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    AAPL
    Earnings call· Sep 2025(Q4 FY25)

    Apple Q4 FY25 earnings call AAPL

    Oct 30, 2025 Source

    Executive summary

    Apple Q4 FY25 — Record Revenue and Strong iPhone Demand

    Apple delivered a record-breaking September quarter, driven by robust demand for its latest iPhone lineup and continued strength in Services. The company is heading into the holiday season with its strongest product portfolio ever, anticipating its best December quarter for overall revenue and iPhone sales. Investments in AI and product innovation remain a key focus, with new M5 and A19 Pro chips powering advanced AI capabilities across devices.

    Highlights

    5

    • Total revenue reached a September quarter record of $102.5 billion, up 8% YoY.

    • Services revenue hit an all-time record of $28.8 billion, growing 15% YoY.

    • EPS was a September quarter record at $1.85, up 13% YoY on an adjusted basis.

    • iPhone revenue set a September quarter record of $49 billion, up 6% YoY.

    • Mac revenue was strong at $8.7 billion, up 13% YoY.

    Concerns

    4

    • iPhone 16 and 17 models faced supply constraints due to strong demand, limiting sales.

    • iPad revenue was flat YoY at $7 billion, facing a difficult comparison.

    • Wearables, Home and Accessories revenue was flat YoY at $9 billion, impacted by strong prior-year performance in accessories.

    • Greater China revenue was down 4% YoY in the September quarter, primarily due to iPhone supply constraints.

    Guidance & targets

    9
    CategoryTargetConfidence
    December quarter total company revenue growth
    10% to 12% year-over-year
    high materiality
    High
    December quarter iPhone revenue growth
    double digits year-over-year
    high materiality
    High
    December quarter Services revenue growth
    similar to what we reported in the fiscal year 2025
    medium materiality
    Medium
    December quarter gross margin
    between 47% and 48%
    high materiality
    High
    December quarter operating expenses
    between $18.1 billion and $18.5 billion
    high materiality
    High
    December quarter Other Income & Expense (OI&E)
    around $150 million
    low materiality
    High
    December quarter tax rate
    around 17%
    low materiality
    High
    Personalized Siri release
    next year
    medium materiality
    High
    Investment in the U.S.
    $600 billion over the next 4 years
    high materiality
    High

    Segment performance

    8
    SegmentRevenueYoYQoQMargin
    Total Company
    September quarter record revenue.
    		$102.5B8%——
    Products
    September quarter record revenue, driven by growth in iPhone and Mac.
    		$73.7B5%——
    Services
    All-time revenue record, with double-digit growth in developed and emerging markets and across most categories.
    		$28.8B15%——
    iPhone
    September quarter revenue record, driven by the iPhone 16 family, despite supply constraints on iPhone 16 and 17 models. Grew in the vast majority of markets, with September quarter records in many emerging markets and an all-time record in India.
    		$49B6%——
    Mac
    Strong September quarter, driven by the strength of the MacBook Air. Grew in every geographic segment with strong double-digit growth in emerging markets.
    		$8.7B13%——
    iPad
    Flat year-over-year, facing a difficult comparison against the full quarter impact of last year's iPad Air and iPad Pro launch, offset by better-than-expected performance on the iPad.
    		$7B0%——
    Wearables, Home and Accessories
    Flat year-over-year, driven by growth in Watch and AirPods, offset by accessories which were impacted by strong performance in the year-ago quarter due to iPad launches.
    		$9B0%——
    Greater China
    September quarter record for Services revenue. Overall revenue was down 4% YoY, driven by iPhone supply constraints.
    		—-4%——

    Operational metrics

    22
    Company gross margin
    47.2%up 70 bps sequentially
    Q4 FY25

    Above the high end of guidance range.

    Products gross margin
    36.2%up 170 bps sequentially
    Q4 FY25
    Services gross margin
    75.3%down 30 bps sequentially
    Q4 FY25
    Operating expenses
    $15.9Bup 11% year-over-year
    Q4 FY25
    Net income
    $27.5B
    Q4 FY25

    September quarter record.

    Diluted EPS (adjusted)
    $1.85up 13% year-over-year
    Q4 FY25

    September quarter record.

    Total fiscal year revenue
    $416B
    FY25

    All-time revenue record.

    Total fiscal year Services revenue
    $100B+up 14% year-over-year
    FY25

    Best year ever for Services.

    Cash and marketable securities
    $132B
    Q4 FY25

    Ended the quarter with this balance.

    Debt maturities
    $1.3B
    Q4 FY25
    Commercial paper decrease
    $1.9B
    Q4 FY25
    Total debt
    $99B
    Q4 FY25
    Net cash
    $34B
    Q4 FY25

    At the end of the quarter.

    Capital returned to shareholders
    $24B
    Q4 FY25

    During the quarter.

    Dividends and equivalents
    $3.9B
    Q4 FY25

    Part of capital return.

    Open market share repurchases
    $20B
    Q4 FY25

    Part of capital return.

    Cash dividend per share
    $0.26
    Q4 FY25

    Declared by Board of Directors.

    Apple Pay active users growth
    double-digit growthyear-over-year
    Q4 FY25

    Contributed to payment services all-time revenue record.

    Apple TV Emmy Awards wins
    22
    FY25

    Ted Lasso led as most comedy series wins in Emmy's history. Severance topped all dramas.

    Apple TV productions total awards
    600+ wins
    To date

    Driven by original storytelling.

    Apple Pay country availability
    nearly 90
    Q4 FY25

    Expanding reach of services offerings.

    Jobs supported in the U.S. by Apple investments
    450,000+
    Ongoing

    Supported through thousands of suppliers across all 50 states.

