Date: Thursday, October 31, 2025
Company: Apple Inc. (AAPL)
Quarter Overview (Ended Sept. 27, 2025)
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Earnings per share (EPS) | $1.85 | $1.77 | Beat |
| Revenue | $102.47 billion | $102.24 billion | Beat |
Business Segment Performance
| Segment | Revenue (in billions) | Estimate | Change (YoY) |
|---|---|---|---|
| iPhone | $49.03 | $50.19 | +6% |
| Mac | $8.73 | $8.59 | +13% |
| iPad | $6.95 | $6.98 | Flat |
| Other Products (Watch, AirPods, Vision Pro) | $9.01 | $8.49 | Slight Decline |
| Services (iCloud, Music, App Store, AppleCare, etc.) | $28.75 | $28.17 | +15% |
Highlights
- Total Revenue: $102.47 billion, up 8% year over year.
- Net Income: $27.46 billion, compared to $14.29 billion last year (the previous period was impacted by a one-time tax charge).
- Fiscal 2025 Total Revenue: $416 billion — up 6% from 2024.
- Gross Margin: 47.2% (vs. 46.4% expected).
Outlook for December Quarter (Q1 FY2026)
- Revenue Growth: Expected to rise 10–12% year-over-year.
- Projected Sales: ~$137.97 billion (vs. analyst estimate of $132.31 billion).
- EPS Forecast: ~$2.53 per share.
- CEO Tim Cook said the December quarter “will be the best ever in the company’s history.”
Key Commentary from CEO Tim Cook
- Strong demand for the iPhone 17 lineup: “The reception has been off the chart.”
- Store traffic is up significantly year over year.
- China sales down 4% to $14.5 billion, but expected to return to growth next quarter.
- Services segment showed “run-of-the-table” growth, led by iCloud, App Store, and Music.
- Supply constraints on several iPhone 17 and 16 models impacted results.
- Apple plans to release a new Siri update in 2026, integrating OpenAI’s ChatGPT into Apple Intelligence.
Additional Financial Notes
- Tariff costs: $1.1 billion this quarter; expected to rise to $1.4 billion in December quarter.
- Apple absorbed these costs instead of raising prices.
- Mac sales driven by the MacBook Air, which saw a $100 price cut earlier in the year.
- iPad sales were stable; new iPad Pro with M5 chip launched in October.
Summary
Apple continues to show strong financial performance, driven by double-digit Services growth and robust demand for its new iPhone models. Despite minor supply challenges and weaker China sales, the company’s guidance points to a record-breaking holiday quarter, backed by strong consumer enthusiasm and expanding AI partnerships.