Apple's $94B Q3 soundly beats Wall Street thanks to iPhone and China growth

AppleInsider

In what is the last quarter where Apple will only take a minimal hit from grossly increased tariffs, the company posted $94 billion in earnings with a notably better-than-expected iPhone, growth in China, and strong Mac business segments.

Apple CEO Tim Cook [left], CFO Kevan Parekh [right]

Apple has published its quarterly financial results for Q3 2025, and it has beaten expectations once again. The quietest quarter in Apple's seasonally-affected financials schedule, the period is considerably better than first thought.

The results arrive ahead of the traditional conference call with analysts and investors, which is hosted by CEO Tim Cook and new CFO Kevan Parekh. During the call, the duo will discuss more details about the figures, as well as the impact of tariff changes against the business.

Apple quarterly revenue and net profit as of Q3 2025

For the second quarter, Apple's revenue reached $94.04 billion, up from the $85.78 billion reported in Q3 2024. The earnings per share of $1.57 is also up from the year-ago $1.40.

In pre-financials forecasts, the Wall Street consensus put revenue at around $89.1 billion, with a range between $92.1 as a high and $86.9 as a low. The EPS forecast was at $1.43, with a high of $1.54 and a low of $1.32.

Apple's unit revenue, as per Q3 2025

For the period, iPhone went from $39.3 billion in the year-ago quarter to $44.58 billion this time. Revenue from iPad at $6.58 billion is down from the $7.16 billion reported in Q3 2024.

Mac revenue grew from $7.01 billion to $8.05 billion. Wearables, Home, and Accessories moved from $8.09 billion last year to $7.4 billion this year.

Services continued its ever-ongoing upward growth trend, shifting from $24.2 billion for Q3 2024 to $27.4 billion for Q3 2025.

"Today 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," said Tim Cook.

Kevan Parekh said Apple is "very pleased" with its business performance for the June quarter, which generated earnings per share growth of 12%.

Apple's quarterly iPhone revenue, as of Q3 2025

Apple's install base of devices has also reached a new all-time high across all product categories and geographic segments. However, while Parekh doesn't state how much this is in the prepared statement, it may come up during the call with analysts.

Parekh does attribute this effect to "very high levels of customer satisfaction and loyalty."

Apple's board of directors has declared a cash dividend of $0.26 per share of the Company's common stock.



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discountopinion

Rest of Asia Pacific: +20.1% ($6.4B → $7.7B) - Strongest growth

This is very very very exciting and will play out over the years to come. India, Indonesia and the rest will likely rival China as a market segment in the medium term.

Services at 75.6% gross margin and still growing double digits year on year and 2.9% sequentially quarter on quarter. Beast mode.

i am very positively surprised. Great job by the Apple team

mrwitt

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

voice-of-reason

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

this is a mind-numbingly ignorant comment. Tariffs do NOT address trade deficits. No matter how high we "tariff" Vietnam, they do not have enough people or income to balance trade with us. You have to know this. I simply can't believe you actually believe a tariff war will even out trade deficits. 

nubus

studiomusic said:

As usual, Apple nails it!

Apple delivered 9% net income growth while Microsoft hit 24%. Deduct currency tailwinds of 2% and inflation of 3% and it is more like 4% vs. 19%.
The growth in services from Apple at 24% is impressive but Microsoft did even better at 34%.

Microsoft joined the 4 trillion club today while Apple is fighting tariffs, legal battles, brain drain, and a series of strategic misfires.
It will take years for Apple to nail. But customers are loyal and a few steps in the right direction can always change things.

avidthinker

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

As someone with a graduate degree in economics, I can objectively state that you have no idea what you're talking about.

n2macs

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

Tariffs will even the playing field. Like them or not.

avidthinker

n2macs said:

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

Tariffs will even the playing field. Like them or not.

see above

So you like paying taxes... gotcha!

mike wuerthele

n2macs said:

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

Tariffs will even the playing field. Like them or not.

Tariffs will shift taxation to US companies, then the consumer, while the exporting country laughs and pays nothing at all to export that stuff.

Tariffs have zero to do with "gross trade deficits."

mark fearing

n2macs said:

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

Tariffs will even the playing field. Like them or not.

What field are you talking about and why would that field matter? I dare say you have no idea what tariffs do and who pays them. And trade deficits are not a bad thing, when your spending is fine. But by adding 4 trillion to the real deficit the orange one makes sure that the nation is still headed for default. Trade deficit or not.

rjharlan

I completely agree with the others who have stated that tariffs have nothing to do with ‘gross trade deficits”.  Tariffs are a tax placed on the importer of goods into a country from another country. They either choose to eat that cost (highly unlikely if the CEO/owner wishes to keep their job) or pass it on to the consumer in a price increase. Usually they’ll dress that up as some sort of fancy enhancement worthy of the increase so that the consumer will feel comfortable with the price increase. The Trump administration is acting in a surprisingly anti business way for a Republican administration by doing this. Usually, conservative politicians focus on increasing opportunities for business and improving profitability. I find it interesting that a man with Trump’s degree is taking this economic approach. Honestly, it makes no sense. 

9secondkox2

But… but I thought Apple’s quarter was supposed to be really bad because of tarriffs… LOL

Oh wait… it must be because some randos were “panick-buying YEAR-OLD IPHONES or something…

now that that’s over with, be interesting to see what the iPhone 17 price tag will be, because it’s supposed to be way higher, right? 

