App Store Revenue Surges 12.6% Year-Over-Year Despite Epic Games Lawsuit

Apple's App Store revenue experienced a notable acceleration in July, with the U.S. market leading the way in strong performance. This growth trend has not yet been impacted by the Epic Games lawsuit against Apple, according to a recent report by Morgan Stanley. The report, led by analyst Eric Woodring, highlighted that if July 20 is considered the end of the third fiscal quarter, the App Store's net revenue would increase by 12.6% year-over-year, surpassing the previous estimate of 11.0% by 210 basis points. This would provide an additional 60 basis points, or approximately $1.6 billion, to the projected 11.7% growth rate for the September quarter's services business, which is higher than the market consensus of 10.8%.

Despite the Epic Games lawsuit against Apple, which has been decided, the App Store's revenue continues to grow. Woodring stated that since the injunction between Apple and Epic was issued more than two months ago, there has been no significant impact on Apple's monetization capabilities in the U.S. App Store, despite the risk of external payment links. This suggests that the legal decision has not yet had a negative impact on Apple's revenue from its App Store.

Apple is scheduled to release its third-quarter financial report for the 2025 fiscal year on July 31. Market expectations are that the company will report revenue of $88.9 billion and earnings per share of $1.43. This upcoming report will provide further insights into the company's financial performance and the impact of the Epic Games lawsuit on its revenue streams. Investors and analysts will be closely monitoring these results to gauge the long-term effects of the legal decision on Apple's business.