Apple to report Q2 2025 earnings on May 1

AppleInsider

Earnings for what may be Apple's last quarter without massive tariffs, that saw releases of iPhone 16e, updated Macs, and new iPads will be announced on May 1, followed by a conference call.

The second quarter had several new products released. Image credit: Apple

Apple's first quarter isn't always the most exciting one for the company, as the holiday quarter is tough to follow. However, there may be a mild boost to some categories when compared year-over-year thanks to new product releases.

An Investor Relations post from Apple revealed that the earnings for fiscal quarter two would be shared on April. As always, the earnings call will follow shortly after where executives will discuss the earnings and answer analyst questions -- and we're expecting a huge amount of questions about how Apple will handle the tariff situation.

After two full quarters into iPhone 16 and Apple Intelligence, eyes will also be on the iPhone portion for signs of waning demand. There's little chance that the recently announced AI feature delay will have had enough time to impact the quarter, and iPhone 16e could help boost the numbers.

Apple released a few products during the quarter, but iPhone 16e was the only one with a majority of the quarter to generate sales. The new Macs and iPads could help those numbers, but they didn't ship until March 12.

The MacBook Air with M4 will likely prove as popular as ever thanks to its new lower $999 price for the latest model. M3 models released less than a year prior, so the demand for those products may not have had time to decline prior to the quarter.

The third entry devices released in the quarter was the iPad A16 -- 11th-generation model. The base iPad is always a strong seller, but the new model is a small spec bump that lacks Apple Intelligence and likely won't drive demand.

The iPad Air got the M3 chip, and like the iPad 11, it's a popular model that sells throughout the year. Mac Studio got upgraded with M4 Max and M3 Ultra, but the niche product is expensive.

Regardless, all these products besides the iPhone 16e likely had little, if any, effect on the overall earnings. They might help improve compares slightly year-over-year, but don't expect any records.

And, President Trump's tariffs were announced well after the quarter ended. Earnings will not be impacted at all by them, nor from panic-buying of iPhones and other hardware.

AppleInsider will have a breakdown of the earnings report and the call as always.



Read on AppleInsider

ramanpfaff

I'm guessing we'll hear the word headwinds many times during this call. Other question of interest is what they'll do with dividends. Most seem to think up it by one penny like they did last year. I'm hoping for two pennies. 

jib

As much as I would like to see the dividend increase, with the upcoming tariffs I think it is the wrong time to increase dividends.  In fact, I would not be surprised if there is a decrease coming either this quarter or next to offset some of the tariffs.

mpantone

For sure "headwinds" will be mentioned in the analyst conference call.

I'm less confident that Apple will reduce dividends and very doubtful they will increase them. The more likely scenario is to keep dividends the same for at least one quarter to see how things settle out.

Apple's dividends are so small percentage-wise that a slight trimming of dividends isn't going to make any significant offset due to increased tariffs.

And if Apple immediately slashes the dividend payout it will draw scrutiny and criticism from pension plan and retirement fund administrators, not just retail investors. It will also open the door for the rest of the Fortune 500 to reduce their dividend payouts which is far more serious than just Apple saying it. Apple's senior management knows this.

If Apple wants to maintain their profitability, they will need to pass the tariffs onto consumers. One thing we can expect is to see are tariffs as a separate line item in their financial reports as they will now be sizable enough to affect the company's finances. Until now, there has been a tax item in these numbers.

edited April 8

nyc362

Unless something changes in the next 22 days, headwinds will be an understatement.  

I'm sure the dividend payout will remain the same- a comment above mine says, lowering it would arouse even more panic.  What I would hope to hear is how they plan to navigate the issue of tariffs- How much production can be moved to countries where the tariff is lower, etc.  Will prices of services go up to help provide more income to soften the blow on the hardware side?

While I would doubt this will happen, since it's just not Apple's style, I want to see any price increase in the store itemize EXACTLY how much of it is a result of the tariffs.