    Industry KPIs

    7
    MetricValueDetails
    Capital return FCF$24B$B
    Gross margin drivers47.2%%
    Company specific kpis98%%
    Market share commentarytop-selling model
    Component supply constraintsconstrained
    Installed base refresh runwayall-time high
    Revenue mix by end market segment—

    Product announcements

    13
    ProductTypeDetails
    M5 chiplaunch
    iPad Pro with M5launch
    MacBook Pro with M5launch
    Apple Vision Pro with M5launch
    iOS 26, iPadOS 26, Mac software designlaunch
    Apple Intelligencelaunch
    iPhone 17 Prolaunch
    iPhone Airlaunch
    Apple Watch Ultra 3launch
    Apple Watch Series 11launch
    Apple Watch SE 3launch
    AirPods Pro 3launch
    AppleCare Onelaunch

    Deals & partnerships

    1
    Formula 1Partnership

    Apple TV will be the destination for F1 fans across the U.S. on track day, starting next year. F1, the movie, will also be coming to Apple TV on December 12.

    Capital programs

    3
    U.S. Investment in Innovationunderway$600B

    Benefit: Innovation in advanced manufacturing, silicon engineering, and artificial intelligence; supporting 450,000+ jobs

    Commitment to invest over the next 4 years, building on long-standing investments in America.

    Houston Advanced AI Service Factorycompleted

    Benefit: Manufacturing of servers for Apple Intelligence

    New factory in Houston for advanced AI service just started shipping its first products off the line.

    Private Cloud Compute (PCC) Environment Build-outunderway
    Period spend: CapEx costs in FY25

    Benefit: First-party data centers for AI investments

    CapEx costs in FY25 were associated with building out the Private Cloud Compute environment in first-party data centers.

    Risks & headwinds

    6
    Supply constraints for iPhone 16 and 17 modelsSeptember quarter, ongoing into December quarter

    Limited sales, could have sold more

    Mitigation: Working hard to fulfill all orders; not a ramp issue, but strong demand exceeding initial supply estimates.

    Difficult comparison for Mac revenueDecember quarter

    Expected to face a very difficult compare

    Mitigation: Acknowledged that last year saw a 'mother of all Mac launches' with multiple products, while this year only the 14-inch MacBook Pro launched. Long-term bullish on Mac.

    Difficult comparison for iPad revenueSeptember quarter

    Flat year-over-year

    Mitigation: Against the full quarter impact of the iPad Air and iPad Pro launch from last year.

    Difficult comparison for Wearables, Home and Accessories revenueSeptember quarter

    Flat year-over-year

    Mitigation: Impacted by strong performance in the year-ago quarter driven by iPad launches.

    Global tariff rates, policies, and applicationDecember quarter

    Estimated impact of $1.4 billion of tariff-related costs in December quarter

    Mitigation: Guidance assumes stable tariff environment. The recent change from 20% to 10% tariffs in China is factored into the outlook.

    Global macroeconomic outlook worseningDecember quarter

    Not quantified

    Mitigation: Guidance assumes the global macroeconomic outlook does not worsen from today.

    Q&A highlights

    10

    Is the iPhone 17's success due to an installed base replacement cycle or specific new features?

    Tim Cook attributed the success to the incredibly strong product lineup, calling the iPhone 17 Pro the most 'pro' phone ever, the iPhone Air thin and light, and the iPhone 17 offering great value with features previously reserved for Pro models.

    “It's all about the product. The product lineup is incredibly strong, our strongest ever. The 17 Pro is the most pro phone we've ever done.”

    asked by Erik Woodring · answered by Timothy Cook

    2 min read5 chapters

    Detailed Narrative

    01

    AI Innovation and Product Integration

    Apple is significantly expanding its investment in AI, integrating intelligence into its products and services. Key advancements include the M5 chip with neural accelerators for AI workflows, the A19 Pro chip, and new features like Live Translation, visual intelligence, and Workout Buddy. The company is also making progress on a more personalized Siri, expected to be released next year, and is making its on-device foundation models available to developers.

    02

    Strong Product Lineup and Customer Response

    The latest product lineup, including the iPhone 17 family, M5 MacBook Pro, and M5 iPad Pro, has received a tremendous response. The iPhone 17 Pro features an 8x telephoto camera and A19 Pro chip, while the iPhone Air offers a breakthrough design. The MacBook Air continues to be popular, and the new iPad Pro provides a significant boost in AI performance. The Apple Watch lineup, including Ultra 3 and Series 11, introduces new health features like hypertension notifications and sleep score, developed using large-scale machine learning models.

    03

    Services Growth and Content Expansion

    Services revenue achieved an all-time record, driven by double-digit growth across advertising, App Store, cloud services, Music, payment services, and video. Apple TV continues to gain accolades, with 22 Emmy wins this year. A new partnership with Formula 1 will make Apple TV the destination for F1 fans in the U.S. starting next year, further expanding its content offerings.

    04

    Global Market Performance and Emerging Markets

    Apple achieved September quarter revenue records in numerous markets, including the U.S., Canada, Latin America, Western Europe, the Middle East, Japan, Korea, and South Asia. Emerging markets, particularly India, saw all-time revenue records. The company's installed base of active devices reached an all-time high across all product categories and geographic segments, indicating strong customer satisfaction and loyalty.

    05

    Strategic Investments and Manufacturing

    Apple is committed to investing $600 billion over the next four years in the U.S., focusing on advanced manufacturing, silicon engineering, and artificial intelligence. This includes a new factory in Houston for advanced AI services, which has begun shipping its first products. The company is also leading the creation of an end-to-end silicon supply chain across the country, supporting thousands of jobs.

    AI-generated summary of the company’s earnings call. Not investment advice.