Apple today announced financial results for its fiscal 2025 second quarter ended March 29, 2025, reporting quarterly revenue of $95.4 billion, a 5% increase year over year, and diluted earnings per share (EPS) of $1.65, up 8% year over year. Despite beating revenue and EPS expectations, the company’s Services segment slightly underperformed, contributing to a 2% decline in $AAPL stock price during after-hours trading, with shares trading at approximately $209.04, down from the closing price of $213.32.
Key Financial Highlights
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Revenue: $95.4 billion, up 5% YoY, surpassing LSEG estimates of $94.66 billion.
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EPS: $1.65, up 8% YoY, beating LSEG estimates of $1.63.
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iPhone Revenue: $46.84 billion, above StreetAccount estimates of $45.84 billion.
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Mac Revenue: $7.95 billion, exceeding StreetAccount estimates of $7.77 billion.
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iPad Revenue: $6.4 billion, topping StreetAccount estimates of $6.20 billion.
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Wearables, Home, and Accessories Revenue: $7.52 billion, below StreetAccount estimates of $7.95 billion.
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Services Revenue: $26.65 billion, slightly missing StreetAccount estimates of $26.70 billion.
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Gross Margin: 41.7%, below StreetAccount expectations of 47.1%.
“Today Apple is reporting strong quarterly results, including double-digit growth in Services,” said Tim Cook, Apple’s CEO. “We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we’ve cut our carbon emissions by 60 percent over the past decade.”
CFO Kevan Parekh highlighted the company’s financial discipline, stating, “Our March quarter business performance drove EPS growth of 8 percent and $24 billion in operating cash flow, allowing us to return $29 billion to shareholders. Thanks to our high levels of customer loyalty and satisfaction, our installed base of active devices once again reached a new all-time high across all product categories and geographic segments.”
The Services segment, which includes Apple Music, iCloud, and the App Store, reported $26.65 billion in revenue, falling just short of StreetAccount’s $26.70 billion forecast. While Services achieved double-digit growth year over year, the slight miss raised concerns among investors, as the segment is a high-margin driver of Apple’s profitability. This shortfall contributed to the 2% drop in $AAPL stock price in after-hours trading.
Apple’s board of directors declared a cash dividend of $0.26 per share, a 4% increase, payable on May 15, 2025, to shareholders of record as of May 12, 2025. Additionally, the board authorized a new $100 billion share repurchase program, signaling confidence in the company’s long-term growth prospects.
The after-hours decline of 2% reflects investor disappointment with the Services miss and lower-than-expected gross margin, despite strong performance in hardware categories like iPhone, Mac, and iPad.
The companies Q2-25 financial results conference call will take place at 2:00 p.m. PT on May 1, 2025, accessible at apple.com/investor/earnings-call. The webcast will be available for replay for approximately two weeks. Investors will be listening closely for commentary on the Services segment and guidance for the upcoming quarter, particularly regarding iPhone 16e demand and macroeconomic trends.
