Apple 2025 Q3 Earnings Beats Expectations as Net Income Surges 9.3%

Apple (AAPL), ranking 3rd by market capitalization, reported its fiscal 2025 Q3 earnings on Jul 31st, 2025. The tech giant exceeded analyst expectations with a reported revenue of $94 billion, surpassing the $89.04 billion forecast. Earnings per share also beat estimates, reaching $1.57 compared to the anticipated $1.42. Apple maintained its guidance, predicting mid- to high single-digit revenue growth for the next quarter. The company continues to show strong performance across various markets, with notable growth in iPhone, Mac, and Services segments.

Revenue

Apple's total revenue for the 2025 Q3 increased by 9.6%, reaching $94.04 billion compared to $85.78 billion in 2024 Q3. The company saw robust growth across its segments, with iPhone revenue leading the charge at $44.58 billion, followed by Mac sales at $8.05 billion. The iPad segment contributed $6.58 billion, while the Wearables, Home, and Accessories division generated $7.4 billion. Apple's Services segment bolstered the overall revenue with $27.42 billion, reflecting increased demand and customer satisfaction.

Earnings/Net Income

Apple's EPS rose 12.1% to $1.57 in 2025 Q3 from $1.40 in 2024 Q3, indicating continued earnings growth. Net income reached $23.43 billion in 2025 Q3, a 9.3% increase from $21.45 billion in 2024 Q3. Remarkably, this quarter marked a new record high for fiscal Q3 net income, the highest in over 20 years. The earnings per share performance reflects Apple's strong and improving financial health.

Price Action

The stock price of Apple has edged down 0.44% during the latest trading day, has edged down 2.90% during the most recent full trading week, and has edged up 1.17% month-to-date.

Post-Earnings Price Action Review

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CEO Commentary

Timothy D. Cook, CEO, emphasized that Apple achieved a June quarter revenue record of $94 billion, marking a 10% year-over-year increase. He noted strong performance across most markets, particularly in Greater China and emerging economies, driven by double-digit growth in iPhone, Mac, and Services. Cook highlighted the iPhone 16 family’s popularity, which contributed to a record number of upgraders. He expressed optimism about Apple's investments in AI, describing it as a transformative technology that will be integrated across devices, ensuring a deeply personal and private user experience. Cook concluded with a positive outlook on Apple's innovation and market position.

Guidance

For the September quarter, Apple expects total revenue growth in the mid- to high single digits year-over-year, with Services revenue growth anticipated to be similar to the June quarter's 13% increase. The company projects a gross margin between 46% and 47%, factoring in an estimated $1.1 billion in tariff-related costs. Operating expenses are anticipated to range from $15.6 billion to $15.8 billion, with an operating income and expense estimate of around negative $25 million. The tax rate is expected to be approximately 17%.

Additional News

Apple is amplifying its focus on mergers and acquisitions to accelerate its roadmap, having acquired seven companies this year. CEO Tim Cook highlighted the company’s openness to M&A, noting that none of the acquisitions were large in dollar terms. Additionally, Apple declared a quarterly cash dividend of 26 cents per share, payable on August 14 to shareholders of record as of August 11. In response to evolving market dynamics, Apple is reallocating resources towards AI, significantly boosting its capital expenditures. The company plans to leverage both internal and third-party investments to enhance its AI capabilities, aiming to integrate transformative technology across its devices and platforms.