At a Glance
- Apple surpassed Wall Street’s fiscal fourth-quarter revenue and earnings expectations, reporting $102.47 billion in revenue and $1.85 per share.
- Sales in Greater China saw a 4% year-over-year decline, totaling $14.49 billion.
- iPhone revenue reached $49.03 billion, a 6% increase year-over-year, though it missed analyst forecasts, attributed by CEO Tim Cook to supply constraints.
- The Mac and Services segments demonstrated robust growth, with Mac revenue up 13% and Services revenue up 15%.
- Apple projects record revenue for the December quarter, anticipating 10–12% year-over-year growth.
Apple Exceeds Q4 Expectations Amidst Regional Dip
Apple announced strong financial results for its fiscal fourth quarter, exceeding Wall Street’s projections with a total revenue of $102.47 billion, marking an 8% increase compared to the same period last year. The company also reported earnings per share of $1.85, surpassing the anticipated $1.77.
Conversely, the Greater China region, which includes mainland China, Hong Kong, and Taiwan, experienced a 4% year-over-year decrease in sales, amounting to $14.49 billion.
Despite the solid overall financial performance, Apple’s stock saw minimal movement in after-hours trading. This subdued reaction was largely attributed to the performance of the iPhone, which, while showing a 6% year-over-year increase to $49.03 billion, did not meet the $50.19 billion predicted by analysts. CEO Tim Cook cited supply chain challenges as the primary reason for this shortfall.
“Currently, we’re supply constrained on several models of the iPhone 17,” Tim Cook stated.
Performance Across Product Segments
The Mac division reported a strong quarter, generating $8.73 billion in revenue, slightly exceeding the $8.59 billion estimate and marking a 13% year-over-year increase. Tim Cook attributed this growth to high demand for the MacBook Air, particularly following its recent refresh and price adjustment.
💡 The iPad segment fell slightly short of expectations, bringing in $6.95 billion against a target of $6.98 billion. This slight miss is likely due to the absence of new iPad releases during the quarter; the new iPad Pro featuring the M5 chip was launched in October and its sales impact will be reflected in the first fiscal quarter of 2026.
The Other Products category, which encompasses devices such as AirPods, Apple Watch, and Vision Pro, generated $9.01 billion. This figure surpassed the $8.49 billion forecast but represented a slight decline from previous reporting periods.
⚡ The Services segment emerged as a key driver of growth, achieving $28.75 billion in revenue, significantly surpassing the $28.17 billion expectation. This category includes revenue generated from the App Store, Apple Music, iCloud, AppleCare, payment services, and Google search licensing agreements. Services revenue saw a substantial 15% increase year-over-year, with Cook expressing strong confidence in its continued trajectory and noting accelerating growth within its various components.
“It was a run of the table,” Tim Cook remarked about the Services segment’s performance.
Outlook for the December Quarter
Tim Cook expressed optimism regarding a return to growth in the China region for the current quarter.
“We expect China to return to growth this quarter because of the reception of the iPhone there, or the iPhone 17 family,” he said.
Apple’s guidance for the upcoming December quarter is particularly robust. The company anticipates revenue to grow between 10% and 12% year-over-year, potentially reaching approximately $137.97 billion, which would establish a new company record. Analysts had previously projected $132.31 billion in revenue and $2.53 earnings per share for the period.
“We expect total company revenue to grow by 10 to 12% year over year, we expect iPhone revenue to grow double digits, year over year, and we expect that that would make the December quarter the best ever in the history of the company,” Tim Cook stated.
He highlighted early positive indicators for the iPhone 17 lineup, including a notable year-on-year increase in store traffic, suggesting strong consumer enthusiasm leading into the critical holiday shopping season.
Future Innovations and Financial Details
💡 Tim Cook also confirmed that Siri is slated for a significant update next year, with further artificial intelligence integrations planned, including the incorporation of OpenAI’s ChatGPT into Apple Intelligence.
“Our intention is to integrate with more people over time,” he added.
Regarding tariffs, Cook indicated that Apple absorbed the associated costs to maintain its product pricing, which positively impacted its gross margin.
Apple’s reported gross margin stood at 47.2%, an improvement from the projected 46.4%. Net income saw a substantial rise to $27.46 billion, compared to $14.29 billion in the prior year, largely due to the absence of a one-time tax charge recorded in the previous year.
For the full fiscal year 2025, Apple reported revenue of $416 billion, representing a 6% increase from fiscal year 2024. The 8% year-over-year revenue growth observed in the September quarter was a significant contributor to this annual gain.
Final Thoughts
Apple’s fiscal fourth quarter showcased strong overall performance, surpassing revenue and earnings expectations despite a noticeable slowdown in its China region. Although iPhone sales narrowly missed analyst predictions due to supply constraints, the robust performance of the Mac and Services divisions highlighted significant growth. The company has provided an optimistic outlook for the December quarter, forecasting record-breaking revenue and continued expansion fueled by new product introductions and anticipated AI advancements.