Apple immediately announced monetary outcomes for its third fiscal quarter of 2025, which corresponds to the second calendar quarter of the yr.
For the quarter, Apple posted income of $94.0 billion and web quarterly revenue of $23.4 billion, or $1.57 per diluted share, in comparison with income of $85.8 billion and web quarterly revenue of $21.4 billion, or $1.40 per diluted share, within the year-ago quarter.
Apple set new June quarter information for complete income, in addition to iPhone income and earnings per share. The corporate additionally set an all-time document for Providers income.
Gross margin for the quarter was 46.5 %, in comparison with 46.3 % within the year-ago quarter. Apple additionally declared a quarterly dividend fee of $0.26 per share, payable on August 14 to shareholders of document as of August 11.
“At the moment Apple is proud to report a June quarter income document with double-digit development in iPhone, Mac and Providers and development around the globe, in each geographic section,” stated Tim Cook dinner, Apple’s CEO. “At WWDC25, we have been excited to introduce a good looking new software program design that extends throughout all of our platforms, and we introduced much more nice Apple Intelligence options.”
As has been the case for over 5 years now, Apple is as soon as once more not issuing steering for the present quarter ending in September.
Apple will provide live streaming of its fiscal Q3 2025 monetary outcomes convention name at 2:00 p.m. Pacific, and MacRumors will replace this story with protection of the convention name highlights.
Convention name recap forward…
1:40 pm: Apple noticed robust year-over-year development in iPhone (13.5%), Mac (14.8%), and Providers (13.3%) income, whereas iPad (–8.1%) and Wearables/Residence (–8.6%) noticed modest declines.
1:41 pm: Apple’s share worth is up 2% in after-hours buying and selling following the earnings launch. Shares have been down 0.7% in common buying and selling immediately.
1:42 pm: “We’re very happy with our document enterprise efficiency for the June quarter, which generated EPS development of 12 %,” stated Kevan Parekh, Apple’s CFO. “Our put in base of energetic units additionally reached a brand new all-time excessive throughout all product classes and geographic segments, because of our very excessive ranges of buyer satisfaction and loyalty.”
1:56 pm: Apple’s quarterly earnings convention name ought to start in roughly 5 minutes. It can probably characteristic Apple CEO Tim Cook and CFO Kevan Parekh giving statements and taking questions from monetary analysts.
1:59 pm: After closing at $207.57, AAPL spiked almost as excessive as $214 earlier than giving again some and is now hovering round $210.
2:01 pm: The decision is starting, with warnings about forward-looking statements from Suhasini Chandramouli, Apple’s head of investor relations.
2:03 pm: Tim Cook dinner is on, saying the document June quarter was “higher than we anticipated” with gross sales development up 10% and earnings per share up 12% yr over yr. “We had June quarter income information in additional than two dozen nations and areas.” There have been June quarter information of iPhone gross sales, up 13% yr over yr, and double digit development in rising markets together with Center East, South Asia and Brazil. Mac gross sales have been up 15%, and document Providers income up 13%.
2:04 pm: Now he is reminding everybody concerning the introductions at WWDC, together with the UI redesign with Liquid Glass. “We won’t await customers in all places to expertise it this fall.”
2:05 pm: He is additionally reminding about new capabilities coming to Apple Intelligence, together with Stay Translation and Exercise Buddy, in addition to assist for brand spanking new languages. iOS 26, MacOS 26 and iPadOS 26 are “by far the preferred developer betas we have had.”
2:05 pm: “We see AI as some of the profound applied sciences of our lifetime. We’re embedding it throughout our units and platforms, and throughout the nation. We’re additionally considerably rising our investments.”
2:05 pm: “We’re integrating AI options throughout our platforms in a approach that’s deeply private, personal and seamless, proper the place customers want them.”
2:06 pm: “We’re making good progress on a extra personalised Siri, and as we have stated earlier than, we count on to launch these options subsequent yr.”
2:06 pm: “Apple silicon is on the coronary heart of all of those experiences, enabling highly effective Apple intelligence options to run instantly on machine. For extra superior duties. our servers, additionally powered by Apple silicon, ship even larger capabilities whereas preserving person privateness, by means of our personal cloud compute structure.”
2:06 pm: “We’re excited concerning the work we’re doing on this area, and it is extremely rewarding to see the robust momentum constructing.”
2:07 pm: iPhone income was $44.6 billion, up 13% from a yr in the past, a June quarter document for upgraders. “This robust, broad-based efficiency was pushed by the unimaginable recognition of the iPhone 16 household, up robust double-digits yr over yr as in comparison with the 15 household.”
