Apple Reports Highest Revenue Growth in Over Three Years, Exceeding Wall Street Expectations with iPhone 16 Sales and Strong Performance in China.

Apple reported a 9.6% increase in Q3 sales to $94bln, exceeding Wall Street expectations, driven by strong iPhone and China sales. The company also forecast a mid-to-high single-digit percentage increase in Q4 sales. CEO Tim Cook attributed the growth to accelerating sales in many markets, including Greater China and several emerging economies. The Apple stock rose around 2% after the announcement.

Apple Inc. (AAPL) reported its third-quarter earnings for the fiscal year 2025, delivering a robust performance that exceeded Wall Street expectations. The company's revenue grew by 9.6% year-over-year (YoY) to $94.04 billion, surpassing the Zacks Consensus Estimate of $88.92 billion [1]. Earnings per share (EPS) increased to $1.57, representing a 10.56% surprise compared to the expected $1.42 per share [1].

Key highlights from the earnings report include:

- Greater China Revenue: Apple's revenue from Greater China, which includes China, Hong Kong, and Taiwan, grew by 4.4% YoY to $15.37 billion. This represents a reversal from the previous two quarters, where sales declined [1].
- Europe Revenue: Revenue from Europe increased by 9.7% YoY to $24.01 billion, reflecting strong demand for Apple's products in the region.
- Japan Revenue: Japan revenue grew by 13.4% YoY to $5.78 billion, indicating continued growth in the Japanese market.
- Net Sales for Products: Net sales for Apple's products, which include iPhones, iPads, Macs, and other hardware, increased by 8.2% YoY to $66.61 billion.
- Services Revenue: Services revenue, which includes Apple Music, App Store, iCloud, and other subscription services, grew by 13.3% YoY to $27.42 billion.

The company's CEO, Tim Cook, attributed a significant portion of the revenue growth to customers buying products to get ahead of potential tariffs. He also highlighted the popularity of the iPhone 16, which saw strong double-digit sales growth compared to the iPhone 15 [1].

While the earnings report was positive, Apple's iPad sales and wearables revenue declined by 8% and 8.64% respectively, indicating areas for potential improvement. However, the company's services business continued to grow, underscoring its importance to Apple's overall revenue.

Apple's stock has lost about 16.5% since the beginning of the year compared to the S&P 500's gain of 8.2% [2]. The sustainability of Apple's stock price will depend on future earnings expectations and the company's ability to maintain its revenue growth trajectory.

The company forecast a mid-to-high single-digit percentage increase in Q4 sales, driven by accelerating sales in many markets, including Greater China and several emerging economies [3].

References:
[1] https://www.ainvest.com/news/apple-q3-earnings-revenue-9-6-eps-surpasses-expectations-2508/
[2] https://www.nasdaq.com/articles/apple-aapl-q3-earnings-and-revenues-top-estimates
[3] https://watcher.guru/news/apple-stock-jumps-after-94b-q3-earnings-iphone-sales-surge