Apple CEO Tim Cook dinner holds up a brand new iPhone 17 Professional throughout an Apple particular occasion on the firm’s headquarters in Cupertino, California, Sept. 9, 2025.
Justin Sullivan | Getty Pictures
Apple issued a better-than-expected income forecast for the present interval after beating on gross sales and earnings within the fiscal second quarter. The inventory rose about 5% in prolonged buying and selling.
Gross sales for iPhones missed estimates for the second time in three quarters, the one vital quantity that got here up wanting expectations in Thursday’s report.
Here is how the corporate did in comparison with analyst estimates, in accordance with LSEG consensus.
- EPS: $2.01 vs. $1.95
- Income: $111.18 billion vs. $109.66 billion
Wall Road can also be these key areas:
- iPhone income: $56.99 billion vs $57.21 billion anticipated
- Mac income: $8.4 billion vs. $8.02 billion anticipated
- iPad income: $6.91 billion vs. $6.66 billion anticipated
- Wearables, House and Equipment income: $7.9 billion vs. $7.7 billion anticipated
- Providers income: $30.98 billion vs. $30.39 billion anticipated
- Gross margin: 49.3% vs. 48.4% anticipated
Income climbed 17% from $95.4 billion a 12 months earlier, Apple stated. The outcomes mark the primary time the corporate is going through Wall Road for the reason that announcement final week that Tim Cook dinner will probably be stepping down as CEO after 15 years on the job.
The corporate stated on the earnings name that income within the June quarter will enhance between 14% and 17% from a 12 months earlier. Analysts had been anticipating progress of 9.5% to $103 billion, in accordance with LSEG.
Apple stated its board approved a further $100 billion in inventory repurchases and declared a money dividend of 27 cents per share, up 4%.
Gross sales of iPhones rose 22% within the quarter from a 12 months earlier. Like different shopper electronics firms and system makers, Apple faces provide chain constraints, largely as a result of international reminiscence scarcity that is being pushed by hovering synthetic intelligence demand. Meta and Microsoft stated Wednesday that increased reminiscence costs contributed to their elevated capital expenditures forecasts for the 12 months.
Cook dinner stated on the earnings name that the iPhone 17 is now the “hottest lineup in our historical past” and famous that total income beat steering “regardless of provide constraints.” CFO Kevan Parekh stated the corporate confronted provide constraints on iPhones and Macs.
Together with sturdy income steering, Cook dinner made clear to traders that the reminiscence crunch is not going away. He stated the affect within the December quarter was “minimal” and that there was a bit extra of a success within the March interval.
Within the present quarter, “we count on considerably increased reminiscence prices,” Cook dinner stated. Going past that, “we consider reminiscence prices will drive an growing affect on our enterprise,” which is able to lead the corporate to “take a look at a spread of choices,” he stated.
In March, Apple introduced numerous new merchandise, together with its iPhone 17e, a refreshed iPad Air laptop computer with an M4 chip in 11-inch and 13-inch sizes. it additionally unveiled the MacBook Neo, a low-cost laptop computer priced at $599 and geared toward college students and budget-conscious customers.
Whereas system gross sales are all the time key to Apple’s outcomes, prime of thoughts for Wall Road is what to anticipate from incoming CEO John Ternus. Apple introduced on April 20, that Ternus is succeeding Cook dinner, who will turn out to be government chairman on Sept. 1.
Ternus, a longtime Apple exec who’s been operating {hardware}, joined the decision and was launched by Cook dinner.
“We have now the best chief able to step into the position,” Cook dinner stated in his opening remarks, including that Apple has the group to comprehend the “promise of this firm.”
Ternus thanked Cook dinner and Apple’s shareholders and stated, the corporate has an “unbelievable roadmap forward.”
“And when you’re not going to get me to speak in regards to the particulars of that roadmap, suffice it to say, that is probably the most thrilling time in my 25-year profession at Apple to be constructing services and products,” Ternus stated.
Google partnership
One of many first issues Ternus has to work out is the place Apple goes to go together with synthetic intelligence. Early within the quarter, Apple introduced it will accomplice with Google to make use of its Gemini AI mannequin to energy its Siri product.
Through the Q&Part of the earnings name, Cook dinner stated, “the collaboration with Google goes properly,” and that the corporate is “pleased with the place issues are and we’re pleased with the work that we’re doing independently as properly.”
Providers income within the quarter rose about 16% from $26.65 billion a 12 months in the past. Apple makes use of its large buyer base — and a complete of over 2.5 billion energetic units in the marketplace — to promote subscriptions to leisure providers, in addition to to providers for Apple Pay, iCloud and AppleCare.
Together with progress in providers, Apple generates increased revenue margins. Lengthy caught within the excessive 30s, Apple’s gross margin has been steadily transferring up lately, reaching 49.3% within the newest quarter up from 48.2% within the earlier interval.
Higher China gross sales elevated in the course of the quarter to $20.5 billion, up 28% from $16 billion a 12 months in the past. The China area is Apple’s third greatest, behind Americas and Europe.
Analysis and growth prices elevated at a a lot quicker tempo than income, rising 33% within the quarter to $11.42 billion from $8.55 billion a 12 months earlier.
Cook dinner stated, in regards to the R&D figures, that the corporate is “clearly investing extra,” partially as a result of AI progress potential it sees.
“We’re investing in services and products, and we see alternatives in each of these,” he stated.
Parekh adopted by saying that the corporate believes “AI is a extremely vital funding space for Apple and we’ll be doing that incrementally on prime of what we usually spend money on our product roadmap.”
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