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Tim Cook dinner, chief government officer of Apple Inc., opens the door throughout the first day of in-store gross sales of Apple’s newest merchandise at Apple’s Fifth Avenue retailer in New York, US, on Friday, Sept. 19, 2025.
Kena Betancur | Bloomberg | Getty Photographs
Apple reported fiscal-fourth quarter earnings on Thursday that beat analyst expectations, and supplied a robust forecast for the corporate’s December quarter.
Shares of the iPhone maker rose in prolonged buying and selling.
This is how the iPhone maker did versus LSEG consensus estimates for the quarter ending September 27:
- EPS: $1.85 vs. $1.77 estimated
- Income: $102.47 billion vs. $102.24 billion estimated
This is how Apple’s principal enterprise strains did versus consensus estimates:
- iPhone income: $49.03 billion vs. $50.19 billion estimated
- Mac income: $8.73 billion vs. $8.59 billion estimated
- iPad income: $6.95 billion vs. $6.98 billion estimated
- Different Merchandise income: $9.01 billion vs. $8.49 billion estimated
- Providers income: $28.75 billion vs. $28.17 billion estimated
Apple CEO Tim Cook dinner instructed CNBC’s Steve Kovach that income within the present quarter will enhance by not less than 10%.
“We anticipate whole firm income to develop by 10 to 12% yr over yr, we anticipate iPhone income to develop double digits, yr over yr, and we anticipate that that may make the December quarter the very best ever within the historical past of the corporate,” Cook dinner mentioned.
Analysts polled by LSEG anticipate Apple to information to $132.31 billion in December quarter gross sales and earnings of $2.53 per share. Apple’s information surpasses these expectations. With 11% progress over final yr’s December quarter, income for the upcoming interval could be $137.97 billion.
Cook dinner mentioned that Apple was assured in its steerage due to the sturdy reception for the corporate’s new iPhone 17 units, launched in September, which he mentioned was “off the chart.”
“We have a look at the outcomes thus far, the reception of the buyer on the very sturdy iPhone lineup,” Cook dinner mentioned. “We’re taking a look at visitors in our shops, which is up considerably yr on yr. We see enthusiasm around the globe.”
The corporate had $27.46 billion in web earnings throughout the quarter versus $14.29 billion within the year-ago interval, which was decrease due to a one-time tax cost.
For Apple’s fiscal 2025, it had $416 billion in whole income, a 6% enhance over 2024. Gross sales within the September quarter rose 8% on an annual foundation.
General iPhone income was up 6% to $49.03 billion, the primary signal of how iPhone 17 gross sales are faring. Apple’s latest telephones went on sale on Sept. 19, so there may be simply over per week of gross sales on this quarter.
Nonetheless, LSEG analysts had been searching for $50.19 billion in iPhone gross sales for the interval.
Cook dinner mentioned that a number of iPhone fashions had been provide constrained throughout the quarter — each for the iPhone 17 and final yr’s iPhone 16 fashions.
“At the moment, we’re provide constrained on a number of fashions of the iPhone 17,” Cook dinner mentioned.
Apple’s iPad enterprise was additionally flat throughout the quarter, with $6.95 billion in gross sales. Apple did not launch a brand new mannequin throughout the quarter, nevertheless it launched an upgraded iPad Professional with an up to date M5 chip in October.
The corporate’s providers enterprise, which incorporates on-line subscriptions reminiscent of iCloud, Apple Music, in addition to App Retailer charges, Google search licensing, fee charges, and AppleCare warranties for {hardware}, grew 15% to $24.97 billion in gross sales. The unit is Apple’s fastest-growing and necessary for buyers as a result of it represents recurring income with the next revenue margin than {hardware}.
Cook dinner mentioned that a lot of the elements within the Providers enterprise had been seeing accelerating progress.
“It was a run of the desk,” Cook dinner mentioned. Apple CFO Kevan Parekh mentioned on an earnings name with analysts that Apple expects comparable Providers progress within the present quarter.
Different Merchandise, a class that features Apple Watch, AirPods and Imaginative and prescient Professional, declined very barely throughout the quarter with gross sales of $9.04 billion.
Apple’s Mac enterprise confirmed sturdy 13% progress to $8.72 billion in gross sales. Cook dinner attributed the expansion to sturdy gross sales of the corporate’s MacBook Air laptop computer, which had been refreshed in March alongside a $100 worth minimize, decreasing its beginning worth to $999.
The corporate’s gross sales in Higher China, which incorporates Hong Kong and Taiwan, fell 4% on an annual foundation to $14.5 billion in gross sales.
“We anticipate China to return to progress this quarter due to the reception of the iPhone there, or the iPhone 17 household,” Cook dinner mentioned.
Cook dinner mentioned that the corporate nonetheless plans to launch an up to date model of Siri subsequent yr, and mentioned that there have been extra forthcoming partnerships like the corporate’s settlement to combine OpenAI’s ChatGPT into Apple Intelligence.
“Our intention is to combine with extra individuals over time,” Cook dinner mentioned.
Cook dinner mentioned that Apple had not modified its costs in response to Trump administration tariffs. Parekh mentioned that Apple incurred $1.1 billion in further prices associated to tariffs throughout the September quarter. He mentioned APple expects $1.4 billion in tariff prices on an earnings name with analysts, and that Apple’s gross margin could be between 47% and 48%.
“We held the pricing that we’d have performed with none tariffs, and we’re simply absorbing the tariffs in gross margin,” Cook dinner mentioned. Apple’s gross margin was 47.2%, higher than LSEG expectations of 46.4%.
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