Apple CFO Suggests September Financial Quarter May Suffer Due to Ending Multi-Billion-Dollar Deal with Google

In its Q3 2025 earnings report, Apple announced an impressive profit of $23.4 billion, derived from a substantial revenue of $94.04 billion for the quarter. Notably, this financial success was significantly bolstered by a lucrative partnership with Google, which pays Apple between $18 billion and $20 billion to maintain its search engine as the default option across various devices. This collaboration has proven to be a vital revenue stream, contributing approximately 9% of Apple’s gross profits during certain financial periods. However, with antitrust regulators potentially disrupting this arrangement, Apple’s Chief Financial Officer has issued a warning that the upcoming Q4 results could be adversely impacted.

Apple Acknowledges Potential Revenue Loss from Google

During the recent earnings call, CFO Kevan Parekh highlighted the risks associated with their agreement with Google. His remarks, noted by Six Colors, indicated that losing this significant revenue source could affect Apple’s future performance. Previous court documents showed that Google has historically compensated Apple approximately $20 billion to keep its search capabilities as the default across its flagship products, including iPhones, iPads, and Macs.

“As we move into the September quarter, I’d like to review our outlook, which includes the types of forward-looking information that Suhasini referred to. Importantly, the color we’re providing assumes that the global tariff rates, policies, and application remain in effect as of this call, the global macroeconomic outlook does not worsen from today, and the current revenue-share agreement with Google continues.”

In August 2024, a U. S.federal judge ruled that the multi-billion-dollar agreement between Apple and Google potentially violates antitrust laws. While the arrangement remains intact for now, it is anticipated that should the courts decide against the companies, Google may file an appeal. These legal battles could extend over several years, during which Apple would continue to benefit financially from their collaboration.

Despite the ongoing litigation, CEO Tim Cook has refrained from speculating about the outcome of the court decisions. This cautious approach suggests a desire for stakeholders to remain focused on Apple’s recent successes, including their strong quarterly performance.

For further details, visit: Six Colors

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