini [3].

In conclusion, while Apple's Q3 results demonstrate resilience in the face of tariffs and a strong performance in key markets, investors remain cautious. The company's stock volatility highlights the broader market uncertainty, and the long-term impact of tariffs on Apple's operations remains a concern. As Apple continues to navigate these challenges, investors will be closely watching its ability to adapt and innovate in the face of increasing competition and regulatory pressures.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-31/apple-revenue-tops-estimates-on-strength-of-iphone-china-market
[2] https://gulfnews.com/technology/apples-iphone-boom-china-rebound-defy-expectations-as-sales-surge-1.500218796
[3] https://www.businesstoday.in/technology/news/story/is-apple-finally-ready-to-buy-big-in-the-ai-race-tim-cook-is-ready-to-pay-487390-2025-08-01