Apple’s $95.36B Q2 Revenue Exceeds Expectations

Apple reported Thursday on a stellar January-to-March quarter, surpassing Wall Street forecasts with $95.36 billion in revenue, cementing its position as the world’s most valuable company. 

The results, which marked a 5.1% year-over-year increase, outperformed analyst expectations of $94.26 billion, according to Zacks Investment Research. During the earnings call, CEO Tim Cook addressed the impact of President Trump’s proposed tariffs, estimating an additional $900 million in costs for the current quarter due to the administration’s trade policies.

The quarter’s strength was driven by a record-breaking $26.65 billion in revenue from Apple’s Services division, which includes Apple TV+, Apple Music, iCloud, and other subscription-based offerings. This 11.64% year-over-year increase in Services revenue, following a $26.34 billion record in Q4 2024, helped offset a slight sales dip in China, where Apple faces growing competition and economic challenges.

Notably, Apple’s official press release omitted any mention of tariffs, China, or President Trump, despite intense scrutiny from investors and analysts regarding the potential impact of new U.S. trade policies. As a company that manufactures most of its products in China, Apple remains a focal point in discussions about how tariffs could disrupt global supply chains and increase consumer prices.

Key Financial Highlights from Apple’s Q2 2025 Report:

• Revenue: $95.36 billion, up 5.1% from $90.75 billion in Q2 2024, exceeding Zacks’ consensus estimate of $94.26 billion.
• Net Income: $24.78 billion, a nearly 5% rise from $23.63 billion in the prior year.
• Earnings Per Share: $1.65 per diluted share, topping analyst projections of $1.61.
• iPhone Sales: Revenue from Apple’s flagship product grew 1.9% to $46.84 billion, a notable rebound after a reported decline in iPhone sales during Q4 2024. The uptick contributed to Apple’s record-breaking quarterly revenue.
• Services: The Services segment achieved $26.65 billion in sales, up 11.64% year-over-year, marking its second consecutive record-breaking quarter. Apple did not disclose specific contributions from Apple TV+ or Apple Music, consistent with its practice of not breaking out individual service revenues.
• Wearables, Home, and Accessories: This category, including Apple Watch and AirPods, saw a 4.94% sales decline to $7.52 billion, the only segment to report a year-over-year drop.

The company’s ability to navigate tariff-related cost pressures and maintain growth will remain a key focus for investors, particularly as U.S.-China trade tensions persist.