Apple (AAPL) earnings report Q2 2025

Apple reported second fiscal-quarter earnings Thursday that beat Wall Road expectations, however the firm’s closely-watched Companies division got here up mild versus estimates.  

Shares of the iPhone maker fell as a lot as 4% in prolonged buying and selling.

Here is how Apple did versus consensus estimates for the quarter ending in March: 

• EPS: $1.65 vs. $1.63 estimated by LSEG 
• Income: $95.4 billion vs. $94.66 billion estimated by LSEG 
• iPhone income: $46.84 billion vs. $45.84 billion estimated, per StreetAccount 
• Mac income: $7.95 billion vs. $7.77 billion estimated, per StreetAccount  
• iPad income: $6.4 billion vs. $6.20 billion estimated, per StreetAccount 
• Wearables, Dwelling, and Equipment income: $7.52 billion vs. $7.95 billion, per StreetAccount 
• Companies income: $26.65 billion vs. $26.70 billion, per StreetAccount 
• Gross margin: 47.1% vs. 47.1%, per StreetAccount

Prepare dinner supplied Apple’s first feedback on the affect of tariffs on its enterprise on an earnings name with analysts, saying the corporate noticed “limited impact” within the March quarter as a result of it was capable of optimize its provide chain.

Apple expects general income to develop “low to mid-single digits” on an annual foundation through the present quarter, ending in June, finance chief Kevan Parekh mentioned on the decision. Apple reported $85.78 billion in gross sales through the June quarter final yr.

The corporate additionally expects gross margin to come back in at 46% on the midpoint, making an allowance for tariff prices. Analysts had been in search of third-quarter steerage of $1.48 in earnings per share on $89.45 billion of gross sales.

Apple expects tariffs so as to add $900 million to its prices for the present quarter, assuming no new tariffs or different main adjustments happen, Prepare dinner mentioned on the decision. Nonetheless, he added that it’s “very difficult” to foretell past June “because I’m not sure what will happen with tariffs.”

“We will manage the company the way we always have with thoughtful and deliberate decisions, with a focus on investing for the long term and with dedication to innovation and the possibilities it creates,” Prepare dinner mentioned on the decision. “As we look ahead, we remain confident.”

Prepare dinner advised CNBC that Apple is already sourcing about half of the iPhones for the U.S. from India, and most of its different merchandise for the U.S. from Vietnam, the place tariffs are decrease than they’re from China. Apple nonetheless makes the “vast majority” of its merchandise for different international locations in China, Prepare dinner mentioned.  

The iPhone makes use of plenty of chips made domestically, mentioned Prepare dinner, including that Apple is shopping for 19 billion chips this yr from the U.S.  

“With an iPhone, you really have to go a step lower and look at the individual parts and where they come from,” he mentioned.  

Apple mentioned its board licensed as much as $100 billion in share repurchases this quarter, down from $110 billion in authorization final yr. Apple additionally mentioned it will pay a dividend of 26 cents per share, a 4% improve. 

“We continue to plan for annual dividend increases,” Prepare dinner mentioned.  

The corporate reported $1.65 per share on $24.78 billion of internet revenue through the quarter, versus $23.64 billion, or $1.53 per share, within the year-ago interval. 

The corporate’s most vital product line, iPhones, topped estimates at $46.8 billion in gross sales through the quarter. The general product line’s gross sales had been up just below 2% on an annual foundation.  

Apple’s worthwhile Companies division consists of iCloud subscriptions, providers like Apple Music and Apple TV+, warranties and income from search licensing offers like its settlement with Google.  

Prepare dinner hailed Companies progress to $26.65 billion in income through the quarter, an annual improve of 11.65%. Nonetheless, Companies income got here in just below StreetAccount expectations, and final yr, Apple’s providers division grew 14.2% through the March quarter.  

Apple {hardware} typically did nicely through the quarter. 

Mac gross sales rose almost 7% to only underneath $8 billion, and iPad gross sales had been up 15% on an annual foundation to $6.4 billion. Apple launched new mid-priced iPad Air and MacBook Air fashions in March.  

Nonetheless, Apple’s wearables division, which incorporates Apple Watch, AirPods and equipment gross sales, declined 5% versus the identical interval final yr to $7.52 billion in income. Prepare dinner attributed the decline, partially, to the launch of the Imaginative and prescient Professional headset within the yr in the past quarter. 

Gross sales in Better China, which incorporates Taiwan and Hong Kong, had been down barely year-over-year at $16 billion. Prepare dinner mentioned that China gross sales had been accelerating on a quarterly foundation, and that Apple gross sales within the area would have been flat if not for international alternate charges.  

Alternatively, gross sales within the Americas, Apple’s largest market that has seen some elevated client demand forward of tariffs, rose almost 8%. Prepare dinner advised CNBC’s Steve Kovach that Apple had not seen proof of order “pull forward” due to tariffs.  

“We don’t believe that there was a significant pull forward due to tariffs into the March quarter,” Prepare dinner mentioned. “There’s no obvious evidence of it.” 

Throughout the quarter, Apple delayed a few of its AI options introduced final summer season to the “coming year,” which some analysts mentioned may cut back the attraction of Apple’s newest iPhones.

This included options for Apple’s Siri AI voice assistant that had been the main target of commercials the corporate has since taken down.”We need more time to complete our work on these features so they meet our high quality bar,” Prepare dinner mentioned on an earnings name with analysts.

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