Apple Reports Q3 2025 Earnings: $94.04 Billion in Revenue, Up 10%

Apple reported Q3 2025 earnings with $94.04 billion in revenue, up 10% YoY, and $23.42 billion in profit. The company's iPhone revenue reached $44.58 billion, while Mac revenue was $8.05 billion. Services revenue hit $27.42 billion, and the installed base of active devices reached a new all-time high across all product categories and geographic segments.

Apple Inc. (AAPL) reported its fiscal third quarter (Q3) 2025 earnings, showcasing a robust performance with revenue up 10% year-over-year (YoY) and significant profit growth. The company's iPhone revenue reached $44.58 billion, while Mac revenue was $8.05 billion. Services revenue hit $27.42 billion, and the installed base of active devices reached a new all-time high across all product categories and geographic segments [1].

Financial Highlights:

- Revenue: Apple reported $94.04 billion in revenue for Q3 2025, up 10% YoY.
- Profit: The company's profit surged to $23.42 billion, a significant increase from the previous quarter.
- iPhone Revenue: The iPhone segment contributed $44.58 billion to the total revenue, marking a strong performance.
- Mac Revenue: Mac revenue was $8.05 billion, indicating steady growth in the segment.
- Services Revenue: Services revenue reached $27.42 billion, highlighting the continued growth of Apple's ecosystem.
- Active Devices: The installed base of active devices across all product categories and geographic segments hit an all-time high.

Key Factors:

1. iPhone Demand: The strong performance of the iPhone segment underscores the continued demand for Apple's premium smartphones. The company has been focusing on enhancing its AI capabilities to stay competitive in the market [2].
2. AI Strategy: Apple's AI strategy remains a critical focus area for investors. The company is expected to provide updates on its AI progress and any potential deals, such as the rumored acquisition of Perplexity AI, during the earnings call [3].
3. Tariffs and Supply Chain: Apple's efforts to navigate tariff-related costs and shift production to India have been successful in mitigating some of the trade war's impacts. The company's investment in MP Materials, a US producer of rare earth magnets, is part of its broader initiative to spend $500 billion in the US over the next four years [4].
4. Services Growth: The significant growth in services revenue highlights Apple's ability to leverage its ecosystem to generate recurring revenue streams. This includes subscription services like Apple Music, Apple TV+, and the App Store [5].

Market Reaction:

Investors will be closely watching Apple's earnings call for updates on its AI strategy and any potential price increases for its iPhones. Analysts expect Apple to hike the price of some iPhone 17 models by $50 to help cover tariff costs [6]. Additionally, the company's performance in China, where it faces fierce competition, will be a key focus [7].

Conclusion:

Apple's Q3 2025 earnings report demonstrates the company's ability to navigate market challenges and drive growth across its product segments. The strong performance of the iPhone segment, coupled with robust growth in services and active devices, positions Apple well for future success. Investors will be eager to hear more about the company's AI strategy and any potential price increases during the earnings call.

References:

[1] https://www.businessinsider.com/apple-q3-earnings-aapl-stock-price-iphone-demand-ai-tariffs-2025-7
[2] https://www.businessinsider.com/apple-q3-earnings-aapl-stock-price-iphone-demand-ai-tariffs-2025-7
[3] https://www.businessinsider.com/apple-q3-earnings-aapl-stock-price-iphone-demand-ai-tariffs-2025-7
[4] https://www.businessinsider.com/apple-q3-earnings-aapl-stock-price-iphone-demand-ai-tariffs-2025-7
[5] https://www.businessinsider.com/apple-q3-earnings-aapl-stock-price-iphone-demand-ai-tariffs-2025-7
[6] https://www.businessinsider.com/apple-q3-earnings-aapl-stock-price-iphone-demand-ai-tariffs-2025-7
[7] https://www.businessinsider.com/apple-q3-earnings-aapl-stock-price-iphone-demand-ai-tariffs-2025-7