Maybe the sensationalism can calm down and we can get on with the fact that fair and balanced trade is a good thing and though it has a way to go, has been a long time coming. 

edited July 31

danox

Just took a look around at some of the other tech sites along Seeking Alpha the financial site. Apple had a very good quarter in trying times no surprise no real mention was made about Apple’s quarter, most of the sites are taking a deep breath, and are reloading to make up a new negative spin.

sconosciuto

mrwitt said:

Tariffs are a very positive long term strategy.

Even if this magical thinking was true… your messiah is:

*using tariffs as a retaliatory foreign policy tool completely disengaged from economics and trade (the Brazil tariffs intended to force Brazil to corruptly manipulate its justice system to aid an ideological ally)

*erratically applying tariff rates untethered from reality and later postponing them, creating tremendous uncertainty in markets

*damaging the value of the USD, which has declined precipitously vs other currencies

*inflicting great damage on US automakers’ profits

*making China look increasingly more desirable as a trade partner. China’s leadership is rational, stable, and seems to understand economics. China doesn’t base its economic policies on personal grudges and capricious whims. China doesn’t whipsaw between radically different economic and foreign policy goals every four to eight years. China doesn’t make agreements and then capriciously throw them out the window shortly thereafter as Trump has done with a trade deal made with Canada in his first term.

I don’t expect any of these facts to influence the opinions of devoted Trump cultists, who will always find a way to displace the blame for the negative fallout from their messiah’s deeply irrational policies onto Hunter Biden’s laptop or Hillary Clinton or drag queens or whatever else is the right wing’s latest ginned-up enemy of All That Is Good And Right.

sconosciuto

voice-of-reason said:

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

this is a mind-numbingly ignorant comment. Tariffs do NOT address trade deficits. No matter how high we "tariff" Vietnam, they do not have enough people or income to balance trade with us. You have to know this. I simply can't believe you actually believe a tariff war will even out trade deficits. 

Trump cultists will believe whatever their cult leader decrees, updated regularly. Last year they were vehemently in favor of releasing the Epstein files; this year they are protecting pedophiles 🤷‍♂️🤦‍♂️

mike wuerthele

9secondkox2 said:

But… but I thought Apple’s quarter was supposed to be really bad because of tarriffs… LOL

Oh wait… it must be because some randos were “panick-buying YEAR-OLD IPHONES or something…

now that that’s over with, be interesting to see what the iPhone 17 price tag will be, because it’s supposed to be way higher, right? 

Maybe the sensationalism can calm down and we can get on with the fact that fair and balanced trade is a good thing and though it has a way to go, has been a long time coming. 

You're conflating two things. The quarter was supposed to be really bad because of China.. That clearly didn't happen. And, China sales didn't get impacted by tariffs, obviously.

Apple did have an financial impact, as Cook said last quarter, because of tariffs that they wouldn't have had otherwise. It was $800 million that they paid that they wouldn't have had to. That'll be $1.2 billion next quarter.

https://appleinsider.com/articles/25/07/31/apple-staring-down-2-billion-in-total-tariff-costs-in-total-before-end-of-september

So, $2 billion, that it didn't have to pay before the tariff revisions in April.

Had China not unexpectedly returned to growth, Apple would have had the bad quarter.

edited August 1

blastdoor

voice-of-reason said:

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

this is a mind-numbingly ignorant comment. Tariffs do NOT address trade deficits. No matter how high we "tariff" Vietnam, they do not have enough people or income to balance trade with us. You have to know this. I simply can't believe you actually believe a tariff war will even out trade deficits. 

You’re both wrong. 

humbug1873

It's going to be tough ... as a customer I will no longer buy American, if that can be avoided. I guess I'm not alone in that in the civilized world. As a stockholder I'm pissed, that Apple is eating the tariff taxes - Americans should pay more for Apple products as in a big beautiful bill with added Trump Taxes  - thankfully I sold most of my AAPL stock after the last election (at almost peak AAPL), time to get my money out of the US.

linkman

voice-of-reason said:

mrwitt said:

Tariffs are a very positive long term strategy. Our country has been taken to the cleaners for years with gross trade deficits.

this is a mind-numbingly ignorant comment. Tariffs do NOT address trade deficits. No matter how high we "tariff" Vietnam, they do not have enough people or income to balance trade with us. You have to know this. I simply can't believe you actually believe a tariff war will even out trade deficits. 

Tariffs will encourage companies to move production to domestic which avoids tariffs. This can keep the price to the retail consumer lower than if a tariff were applied. Let's say a clothing manufacturer imports 1M units a year from Vietnam, responds to tariffs by producing those 1M units in the USA -- end result is a more balanced trade. So yes, tariffs can level out trade deficits with the smallest and/or poorest of countries.

neoncat

Let's say a clothing manufacturer imports 1M units a year from Vietnam, responds to tariffs by producing those 1M units in the USA

Except they won't. Because there's no reward for doing so. The PR benefit is momentary, if it even exists.  Corporations will chose to lean on foreign partners, moving manufacturing around as needed (not unlike Apple, shifting from China to India) to make sure they continue to serve both domestic and international customers with product and efficiencies of manufacture are maintained. Tariffs will be passed on to the consumer, like any CODB. Why would they do otherwise? Economic policy changes, administrations come and go. But maximizing profit and lowering barriers to purchase through effective pricing and marketing will ultimately outlast the political noise du jour.

edited August 1