Apple has once again exceeded market expectations with its fiscal fourth-quarter earnings, signaling a powerful close to 2025 and setting the stage for a record-breaking December quarter. The company’s performance is being fueled by the overwhelming success of the newly launched iPhone 17 series, which CEO Tim Cook described as having an “off-the-chart” reception from consumers.
Apple’s Earnings Beat Expectations
In its most recent report, Apple announced results that surpassed Wall Street forecasts. For the quarter ending September 27, Apple reported earnings per share (EPS) of $1.85, beating the expected $1.77, and revenue of $102.47 billion, slightly higher than analysts’ estimates of $102.24 billion.
The company’s key business lines performed as follows:
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iPhone revenue: $49.03 billion (vs. $50.19 billion estimated)
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Mac revenue: $8.73 billion (vs. $8.59 billion estimated)
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iPad revenue: $6.95 billion (vs. $6.98 billion estimated)
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Other Products: $9.01 billion (vs. $8.49 billion estimated)
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Services: $28.75 billion (vs. $28.17 billion estimated)
Apple’s strong performance highlights its continued dominance in the tech sector, particularly in its growing services division, which provides high-margin recurring income through Apple Music, iCloud, App Store, and AppleCare.
Tim Cook’s Confident Forecast for Record Growth
Apple CEO Tim Cook told CNBC that the company expects total revenue for the current quarter, ending in December, to grow between 10% and 12% year-over-year, making it the best December quarter in Apple’s history.
“We expect total company revenue to grow by 10 to 12% year over year. We expect iPhone revenue to grow double digits,” said Cook.
Analysts had forecasted $132.31 billion in revenue and $2.53 in earnings per share for the December quarter. However, Apple’s guidance points to approximately $137.97 billion in expected revenue, surpassing market expectations by a wide margin.
iPhone 17 Drives Apple’s Momentum
Launched in September, the iPhone 17 lineup is being hailed as one of Apple’s most significant upgrades in years. The devices feature a refreshed design, improved camera systems, and upgraded performance that have resonated strongly with consumers.
Cook emphasized the “extraordinary response” the iPhone 17 has received globally. “We’re seeing traffic in our stores up significantly year on year. We see enthusiasm around the world,” he added.
However, despite strong demand, Apple is currently supply constrained for several iPhone 17 models. Cook confirmed that certain models are facing limited availability due to high demand and production bottlenecks.
Detailed Breakdown of Apple’s Performance
Apple’s total net income for the quarter reached $27.46 billion, a significant increase from $14.29 billion a year ago, largely due to one-time tax impacts in the previous year. Overall, the company achieved $416 billion in total fiscal 2025 revenue, representing a 6% increase from 2024.
iPhone sales rose 6% year-over-year to $49.03 billion — an impressive feat considering only one week of iPhone 17 sales was captured in this quarter.
The Mac division performed strongly as well, growing 13% year-over-year to $8.72 billion in revenue, driven by robust sales of the MacBook Air, which received a $100 price reduction earlier this year.
Meanwhile, iPad sales were flat at $6.95 billion, although Apple expects an uptick in the next quarter following the launch of the M5-powered iPad Pro in October.
The Services division, which includes Apple Music, App Store fees, iCloud subscriptions, and Google search licensing, grew 15% to $24.97 billion, reaffirming its position as Apple’s fastest-growing segment. CFO Kevan Parekh stated that similar growth is expected in the current quarter.
Apple’s Other Products category, which includes the Apple Watch, AirPods, and Vision Pro headset, saw a slight decline to $9.04 billion.
Challenges in China and Global Outlook
One notable challenge for Apple was a 4% revenue decline in Greater China, which includes Hong Kong and Taiwan, totaling $14.5 billion. Despite this, Cook expressed optimism that China will return to growth in the December quarter, driven by the strong reception of the iPhone 17 lineup.
Globally, Apple remains on an upward trajectory, with growth in North America and Europe helping offset regional slowdowns. The company’s broad product ecosystem and loyal customer base continue to anchor its financial stability.
Siri, AI, and Future Innovations
Tim Cook reaffirmed Apple’s commitment to advancing artificial intelligence. The company plans to launch an updated version of Siri in 2026 and deepen its partnerships with AI companies such as OpenAI, whose ChatGPT is now integrated into Apple Intelligence.
“Our intention is to integrate with more partners over time,” Cook said, emphasizing Apple’s ongoing AI evolution.
Tariffs and Margins
Apple continues to face tariff-related challenges but has opted not to raise consumer prices. CFO Kevan Parekh revealed that Apple incurred $1.1 billion in tariff costs during the September quarter, with $1.4 billion expected in the December quarter. Despite these costs, Apple maintained a strong gross margin of 47.2%, outperforming the 46.4% expected by analysts.
Cook noted, “We held the pricing that we would have done without any tariffs, and we’re just absorbing the tariffs in gross margin.”
What This Means for Investors
Apple’s consistent growth, strong product lineup, and expanding services business indicate continued long-term potential. With iPhone 17 demand soaring and record-breaking December revenue on the horizon, analysts consider this a major bullish signal for investors.
Wedbush Securities’ Dan Ives called this a “pound-the-table moment” for Apple shareholders, emphasizing that Apple’s product cycle momentum, combined with its growing AI ecosystem, makes it one of the most resilient and profitable tech companies heading into 2026.
Conclusion
Apple’s fourth-quarter results demonstrate its unwavering strength in innovation and market leadership. The company’s guidance for the December quarter — fueled by iPhone 17 demand, robust services growth, and record profit margins — underscores its dominance in the global tech industry.
As Apple continues to evolve with new AI-driven initiatives and next-generation products, it’s clear that the company remains well-positioned to sustain its growth and deliver value to both customers and investors.
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