Apple has announced its results for the third fiscal quarter of 2025, covering April to June. The company posted revenue of $94.0 billion and a net profit of $23.4 billion or $1.57 earnings per share, outpacing analyst expectations and setting a new June-quarter revenue record. The figures mark a strong rebound after a slower first half of the year and underscore Tim Cook’s push toward high-margin subscription services while demand for hardware remains solid.
Record Services income powered the quarter, and iPhone 16 uptake exceeded that of last year’s iPhone 15 family. The results also reflect consumers rushing to purchase devices ahead of possible tariff hikes, a point Cook stressed on the earnings call. Apple confirmed it crossed the milestone of three billion iPhones shipped since 2007, while simultaneously pledging larger investments in generative AI ahead of a more personalized Siri slated for 2026.
Key numbers at a glance
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Total revenue > $94.0 billion (+10 percent Y/Y)
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Net profit > $23.4 billion (+9 percent Y/Y)
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Earnings per diluted share > $1.57 (up from $1.40)
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iPhone revenue > $44.6 billion, up 13 percent and a new June record
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Services revenue > $27.42 billion, up 13 percent and an all-time record
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Mac revenue > $8.05 billion, up 15 percent on refreshed M4 laptops
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iPad revenue > $6.58 billion, down 8 percent amid muted tablet demand
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Wearables + Home > slight rise to $7.3 billion
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Gross margin > 46.2 percent, helped by Services mix
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Cash on hand > $159 billion after $20 billion in buybacks and dividends
Services eclipse hardware growth
Services once again did the heavy lifting. Revenue climbed 13 percent to $27.42 billion, driven by App Store sales, Apple TV+, Apple Music, and expanding iCloud+ tiers. Cook said Apple Pay daily transactions have doubled year over year and the company now has 1.25 billion paid subscriptions, up 150 million in twelve months. The segment’s 72 percent gross margin shields overall profitability from hardware cycles and remains the strategic focal point for Wall Street.
iPhone 16 demand offsets tariff worries
The iPhone business delivered $44.6 billion, a 13 percent jump that beat consensus estimates by nearly $3 billion. Cook credited strong uptake of the iPhone 16 Pro Max and higher average selling prices, noting that some customers fast-tracked purchases to avoid potential tariff-driven price hikes later this year. Apple expects tariff headwinds to shave roughly $1.1 billion off Q4 revenue if imposed, but current inventory planning assumes flexibility in supplier sourcing.
Mac rebounds on M4 performance gains
After a difficult 2024 comparison, Mac revenue bounced 15 percent to $8.05 billion. The new M4-powered MacBook Air and 14-inch MacBook Pro resonated with students and creators, and educational purchasing returned to pre-pandemic rhythms. Apple highlighted a 30 percent increase in Mac trade-ins through retail stores, helping lower entry costs for new buyers.
iPad slips while wearables edge higher
The iPad lineup slipped 8 percent to $6.58 billion, still above pre-2020 levels but feeling the absence of a major redesign. Apple Watch, AirPods, and Vision Pro accessories collectively rose to $7.3 billion, a modest lift buoyed by health-tracking features and the sports-focused Apple Watch X.
AI investments and personalized Siri roadmap
Cook and CFO Kevan Parekh confirmed Apple has reallocated teams toward on-device generative AI models that will power a more context-aware Siri in 2026. Operating expenses rose 12 percent as Apple opened two new AI research hubs in Seattle and Zurich. The company will discuss early AI features at next spring’s WWDC.
Guidance for Q4 2025
Apple projects flat to slightly higher year-over-year revenue despite tariff uncertainty, with gross margin in the 45-46 percent range. Services are expected to post another record and iPhone demand should remain ahead of supply into September.
