Apple has posted quarterly earnings that beat Wall Street expectations, fueled by strong demand for iPhones and a continued surge in its services division, capping the company’s best financial year ever, with total annual revenue hitting $416 billion, up 6% from 2024.
The tech giant reported net income of $27.46 billion, or $1.85 per share, for the fourth quarter of its fiscal year, compared with $14.3 billion, or $0.94 per share, a year earlier. Analysts had forecasted earnings of around $1.77 per share.
Apple CEO Tim Cook said in a statement:
“Apple is proud to report a record September quarter with $102.5 billion in revenue, including an all-time record for Services and record iPhone revenue for the period.”
The board also announced a cash dividend of $0.26 per share.
iPhone and Services Lead the Way
While total iPhone sales slightly missed market expectations, revenue still climbed 6% year-over-year to $49 billion, bolstered by the successful launch of the iPhone 17 lineup in September.
Apple’s Services division, which includes digital content, subscriptions, and cloud offerings, was a standout performer, generating $28.8 billion, nearly $3 billion higher than last year’s comparable quarter. Analysts described the segment’s performance as “the highlight of the report.”
Cook emphasized that the results mark “an exceptional year for Apple,” projecting that the current fiscal quarter ending in December will be the strongest in the company’s history.
Apple Deepens Investment in Artificial Intelligence
During the earnings call, Cook underscored Apple’s growing focus on integrating artificial intelligence (AI) into its products and services to remain competitive in the rapidly evolving tech landscape.
He highlighted the company’s “Apple Intelligence” suite of features, including real-time translation during iPhone calls and a more personalized Siri assistant, expected to debut next year. Cook added that Apple’s in-house “Apple Silicon” chips are “at the heart of everything we do,” enabling advanced AI performance across devices.
China Challenges and Outlook
Cook acknowledged that sales in China, including Hong Kong and Taiwan, fell 4% to $14.5 billion, partly due to supply constraints following the high demand for the iPhone 16 and 17 models. However, he expressed confidence that sales would rebound in the current quarter as supply improves.
In an interview with CNBC, Cook said Apple expects revenue growth between 10% and 12% year-over-year in the December quarter, supported by “exceptional” early demand for the iPhone 17.
Analysts estimate next-quarter sales at $132.3 billion, but Apple’s guidance suggests a stronger figure near $137.97 billion, with earnings of $2.53 per share.
Profit Margins and Other Highlights
Chief Financial Officer Kevan Parekh noted that Apple’s gross margin exceeded expectations despite facing tariff-related costs of around $1.1 billion this quarter and nearly $2 billion over the past two quarters. He added that maintaining stable iPhone pricing despite higher production costs raised short-term margin concerns but reinforced long-term competitiveness.
Other key figures include:
- Net income: $27.46 billion for the quarter, up from $14.29 billion last year.
- Annual revenue: $416 billion, up 6% year-over-year.
- Wearables and other products (Apple Watch, AirPods, Vision Pro): $9.04 billion in sales.
- Mac sales: Up 13% to $8.72 billion, boosted by strong MacBook Air demand after the price was reduced to $999.