Apple additionally shipped the three billionth iPhone because it launched in 2007.
2:08 pm: In Mac, income was $8 billion, up 15% yr over yr, pushed by the energy of the brand new M4 MacBook Air. There was a June quarter document for upgraders, and nice efficiency in rising markets. The MacBook Air is the world’s hottest laptop computer.
2:09 pm: “Mac customers throughout our complete lineup are going to search out pleasant new methods to remain related and productive” in macOS Tahoe 26.
2:10 pm: iPad income was $6.6 billion, with the lineup “bringing collectively energy and portability like by no means earlier than.” iPadOS 26 would be the greatest iPad software program replace ever.
2:11 pm: Wearables, Residence and Equipment income was $7.4 billion with a June quarter document for upgraders to Apple Watch. The ten-year anniversary of Apple Watch is right here, with updates coming to the Exercise App and Sensible Stack, in addition to a “recent, new design.” Updates are coming to Apple Vision Pro with VisionOS 26, too. Options for the AirPods lineup “will unlock much more potentialities” together with utilizing AirPods as a digicam distant.
2:12 pm: “Since we first launched our listening to wholesome options with AirPods Pro 2, I’ve obtained notes from people who find themselves delighted to have the ability to join mroe deeply with family members.”
2:12 pm: Providers income for June was $27.4 billion, up 13% yr over yr and an all-time document. AppleTV obtained 81 nominations for the Emmy Awards.
2:13 pm: Apple TV+ has earned greater than 2,700 award nominations and 585 wins “on the energy of the highest-rated authentic content material of any streaming community.” TV+ viewership is up robust double-digits yr over yr. In June, F1 was launched in theaters, “one of many summer time’s most unforgettable blockbusters.” We celebrated an enormous anniversary with 10 years of Apple Music. “We launched an all-new studio area in Los Angeles for artists to create content material and join with followers.” Later this yr, customers get auto-mix and lyrics translation.
2:14 pm: The App Store continues to be the “easiest place to find the ad click rate apps from builders around the globe in a secure and trusted approach” and income grew double-digits yr over yr.
2:14 pm: Apple On-line Retailer simply launched in Saudi Arabia, and new shops are coming to the UAE and India later this yr, with a brand new retailer opening in Osaka, Japan.
2:15 pm: “Throughout all the things we do at Apple, we present up by main with our values. We really feel strongly that the advantages of know-how must be shared by everybody. That is why we make know-how for everybody. In Might, to mark International Accessibility Consciousness Day, we introduced… magnifier for Mac, a brand new Braille expertise, and accessibility reader, a brand new system large studying mode to make it simpler to know content material.”
2:16 pm: Apple can be engaged on recycling uncommon earth supplies and investing in America and elsewhere, with $500 billion in funding within the US over the following 4 years.
2:17 pm: “The scenario round tariffs is evolving, so let me present some coloration there. For the June quarter, we incurred roughly $800 million of tariff associated prices. For the September quarter, assuming the present world tariff charges, insurance policies and purposes don’t change for the stability of the quarter and no new tariffs are added, we estimate the impression so as to add about $1.1 billion to our prices.”
2:17 pm: CFO Kevan Parekh is on now, giving extra info on the financials.
2:18 pm: “Our put in base of energetic units grew to an all-time excessive throughout all product classes and geographic segments.”
Providers income was $27.4 billion, an all-time document. Firm gross margin was up 46.5%, on the excessive finish of the steering vary, down 60 foundation factors sequentially, primarily pushed by $800 million in tariff-related prices. Product gross margin was 34.5%, Providers gross margin was 75.6%.
2:19 pm: The iPhone energetic set up base grew to an all-time excessive, and a June quarter document for upgraders. A current survey confirmed the iPhone was the top-selling mannequin within the US, city China, the UK, Australia and Japan within the quarter. “We proceed to see very excessive ranges of buyer satisfaction within the US, at 98%, as measured by 451 Analysis.”
2:20 pm: Mac income was pushed by continued energy throughout the portfolio, rising in each geographic section, together with double-digit development in Europe, China and the remainder of Asia Pacific. US satisfaction is 97%.
2:20 pm: iPad income was down 8%, an anticipated decline based mostly on the troublesome evaluate towards the launch of iPad Air and iPad Pro within the year-ago quarter. Buyer satisfaction is 98% within the US.
