Those cost projections, which are based on current rates and policies, could end up lower than expected as they did in the previous quarter. Apple incurred about $800 million of tariff-related costs for the June quarter, less than the $900 million estimate the company shared in May. Cook said most of the tariffs levied against Apple stem from the International Emergency Economic Powers Act (IEEPA). Earlier this year, and amid a brewing trade war, the U.S. government and China agreed to a 30% tariff on impor ...

Market Overview - Markets closed July on a weak note, with the Dow down 330 points (-0.74%), S&P 500 down 23 points (-0.37%), Nasdaq down 7 points (-0.03%), and Russell 2000 down 20 points (-0.93%) [1] - The trade outlook remains fragile, and recent economic reports indicate a warming economy, but markets may not continue to set record highs [2] Earnings Reports - Apple (AAPL) reported fiscal Q3 earnings of $1.57 per share, exceeding the $1.42 consensus, with revenues of $94.0 billion surpassing projections of $88.9 billion, leading to a 3% increase in shares [4] - Apple's Services segment achieved a record-high revenue of $27.4 billion for Q3, accounting for nearly 30% of total revenues, despite a year-to-date decline of 17% in share price [5] - Amazon (AMZN) posted Q2 earnings of $1.68 per share, beating the expected $1.33, with revenues of $167.7 billion exceeding the $162.3 billion estimate; however, shares fell over 2% in after-market trading due to lower-than-expected operating income guidance [6] - Roku (ROKU) reported Q2 earnings of $0.07, surpassing the consensus of -$0.16, with revenues of $1.11 billion exceeding the $1.07 billion forecast; its platform segment grew 18% and is expected to generate $4.075 billion for the full year [7] - Reddit (RDDT) shares rose 14% after reporting earnings of $0.48 per share, significantly above the estimated $0.20, with revenues of $499 million, a 78% year-over-year increase, surpassing the forecast of $427.4 million [8]

Core Insights - Apple's CEO highlighted the successful release of "F1: The Movie," which grossed over $500 million globally, marking a significant achievement for the company in the entertainment sector [1][2] - The company's Services division, which includes Apple TV+, reported a record revenue of $27.4 billion in the June quarter, reflecting a 13% year-over-year increase [3] - Apple TV+ experienced strong growth, with a notable increase in original content recognition, achieving a record 81 Emmy nominations [4] Financial Performance - Apple reported total revenue of $94 billion for its fiscal third quarter, representing a 10% increase from the previous year [5] - iPhone sales surged to $44.5 billion, up from $39.3 billion, contributing significantly to the overall revenue growth [5] - Quarterly diluted earnings per share reached $1.57, marking a 12% increase year-over-year [5] Strategic Developments - The company is reportedly in a position to acquire F1 broadcasting rights from Disney/ESPN, indicating a strategic move to enhance its sports content offerings [2] - Apple's CEO mentioned positive trends across all geographic segments, with double-digit growth in iPhone, Mac, and Services [6] - The recent Worldwide Developers Conference (WWDC25) introduced new software designs and features, showcasing Apple's commitment to innovation [6]

Core Insights - Apple reported $94.04 billion in revenue for the quarter ended June 2025, a year-over-year increase of 9.6%, with an EPS of $1.57 compared to $1.40 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $88.92 billion by 5.75% [1] - EPS surpassed the consensus estimate of $1.42 by 10.56% [1] Geographic Revenue Breakdown - Greater China: $15.37 billion, +4.4% year-over-year, above the estimate of $15.27 billion [4] - Europe: $24.01 billion, +9.7% year-over-year, exceeding the estimate of $22.75 billion [4] - Rest of Asia Pacific: $7.67 billion, +20.1% year-over-year, above the estimate of $6.64 billion [4] - Japan: $5.78 billion, +13.4% year-over-year, compared to the estimate of $5.63 billion [4] - Americas: $41.2 billion, +9.3% year-over-year, exceeding the estimate of $38.49 billion [4] Net Sales by Category - Total Net Sales: $66.61 billion, +8.2% year-over-year, above the estimate of $61.56 billion [4] - Services: $27.42 billion, +13.3% year-over-year, exceeding the estimate of $26.95 billion [4] - Mac: $8.05 billion, +14.8% year-over-year, above the estimate of $7.16 billion [4] - iPhone: $44.58 billion, +13.5% year-over-year, exceeding the estimate of $40.61 billion [4] - Wearables, Home and Accessories: $7.4 billion, -8.6% year-over-year, slightly above the estimate of $7.34 billion [4] - iPad: $6.58 billion, -8.1% year-over-year, below the estimate of $6.78 billion [4] Stock Performance - Apple shares returned -1.6% over the past month, while the Zacks S&P 500 composite increased by 2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Group 1: Earnings Performance - Apple reported quarterly earnings of $1.57 per share, exceeding the Zacks Consensus Estimate of $1.42 per share, and up from $1.40 per share a year ago, representing an earnings surprise of +10.56% [1] - The company posted revenues of $94.04 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.75%, compared to $85.78 billion in the same quarter last year [2] Group 2: Stock Performance and Outlook - Apple shares have declined approximately 16.5% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.61 on revenues of $96.43 billion, and for the current fiscal year, it is $7.11 on revenues of $404.76 billion [7] Group 3: Industry Context - The Computer - Micro Computers industry, to which Apple belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Apple reported a fiscal third quarter revenue of $94.04 billion, a nearly 10% increase year-over-year, surpassing analyst expectations of $89.54 billion [1] - Earnings per share reached $1.57, exceeding the anticipated $1.43 per share [1] Sales Performance - iPhone sales increased by 13.5% to $44.58 billion, outperforming analyst expectations of $40.22 billion [2][7] - Sales in the Americas segment rose by 9.3% to $41.2 billion, despite potential tariff impacts [4] Supply Chain and Tariffs - Apple has shifted production to India and Vietnam to mitigate the effects of US tariffs, which could cost the company $900 million in the fiscal third quarter [3] - The company trimmed its annual share buyback program by $10 billion to maintain financial flexibility [3] Consumer Behavior - CEO Tim Cook noted that approximately 1 percentage point of the 9.6% sales growth was due to early purchases ahead of potential tariffs [5] - There was evidence of pull-ahead purchases related to tariff announcements [6] Competitive Landscape - Apple faces competition from Samsung in the premium mobile phone market and challenges from Alphabet in the software domain [9] - The company is increasing investments in artificial intelligence, despite delays in releasing an AI-enhanced version of Siri [10][15] Services and Other Products - Sales from Apple's services business, including the App Store, reached $27.42 billion, exceeding expectations of $26.8 billion [12] - Wearables sales were $7.4 billion, below estimates of $7.82 billion, while Mac sales of $8.05 billion surpassed expectations of $7.26 billion [13] Financial Metrics - Gross margins were reported at 46.5%, beating analyst expectations of 45.9% [14]

