Apple(US:AAPL)2025-10-31 01:53Summary of Apple Inc. (AAPL) F4Q25 Earnings Call Company Overview - Company: Apple Inc. (AAPL) - Quarter: F4Q25 - Key Financial Metrics: - EPS: $1.85 - Total Revenue: $102.4 billion - Services Revenue: $28.8 billion (+15% YoY) - iPhone Revenue: $49.0 billion (+6% YoY) Core Points and Arguments 1. Earnings Performance: - AAPL's EPS of $1.85 exceeded Goldman Sachs (GS) and consensus estimates of $1.81 and $1.78 respectively, driven by strong performance in Services and gross profit margins [2][3][7] - Total revenue of $102.4 billion was in line with consensus but below GS's estimate of $103.5 billion [5][6] 2. Revenue Breakdown: - Products revenue was $73.7 billion, missing GS and consensus estimates of $75.3 billion and $74.2 billion, primarily due to a miss in iPhone revenue [5][6] - Services revenue of $28.8 billion beat expectations, with most components accelerating year-over-year [2][6] 3. Gross Margins: - Product gross margins were 36.2%, beating GS and consensus estimates of 35.6% and 36.1% [7] - Services gross margins were 75.3%, slightly below GS's estimate of 75.5% but above consensus [7] 4. Future Guidance: - AAPL guided for 10-12% year-over-year revenue growth for F1Q26, which is better than GS's estimate of 9% [7][8] - Double-digit growth in iPhone revenue is expected, compared to GS's estimate of 10% [7] 5. AI Developments: - AAPL confirmed that an updated version of Siri is on track for release next year, with plans for more AI partnerships similar to its existing agreement with ChatGPT [1] Additional Important Insights 1. Supply Chain Constraints: - AAPL noted supply constraints for several iPhone 16 and 17 models during the quarter, impacting iPhone revenue [5] 2. Share Repurchase: - AAPL repurchased approximately $20 billion of shares during the quarter, which was below GS's expectation of $25 billion [7] 3. Geographic Revenue Performance: - Revenue from the Americas was $44.2 billion (-4% YoY), Europe was $28.7 billion (+5% YoY), Greater China was $14.5 billion (-8% YoY), Japan was $6.6 billion (+3% YoY), and Rest of Asia-Pacific was $8.4 billion (+6% YoY) [6][8] 4. Key Risks: - Weakening consumer demand, supply chain disruptions, intensifying competition, regulatory risks, and capital allocation execution are highlighted as key risks to AAPL's outlook [9][10][11][12][14] 5. Investment Rating: - Goldman Sachs maintains a "Buy" rating on AAPL with a 12-month price target of $279, reflecting a potential upside of 3.4% from the current price of $269.70 [18] Conclusion - AAPL's strong performance in Services and guidance for future growth, despite challenges in product revenue, positions the company favorably in the market. The focus on AI and continued share repurchases further supports its investment thesis. However, potential risks related to consumer demand and supply chain issues warrant close monitoring.