2:21 pm: Wearables, Residence and Equipment income was down 9% yr over yr, given a unique evaluate on equipment as a result of prior yr’s iPad launches. Apple Watch reached a brand new all-time excessive with greater than half of consumers new to the product. Apple Watch satisfaction within the US is 97%.
2:22 pm: Providers income was up 13%, with all-time income information on cloud providers pushed by yr over yr development of iCloud-paying accounts. Development of the put in base of energetic units “provides us nice alternatives for the long run buyer engagement throughout our providers choices.”
2:23 pm: Apple ended the quarter with $133 billion in money and marketable securities. $5.7 billion debt maturities, issuing $4.5 billion of recent debt and $4 billion in industrial paper. $102 billion in complete debt, with web money of $31 billion after returning $27 billion to shareholders by means of $3.9 billion in dividends and $21 billion in open market repurchases of 104 million Apple shares.
2:24 pm: Assuming tariffs and world macroeconomic outlook doesn’t worsen, Apple rexpects complete firm income to develop mid-to-high single digits yr over yr, Providers to develop at a year-over-year price much like the June quarter. Gross margin between 46% and 47%, and working bills between $15.6 and $15.8 billion, and a tax price round 17%. A money dividend of $0.26 per share will probably be payable on August 14.
2:25 pm: The Q&A section is now starting.
2:28 pm: Q: On CapEx, it is up notably year-to-date, are you able to touch upon capital spending plans this yr and subsequent, and what’s driving that development? Is it AI associated or provide chain diversification?
A: It is a mixture of things. A big issue is AI, we’re investing in personal cloud compute together with our first-party information facilities. We even have a hybrid technique utilizing third-parties to speculate in addition to our personal. We even have investments and tooling, however a major driver of development is the AI-related investments.
Q: On improve charges, it is encouraging to see the information on iPhone, Mac and Watch — are you seeing energy in improve charges or is it the rising put in base? What made upgrades compelling this yr? Tariffs? Apple Intelligence?
A: Should you take a look at iPhone, the 16 household grew double-digits over the 15 household, so we set an improve document. I believe it is instantly a end result on the energy of the product. Mac instantly set upgrades and we proceed to see a transfer to Apple Silicon. The efficiency of Apple Silicon is taking part in a key function. Should you’re questioning about pull-forward, we might estimate the pull-forward of demand into April, particularly, to be about 1 level of the ten factors by way of folks shopping for over discussions about tariffs.
2:29 pm: Q: Shortly after March earnings, there have been some studies on searches on Safari declining in April for the primary time in twenty years. It does not appear to point that any developments performed out by means of the June quarter, are you able to give some coloration on how the quarter performed out and in the event you believed Apple’s merchandise as search entry factors are dropping strategic worth as AI grows or dropping strategic worth?
A: I believe they proceed to be very invaluable. Client behaviors are evolving and we’re monitoring it very intently.
2:31 pm: Q: Are you able to elaborate a bit on what you are seeing in China? A few of the promotions are tailwinds, however how do you characterize among the demand curiosity within the iPHone 16 and are the developments within the June quarter one-time or distinctive?
A: We did develop in Better China by 4% throughout the quarter over the earlier quarter, pushed largely by an acceleration on iPhone, though we additionally had substantial development on the Mac yr over yr. The federal government has sure subsidies that have an effect on a few of our merchandise however not all of them, I believe that had some impact. It was the primary full quarter of the subsidy taking part in out. It lower in throughout a portion of the earlier quarter.
The set up base hit a document excessive in Better China and we set an all-time document for the iPhone set up base. iPhone upgraders set a document for the June quarter, and… iPhone had the highest three fashions in City China which is extraordinary. Different merchandise, Mac, iPad and Watch, nearly all of prospects of individuals shopping for in China mainland are new to the product. A lot of good issues there. The opposite factor I might level out, MacBook Air was the top-selling laptop computer mannequin in all of China, and Mac Mini was the top-selling desktop mannequin in all of China. General, it is a very optimistic quarter.
2:32 pm: AAPL is up over $213 throughout after hours buying and selling, with a robust transfer upward throughout the name.
2:34 pm: Q: Asking about Siri and the general AI funding. How is your confidence in the direction of that launching subsequent yr? Is there something that is being performed internally to extend that confidence?
A: We’re making good progress in the direction of a more-personalized Siri, and we’re making good progress to launching that subsequent yr. Our focus is on placing AI options throughout the platform which might be deeply private, personal and seamlessly integreated. We’re considerably rising our funding, we did throughout the June quarter and we are going to once more within the September quarter. I am not placing particular numbers behind that at this level, however you’ll be able to inform within the steering that issues are shifting up. We’re placing all of our vitality behind it.
