Apple Q4 2025 Earnings Report: Revenue Decline in iPhones and iPads

Apple Q4 2025 Earnings Report: Revenue Decline in iPhones and iPads

Apple has recently unveiled its financial results for the fourth quarter of its fiscal year 2025, revealing an impressive total revenue of $102.47 billion. This figure comprises $49.03 billion in iPhone sales and $28.75 billion generated from its services segment, culminating in a net profit of $27.47 billion.

Apple Fiscal Q4 2025 Earnings: Growth in iPhones and Services

The following are critical insights from Apple’s latest quarterly financial statement:

  1. Total Revenue: $102.47 billion, reflecting a 7.9% year-over-year increase compared to $94.93 billion in Q4 2024.
    • iPhone Sales: $49.03 billion, up 6.1% YoY from $46.22 billion in Q4 2024.
    • Mac Sales: $8.73 billion, representing a 12.8% growth from $7.74 billion last year.
    • iPad Sales: $6.95 billion, maintaining a flat performance YoY.
    • Wearables, Home, and Accessories: $9.01 billion, slightly down 0.3% compared to $9.04 billion in Q4 2024.
    • Services Revenue: $28.75 billion, marking a robust 15.1% increase from $24.97 billion in Q4 2024.
  2. Gross Margin: $48.34 billion
  3. Research & Development Expenses: $8.87 billion
  4. Net Income: $27.47 billion
  5. Cash Reserves: $35.93 billion

Throughout the entirety of fiscal year 2025, Apple achieved a substantial total revenue of $416.16 billion, equating to an increase of 6.42% from the previous year’s revenue of $391.04 billion.

In detail, during this fiscal year, Apple earned $307 billion from its product segment and $109.2 billion from services—a year-over-year growth of 4.11% and 13.55% respectively.

Market Commentary:

Apple’s fiscal Q4 2025 sales exceeded the analyst consensus of $102.24 billion, with an earnings per share (EPS) of $1.85 surpassing estimates of $1.77. However, iPhone revenue fell short of expectations, coming in at $49.03 billion versus the anticipated $50.19 billion.

Furthermore, iPad revenue did not meet forecasts, reporting $6.95 billion against the projected $6.98 billion. Conversely, Mac sales slightly exceeded expectations by reaching $8.73 billion versus a consensus of $8.59 billion. The Wearables, Home, and Accessories segment also outperformed predictions with reported sales of $9.01 billion, surpassing the expected $8.49 billion.

Importantly, the services segment delivered a significant beat relative to expectations, reporting $28.75 billion against an estimated $28.17 billion.

Insights from the Earnings Call:

  1. A new version of Siri is set to debut in 2026.
  2. Tim Cook expressed optimism regarding Apple’s performance in the upcoming December quarter.
  3. Apple faced a $1.1 billion impact from tariffs in Q4 2025.

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