Sort of like:
iPhone 16 Pro Max 256GB: $1099
Trump Tariff:                         $  400 
Final Price (exc. Sales Tax): $1499

In fact, every single product sold in this country, from every company should do the same.  Let people see exactly how much the man in the White House is costing us. 

ramanpfaff

I still think Apple will up the dividend just to keep their streak going. But there is always the chance it could be a half penny rather than a full one. I remember after a split a few years ago that the dividend was $0.205 for at least one quarter (can't actually remember if it was the entire year or not).

stabitha_christie

ramanpfaff said:

I still think Apple will up the dividend just to keep their streak going. But there is always the chance it could be a half penny rather than a full one. I remember after a split a few years ago that the dividend was $0.205 for at least one quarter (can't actually remember if it was the entire year or not).

It was two quarters in 2020. They did 4:1 split midyear and for the first two quarters it was $0.82 the second two quarters were the $0.205 you are remembering. 

sitime

NYC362 said:

Unless something changes in the next 22 days, headwinds will be an understatement.  

I'm sure the dividend payout will remain the same- a comment above mine says, lowering it would arouse even more panic.  What I would hope to hear is how they plan to navigate the issue of tariffs- How much production can be moved to countries where the tariff is lower, etc.  Will prices of services go up to help provide more income to soften the blow on the hardware side?

While I would doubt this will happen, since it's just not Apple's style, I want to see any price increase in the store itemize EXACTLY how much of it is a result of the tariffs.

Sort of like:
iPhone 16 Pro Max 256GB: $1099
Trump Tariff:                         $  400 
Final Price (exc. Sales Tax): $1499

In fact, every single product sold in this country, from every company should do the same.  Let people see exactly how much the man in the White House is costing us. 

Have you noticed how quiet the CEOs of S&P 500 (and similar-size) companies have been in criticizing Trump directly over the tariffs? A itemized line on an Apple Store receipt showing the exact dollar amount of the “Trump Tariffs” is probably not going to happen. (Very doubtful, as you similarly-said in your reply that I’m quoting.)

Maybe that will happen with smaller companies with CEOs willing to dive deep into the mucky, swampy waters of American politics. But let’s not expect any such courage/stupidity amongst the likes of Tim Cook and other high-profile CEOs.

Let’s not forget that Tim Apple personally donated $1 million to Trump’s inauguration fund just 14 or so weeks ago. It feels longer than 14 weeks ago, right? It feels like we are in year-three of this, but it’s only month-three.

We’ve also all seen what happened to The Walt Disney Company when it opposed Ron DeSantis and the Republican legislature in Florida: Bob Chapek out as CEO and Bob Iger back in as CEO for a second go-around.

It would take an especially courageous/stupid high-profile CEO of a consumer-facing brand to get the ball rolling with an itemized “Trump Tariff” receipt (and take all the initial threats — both political threats and actual violent threats) before other high-profile CEOs of consumer-facing brands even think about the possibility of maybe doing something similar sometime on an undetermined possible future date.

edited April 9

sitime

jib said:

As much as I would like to see the dividend increase, with the upcoming tariffs I think it is the wrong time to increase dividends.  In fact, I would not be surprised if there is a decrease coming either this quarter or next to offset some of the tariffs.

Apple can easily (very easily) pay the current dividend from earnings (as well as easily pay for a dividend increase). The likelihood of Apple cutting the dividend is very slim. Apple cutting the dividend would surprise the market and tank shares even more than what has already occurred.

Even if Apple couldn’t afford the dividend (which Apple can definitely afford), Apple has $53.77 billion in cash. That’s about $3.58 in cash per share (while the dividend only costs Apple about $1.00 per share annually).

There will be companies out there that will struggle mightily because of these tariffs. And those companies — if they pay a dividend — will need to consider a dividend cut (or a full suspension of the dividend). But Apple isn’t one of those companies. Apple’s profitability will take a hit, but they will almost certainly remain profitable. If it get to a point where Apple (with its current level of profitability and $53.77 billion in cash saved up) needs to cut its dividend, then everything has truly gone to hell (… well, more so than currently).

This is a bad situation (understatement of understatements). But it’s also important to keep in mind that: This isn’t a global pandemic level of bad. During the global pandemic global economic activity came crashing down and millions of people died. This isn’t that.