When it comes to different merchandise, I do not need to touch upon particular different merchandise, however we have now an thrilling roadmap forward. I couldn’t be extra enthusiastic about it.
2:36 pm: Q: On the general income information, I admire that you simply information the perfect you’ll be able to see it. However why would it not decelerate if providers is staying the identical, the place’s that conservatism? Foreign money must be simply as favorable if no more favorable?
A: From Q3 to mid-to-high single digits, have in mind two parts. First, the impact of tariff pull-ahead in demand, and the September quarter of the yr in the past, we had the full-quarter impression of the brand new iPad launches versus this yr. From Q3 to This autumn, I might say international trade is a minor tailwind so not a significant factor.
2:37 pm: Q: You stated related development in Providers and that is predicated on Google Funds persevering with, is there any method to dimensionalize or speak about choices if the funds weren’t allowed ultimately.
A: I do not actually need to speculate on the courtroom ruling and the way they might rule and what we might do as a consequence of it.
2:38 pm: Q: At a excessive stage, whenever you take a look at among the perceived fears of recent type components and methods to work together with units, there’s some fear that there might be a world right here dependence on display based mostly units considerably diminishes. I am curious your ideas in the event you assume that can occur and the speed and tempo at how Apple is getting ready for that?
A: When you consider all of the issues an iPhone can do, from connecting folks to bringing app and sport experiences to life, to taking photographs and movies to serving to customers discover the world and conduct their monetary lives and pay for issues and a lot extra. You understand, it is it is troublesome to see a world the place iPhone’s not residing in it. That does not imply we’re not occupied with different issues as properly. Units are more likely to be complimentary, not substitution.
2:40 pm: Q: The tariff hit of $1.1 billion within the September quarter, are you able to speak about assuming tariffs remaining at these ranges or evolving beneath Part 232, how do you offset this headwind into your P&L and when do you determine to execute on the levers to offset this headwind versus your backside line?
A: We’re simply estimating the price of it and it is up quarter over quarter, as a result of our quantity is up and there was some build-ahead within the earlier quarter. That is the first purpose. When it comes to mitigation, we attempt to optimize our provide chain and clearly we attempt to optimize our provide chain and finally we’ll do extra in the USA. We have dedicated $500 billion within the US over the following 4 years, and we have already began constructing chips in Arizona and semiconductors throughout 12 states and 24 factories and plenty of different issues within the works. We proceed to discover these items and search for extra that we are able to do, which finally is the target.
2:42 pm: Q: On Providers development, 13% is extraordinarily spectacular. DO you see any impression from the Epic case and the steering dynamics?
A: Very robust providers income, it was very broad-based and noticed energy in rising markets. We solely simply made the change required by the courtroom within the June quarter, we do not present lots of element however we simply had double-digit development on the US App Retailer and we’ll proceed to innovate and be certain that App Retailer delivers the perfect expertise for customers and stays an excellent enterprise alternative for builders.
2:46 pm: Q: On provide chain, you talked about focusing manufacturing and meeting to India, needed to get an replace on the way you’re occupied with that, and with India tariffs being increased than anybody anticipated. You talked about US investments, however what about China versus the remainder of Southeast Asia and India going ahead? Additionally, the place did demand on iPhone come from? That is stronger in June than regular, so what drove that? Promotions or one thing else?
A: When it comes to tariffs and nation of origin, one factor I might say is that the overwhelming majority of our merchandise are lined beneath the Part 232 investigation. At the moment, or final quarter, the majority of the tariffs that we paid have been the IEEPA tariffs that hit early within the yr associated to China. That is only a reminder of the place issues are and what we assumed as we calculated the projection of $1.1 billion that is in our outlook coloration. When it comes to the nation of origin, it is the identical as I referenced final quarter, there hasn’t been a change to that. The overwhelming majority of the iPhones offered within the US, or the bulk, have a rustic of origin of India. The overwhelming majority of the opposite merchandise, Mac and iPad and Watch have a rustic of origin of Vietnam which might be offered within the US. Nonetheless, the merchandise for different worldwide nations, the overwhelming majority of them are coming from China. That hopefully provides you a taste of the place issues are. I might stress once more that we do loads on this nation, in the USA, and we have dedicated $500 billion and we’re at all times seeking to do extra. You might sort of see that in the newest bulletins, whether or not MP Supplies or our manufacturing academy that we’re standing up in Detroit. We’ll be doing extra on this nation, and that is on high of getting roughly 19 billion chips popping out of the US now. We’ll do extra. Glass for iPhone, the FaceID module, there’s a great deal of various things performed in the USA.
