Apple CEO Tim Cook dinner attends the world premiere of “F1” at Occasions Sq. in New York on June 16, 2025.
Angela Weiss | AFP | Getty Photos
Apple reported third-quarter earnings on Thursday that topped Wall Road expectations for revenue and income.
iPhone gross sales grew 13% 12 months over 12 months and total income grew 10% — Apple’s largest quarterly income progress since December 2021.
Apple shares rose in after-hours buying and selling on Thursday and took a leg greater after Apple offered information factors concerning the firm’s efficiency within the September quarter.
Here is how Apple did versus consensus estimates for the quarter ending June 28:
- Earnings per share: $1.57 vs. $1.43 anticipated
- Income: $94.04 billion vs. $89.53 billion anticipated
- iPhone income: $44.58 billion vs. $40.22 billion anticipated
- Mac income: $8.05 billion vs. $7.26 billion anticipated
- iPad income: $6.58 billion vs. $7.24 billion anticipated
- Different Merchandise income: $7.40 billion vs. $7.82 billion anticipated
- Companies income: $27.42 billion vs. $26.80 billion anticipated
- Gross margin: 46.5% vs. 45.9% anticipated
The corporate offered what it calls colour concerning the firm’s efficiency throughout the September quarter up to now on a name with analysts on Thursday. Apple stated it expects mid- to high-single-digit will increase in total income, companies progress to be just like this quarter’s 13% year-over-year progress and for gross margin to be between 46% and 47%, even together with prices associated to tariffs.
Apple incurred $800 million in tariff prices within the June quarter, Apple CEO Tim Cook dinner stated on the decision. That got here in decrease than the $900 million estimate the corporate offered in Might. For the September quarter, assuming no adjustments, Apple might incur about $1.1 billion in tariff prices, Cook dinner stated.
The corporate reported $1.57 in earnings per share or $24.43 billion of web revenue throughout the quarter, versus $1.40 per share or $21.45 billion within the year-ago interval.
“It was an distinctive quarter by any measure,” Cook dinner instructed CNBC’s Steve Kovach.
Cook dinner stated about 1 of the corporate’s 10 proportion factors of income progress may very well be attributed to clients shopping for extra merchandise to get forward of potential tariffs.
The corporate’s most necessary enterprise stays the iPhone, which noticed 13% progress on an annual foundation throughout the quarter to $44.58 billion in gross sales.
Cook dinner stated iPhone income was sturdy as a result of the iPhone 16 is extra common in comparison with the iPhone 15 gadgets on sale final 12 months on the identical time. Cook dinner stated iPhone 16 gross sales had been up “sturdy double digits” versus its predecessor. Cook dinner particularly highlighted reputation amongst present iPhone customers upgrading to a brand new one.
Apple’s Mac enterprise grew the quickest of any of Apple’s items throughout the June quarter, rising practically 15% to $8.05 billion in income. Apple launched up to date MacBook Air laptops, its best-selling Mac, simply earlier than the quarter began.
The corporate’s companies enterprise, which incorporates Apple’s warranties, content material subscriptions, licensing offers with Google and iCloud continued to develop to $27.42 billion within the interval, a 13% improve. Cook dinner highlighted progress within the firm’s iCloud subscriptions and stated App Retailer income grew “double digits” throughout the quarter.
The 2 harder spots in Apple’s report had been iPad gross sales and the corporate’s different merchandise division, which it typically calls its wearables. It consists of Apple Watch, AirPods and different equipment. Income for iPad was down 8% to $6.58 billion, regardless of the corporate launching a low-cost iPad in March. Apple’s wearables unit declined 8.64% to $7.4 billion throughout the quarter.
Apple additionally noticed success in China throughout the quarter, with gross sales rising 4% on an annual foundation to $15.37 billion. Apple studies its gross sales from China, Hong Kong and Taiwan in the identical unit. It is a reversal from the previous two quarters, the place Apple’s China gross sales declined 2% in Apple’s second fiscal quarter and 11% within the first quarter.
Cook dinner stated a Chinese language subsidy for some gadgets helped Apple within the area.
“The subsidy does apply to a few of our merchandise, and it clearly helps,” Cook dinner stated.
‘Considerably rising’ AI investments
In June, Apple held its annual Worldwide Builders Convention, or WWDC, through which it unveiled new software program for iPhones, Macs and different gadgets, however the firm’s synthetic intelligence bulletins on the occasion underwhelmed buyers.
Cook dinner stated Apple views AI as “one of the profound applied sciences of our lifetime.”
“We’re considerably rising our investments,” Cook dinner stated about AI. “We’re embedding it throughout our gadgets, throughout our platforms and throughout the corporate.”
Cook dinner stated Apple had acquired “round” seven firms up to now this 12 months though none had been “large when it comes to greenback quantity.”
“We’re open to M&A that accelerates our roadmap,” Cook dinner stated. Apple had about $133 billion in money readily available on the finish of the June quarter.
Requested concerning the potential for AI gadgets comparable to these being developed by OpenAI to threaten gross sales of the iPhone, Cook dinner stated he believed they had been more likely to be enhances to the iPhone, not replacements.
“It is troublesome to see a world the place iPhone shouldn’t be dwelling in it,” Cook dinner instructed analysts on the earnings name.