Financial Data and Key Metrics Changes - The company reported a June revenue record of $94 billion, up 10% year over year, with EPS at a record $1.57, up 12% year over year [5][26]. - Gross margin was 46.5%, down 60 basis points sequentially, primarily due to approximately $800 million in tariff-related costs [27]. - Operating expenses were $15.5 billion, up 8% year over year, leading to a net income of $23.4 billion, also a record [28]. Business Line Data and Key Metrics Changes - iPhone revenue reached $44.6 billion, up 13% year over year, driven by the popularity of the iPhone 16 family [13][28]. - Mac revenue was $8 billion, up 15% year over year, with strong performance from the MacBook Air and MacBook Pro [14][30]. - Services revenue hit an all-time high of $27.4 billion, up 13% year over year, with strong growth across various markets [19][27]. Market Data and Key Metrics Changes - The company saw revenue records in over two dozen countries, including the US, Canada, and India, with double-digit growth in emerging markets [6][26]. - In Greater China, revenue grew by 4% during the quarter, driven by iPhone and Mac sales [56]. Company Strategy and Development Direction - The company is significantly increasing investments in AI, integrating AI features across its platforms, and focusing on user privacy and personalization [10][11][64]. - The company is committed to a $500 billion investment in the U.S. over the next four years, focusing on advanced manufacturing and AI [23][81]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in various markets and the strong performance of new products, despite challenges from tariffs [25][37]. - The company expects total revenue growth in the mid to high single digits for the September quarter, with services revenue growth similar to the June quarter [38]. Other Important Information - The company incurred approximately $800 million in tariff-related costs for the June quarter and estimates an additional $1.1 billion for the September quarter [24][25]. - The installed base of active devices reached an all-time high across all product categories [26]. Q&A Session Summary Question: Upgrade rates and CapEx - The company noted that upgrade rates were strong due to the popularity of the iPhone 16 family, with a minor pull forward of demand related to tariff discussions [40][45][46]. - CapEx is increasing significantly, driven by investments in AI and private cloud computing [42][44]. Question: Services growth and search trends - Management indicated that Apple products remain valuable as search access points, despite evolving consumer behaviors [50][52]. - Services growth was strong, with double-digit growth in both developed and emerging markets [84]. Question: Demand in China - Demand for the iPhone 16 was strong in China, with record upgraders and significant growth in the installed base [56][58]. Question: Siri and AI investments - The company is making good progress on a more personalized Siri, with expectations to release new features next year [61][63]. Question: Tariff impacts and supply chain strategy - The company is actively optimizing its supply chain to mitigate tariff impacts and is committed to increasing U.S. manufacturing [80][91]. Question: iPhone demand drivers - Strong upgrade performance was attributed to the iPhone 16 family and promotional activities [89][93].

Apple Inc. (NASDAQ: AAPL ) has just released its quarterly results , with revenues up 10% and earnings per share up 12%. But if this is really the future of Cupertino, then Houston, we have a problem. Because while Meta (Hi there, and welcome to my profile.I’m a finance professional with over a decade of experience across global markets, with a deep focus on macroeconomic analysis, portfolio management, and equity research. I currently serve as a Senior Analyst at a European asset management firm, where I l ...

Apple (AAPL) Q3 2025 Earnings Call July 31, 2025 05:00 PM ET Speaker0Good afternoon, and welcome to the Apple q fiscal year twenty twenty five earnings conference call. My name is Suhasini Chandramali, Director of Investor Relations. Today's call is being recorded. Speaking first today is Apple's CEO, Tim Cook, and he'll be followed by CFO, Kevin Parekh. After that, we'll open the call to questions from analysts.Please note that some of the information you'll hear during our discussion today will consist of ...

In a quarter marred by tariff talk, iPhone sales were stronger than expected, and the company returned to growth in China. Here's our initial take on Apple's (AAPL -0.68%) fiscal 2025 third-quarter financial report. Key Metrics | Metric | Q3 FY24 | Q3 FY25 | Change | vs. Expectations | | --- | --- | --- | --- | --- | | Revenue | $85.8 billion | $94.0 billion | 10% | Beat | | Earnings per share | $1.40 | $1.57 | 12% | Beat | | iPhone revenue | $39.3 billion | $44.6 billion | 13% | Beat | | Services revenue | ...