Apple sets quarterly revenue record as earnings broadly beat expectations, shares climb
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“Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment," CEO Tim Cook said.
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July 31, 2025
09:08 PM
Fortune
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·Apple sets quarterly revenue record as earnings broadly beat expectations, s climbBy Nick LichtenbergBy Nick LichtenbergFortune Intelligence EditorNick LichtenbergFortune Intelligence EditorNick Lichtenberg is Fortune Intelligence editor and was formerly Fortune's executive editor of global news.SEE FULL BIO Apple CEO Tim Cook.David Paul Morris/Bloomberg via Getty ImagesApple blew past Wall Street expectations with its third-quarter earnings report released Thursday, revealing robust growth driven by persistent iPhone demand, surging services revenue, and resilience in key international —even as tariff anxieties and questions over its artificial intelligence (AI) roadmap loomed over the industry
For the quarter June 28, 2025, Apple posted revenue of $94 billion, representing a 10% increase compared to the same period last year
Net income soared to $1.57 per —up 12% from a year ago and significantly ahead of analyst forecasts, which had pegged earnings per at $1.43 on expected revenue of $89.22 billion
Gross margin nudged up to 46.5%
CEO Tim Cook celebrated the results, noting “Apple is ud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment.” Apple’s board declared a quarterly dividend of $0.26 per , payable August 14 to holders of record as of August 11
The installed base of active devices hit a “new all-time high,” according to CFO Kevan Parekh, underscoring Apple’s customer loyalty amid intensifying market competition
Apple s climbed more than 2.5% post-market on the results
Segment highlights Apple’s signature iPhone was the principal engine of growth, generating $44.6 billion in sales—up from $39.2 billion the previous year
This far exceeded most forecasts and reinforced the iPhone’s dominance, even as competitors ramp up their global push
The Services segment, encompassing the App Store, Apple Pay, Apple TV+, Apple Music, and iCloud, also set a new record: revenue there hit $27.4 billion, a 13% increase over last year
The success of Apple TV+ was underscored by the summer box office triumph of “F1: The Movie,” which has grossed nearly $513 million worldwide
Mac sales also posted double-digit growth, rising to $8 billion
In contrast, iPad and Wearables revenue both saw modest declines, but these were more than offset by the core and services es
International & trade dynamics Growth was broad-based—notably including China, where Apple outperformed expectations with $15.4 billion in sales
This comes amid a tense geopolitical environment: President Donald Trump, seeking to enact tariffs of at least 25% on non-U.S.-made iPhones, had warned Apple to “manufacture in the U.S., not India, or anyplace else.” The company had jected a $900 million headwind from tariffs this quarter but successfully navigated the challenge, in part by accelerating its shift in device manufacturing from China to India
Looking ahead Despite these achievements, investor scrutiny remained focused on Apple’s comparative lag in artificial intelligence rollouts—especially as competitors Meta and Microsoft grab headlines for major AI advances
Apple’s stock, while buoyed after the earnings beat, has fallen 16% year-to-date, underperforming the broader S&P 500
Still, many analysts remain bullish, citing Apple’s ecosystem strength, user retention, and ability to deftly manage global headwinds
Some analysts have expressed impatience with Tim Cook, even arguing for him to be replaced
Longtime Apple bull Dan Ives has thrown his support behind Cook but argued for a transformative M&A deal for Apple to get a leg up in the AI race, slamming a recent presentation as something that “felt an episode out of ‘Back to the Future,'” although though that was a film, not an episodic TV series
For this story, Fortune used generative AI to help with an initial draft
An editor verified the accuracy of the information before publishing
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