Apple reported its fiscal second-quarter (Q2) earnings for 2025, covering the period ending March 2025. The company posted revenue of $95.36 billion, marking a 5% increase year-over-year, and net income of $24.78 billion (with earnings of $1.65 per share). These figures slightly surpassed analyst expectations, which had projected $94.68 billion in revenue and $1.63 per share in earnings.
The services division achieved a record revenue of $26.65 billion, reflecting a 12% year-over-year growth. This segment includes offerings like Apple Music, iCloud, and the App Store.
In terms of hardware, iPhone sales increased by 2% to $46.84 billion during Q2 2025. Even Mac and iPad revenues also experienced growth of 7% ($7.95 billion) and 15% ($6.4 billion), respectively. Notably, new MacBook Airs were the key driver behind the rise in Mac sales.
The Wearables, Home, and Accessories segment (which includes products like the Apple Watch, AirPods, and HomePod) brought in $7.52 billion in revenue during Q2 2025. This marks a decline of roughly 4.9% compared to the $7.91 billion reported in the same quarter last year. Additionally, the Cupertino-headquartered tech giant announced a substantial $100 billion share repurchase program and a 4% increase in its quarterly dividend to $0.26 per share.
However, despite these positive results, Apple’s stock experienced a 2.4% decline in after-hours trading. Actually, investors expressed concerns over the company’s performance in China (where sales fell short of expectations) and the potential impact of new US tariffs on electronics. The company’s revenue in Greater China slipped 2% to $16 billion, compared with a 11% fall in the prior-year quarter.
During the earnings call, Apple CEO Tim Cook addressed the uncertainty surrounding global trade tensions, particularly the impact of tariffs. He acknowledged that the company is currently unable to precisely estimate the financial effect tariffs might have for the June quarter. However, under the assumption that existing global tariff rates, policies, and their enforcement remain unchanged for the rest of the quarter (and that no additional tariffs are introduced), he stated that the company expects the impact to result in an added cost of around $900 million.
Meanwhile, he also highlighted the company’s efforts to diversify its manufacturing base, with plans to shift more production to countries like India (where it recently began iPhone production at a new Tata-owned plant) and Vietnam.
Along with tariffs, another significant issue impacting Apple’s upcoming quarter earnings is a recent US federal court ruling. A federal judge decided that Apple violated a 2021 injunction originating from its antitrust case with Epic Games. The injunction had required Apple to permit developers to include links to external payment methods outside of the App Store. This ruling could significantly impact Apple’s App Store revenue, which is largely generated from ‘commission’ fees. Additionally, last week, the company was fined 500 million euros by the European Commission for failing to allow developers to link out from its App Store for external sales.
In the artificial intelligence (AI) front, while Apple is actively investing in and integrating AI across its products and services (including wearables and health features), the company is still encountering significant challenges. Despite its efforts, the tech giant has yet to deliver breakthrough AI capabilities, with key developments like AI-driven advancements to Siri facing delays, with some reports suggesting they may not be available until 2026.
