Apple set a new record for iPhone revenue in its most recent financial quarter. Total company revenue reached $102.5 billion, an 8% increase over the same quarter of last year. And earnings per share hit $1.85, a rise of 13%, the company said Thursday.
Plus, Apple CEO Tim Cook predicted the current quarter will be “the best ever in the history of the company” — and AAPL’s stock price shot up in after-hours trading.
Apple beats analysts’ predictions, and AAPL stock price rises
Apple’s acclaimed consumer electronics devices, and the services that run on them, power a shockingly efficient money-making machine. With quarterly revenues in the billions, the company’s market capitalization currently hovers above $4.027 trillion, ranking second only to AI chipmaking juggernaut Nvidia.
Before today’s earnings announcement, Wall Street predicted that Apple’s revenue in the July-through-September quarter would reach $102 billion, a 7% rise. Analysts expected Apple’s earnings per share to hit $1.77. Apple surpassed those analysts’ expectations, as it does so often, especially in EPS.
“Apple is very proud to report a September quarter revenue record of $102.5 billion, including a September quarter revenue record for iPhone and an all-time revenue record for Services,” said Apple CEO Tim Cook in a press release announcing the quarterly results.
The iPhone is Apple’s most lucrative product, so its performance is always closely watched. Last quarter, Apple brought in $49 billion from handsets, a 6% year-over-year increase. Mac revenue totaled $8.8 billion, a 13% annual increase, while quarterly iPad revenue was flat at $7 billion.
In its services sector, Apple took in $28.8 billion from the App Store, Apple Music, etc. That’s a 15% increase YOY, which is why Cook highlighted the category in his comment.
Tim Cook sees the ‘best ever’ Apple quarter ahead
While these quarterly results were good, Cook predicted the holiday quarter that runs through December will be even better.
“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 will make the December quarter the best ever in the history of the company,” Cook told CNBC.
Soon after this very optimistic prediction, Apple’s stock price rose about 3% in after-hours trading. That pushed the company’s market capitalization back above the $4 trillion mark, a milestone the company reached earlier this week.
Apple is also optimistic about China
China is Apple’s third-largest market, so the 4% year-over-year drop in revenue from the country last quarter is a cause for concern for investors. But Apple’s CEO predicts the results in China will be better in the current quarter.
“I was just there. It’s incredibly vibrant and dynamic,” said Cook during a conference call with analysts Thursday. “The store traffic is up significantly year over year. The iPhone 17 has been very well received there. We do believe that we’ll return to growth in Q1 [the current quarter], and that is largely based on the reception of the iPhone there, and so I couldn’t be more pleased with how things are going there in the early going.”
Trump tariff costs on the rise, though
Tariffs imposed by President Donald Trump on products imported into the United States will cost Apple $1.4 trillion in the current quarter, according to a prediction made Thursday by Kevan Parekh, Apple’s CFO.
That‘s a rise from the $1.1 billion in import taxes Apple had to pay in the current quarter. And it could have been worse — Parekh’s prediction takes into account the 50% drop in tariffs on products assembled in China that Trump announced Thursday.
More than one good quarter
The September quarter marks the end of Apple’s financial year, and it was a strong one in Cupertino.
“Our September quarter results capped off a record fiscal year, with revenue reaching $416 billion, as well as double-digit EPS growth,” said Parekh. “And thanks to our very high levels of customer satisfaction and loyalty, our installed base of active devices also reached a new all-time high across all product categories and geographic segments.”