On iPhone, as Tim outlined, we predict the robust improve efficiency was on the energy of the product lineup. The iPhone 16 household has performed extremely properly. We just lately launched the 16e which continued to impression the success of the iPhone 16 lineup.
2:48 pm: Q: Was there any pull ahead on channel stock associated to seasonal developments?
A: From the start of the quarter to the top of the quarter, we lowered it, and it ended in the direction of the low finish of our focused vary. We did see some apparent indicators of pull forward in April, that was a few 1 level impression of the ten level complete firm stage of development. That was the restricted impression that we imagine we noticed within the quarter.
2:49 pm: Q: Inquisitive about your ideas on AI for edge units. Some folks assume that LLM might be a commodity sooner or later. Do you assume a LLM might develop into part of your iOS, and what is the evolution of edge units and can the smartphone be the selection of machine?
A: The best way that we take a look at AI is that it is some of the profound applied sciences of our lifetime, and I believe it’ll have an effect on all units in a major approach, what items of the chain are commoditized and never commoditized? I would not need to to actually speak about immediately, as a result of that provides away some issues on our technique.
2:50 pm: Q: Referring to the pull forward being about 1 share level, do you could have something to share in what underlined that estimate? Was it on iPhone or throughout the board, primarily within the US or a number of areas, any coloration there could be useful for a way you get to that assumption.
A: It was principally on iPhone and Mac, and it was fairly apparent proof of it. Uncommon shopping for patterns there, largely occurred in April in the direction of the start of the quarter. It was actually, we imagine, largely in the USA.
2:52 pm: Q: On tariffs, round $800 million (you estimated $900 million), you highlighted there have been some distinctive components within the quarter. Was there something distinctive in September or December quarter that might uniquely have an effect on these quarters as you spotlight that from quarter to quarter there could be distinctive components?
A: I might watch out about projecting based mostly on the numbers from Q2 and Q3 as a result of, one, we’re unsure of what the charges will probably be, so the charges might change. Two, in notably final quarter, we had some build-ahead stock that we had throughout the firm and inside our provide chain. These two are slightly distinctive. Additionally, as you understand from following us for thus lengthy, Q1 is mostly a higher-volume quarter. The tariffs are presently fairly linear with quantity.
2:54 pm: Q: After we take into consideration foreign money impression, how a lot of a profit was foreign money this quarter and, throughout the enterprise in Providers, how a lot foreign money profit must be embedded within the steering in September? CapEx is clearly shifting increased, and I do know you are not guiding to that quantity, however qualitatively, as you lean in additional on AI, ought to we see CapEx begin to transfer appreciably increased?
A: For Q3, we actually had no impression from international trade on income development and gross margin, there’s nearly no impression from FX. From June to September, there is a very small tailwind from a FX standpoint on each income and gross margin. In your second query, on CapEx, we talked about how we’re rising our investments in AI, you may proceed to see our CapEx develop, you will not see exponential development, and that is a perform of funding in AI and different objects that fall into that class, together with amenities and retail. We even have a hybrid funding mannequin the place we have now third events make investments, and we additionally put money into our personal first celebration infrastructure.
2:56 pm: Q: You confirmed spectacular updates on Imaginative and prescient Professional with Persona and different methods to create content material. Different firms are seeing robust momentum on AI glasses. Are you continue to specializing in enterprise or broadening the use circumstances and tying it to extra of your units? Any ideas on Imaginative and prescient Professional?
A: Thanks for bringing it up. I used to be thrilled with the discharge from the group on VisionOS 26. It consists of many issues like particular widgets, personas, and new enterprise APIs for firms as properly. We’re seeing these issues resonate out with CAE and different prospects, so we proceed to be very centered on it and I do not need to get into the roadmap on it, and that is an space we actually imagine in.
2:57 pm: Q: You have not performed massive M&A traditionally, do you assume you want to speed up your AI street map or simply hold the natural focus?
A: We have acquired round 7 firms, from all walks of life, not simply AI. We’re doing one each a number of weeks. We’re very open to M&A that accelerates our roadmap. We aren’t caught on a sure dimension firm, though those we have now acquired up to now this yr are small in nature. We principally ask ourselves whether or not an organization may also help us speed up our roadmap. In the event that they do, we’re , however we do not have something to share particularly to that.
2:57 pm: The decision has concluded.