Apple Inc. (AAPL) shares closed at $207.57 on Thursday, falling 0.71% during regular trading hours. The stock quickly reversed course in after-hours trading, jumping 2% to $211.00 following the release of quarterly earnings that exceeded Wall Street forecasts.
The tech giant delivered earnings per share of $1.57 on revenue of $94.04 billion for the fiscal third quarter ending June 28. These results represented a 12% jump in profit and a 10% revenue increase compared to the same period last year, driven by robust product sales and expanding services revenue.
Apple’s financial performance showed strength across most geographic regions, with the company posting double-digit growth in iPhone, Mac, and Services divisions. The board also declared a cash dividend of $0.26 per share, scheduled for payment on August 14, 2025.
iPhone Revenue Surge Compensates for iPad Weakness
iPhone revenue reached $44.58 billion during the quarter, marking a 13% year-over-year increase that beat analyst expectations of $40.22 billion. The iPhone 16 model outperformed its predecessor, with particularly strong uptake among current Apple customers, making it the primary driver of the company’s overall revenue growth.
$AAPL | Apple is +2.6% after-hours.
🔹 EPS: $1.57 vs. $1.43 est. ✅
🔹 Revenue: $94.04B vs. $89.35B est. ✅Key takeaways:
🔸 iPhone revenue: +14% YoY
🔸 Services revenue: +13% YoY
🔸 Accessories revenue: +13% YoY
🔸 Mac rev: +15% YoY
🔸 iPad rev: -8% YoY
🔸 China rev: +4% YoY pic.twitter.com/eALbC4bbdF— CMG Venture Group (@CmgVenture) July 31, 2025
However, iPad sales presented a different story, dropping 8% to $6.58 billion and falling short of projections. A budget-friendly iPad model introduced in March didn’t succeed in boosting unit sales numbers. The “Other Products” category, which encompasses wearables and accessories, also declined 8.64% to $7.4 billion.
Mac computers emerged as the quarter’s standout performer, generating $8.05 billion in revenue with nearly 15% year-over-year growth. New MacBook Air models launched before the quarter contributed significantly to this expansion, making Mac the fastest-growing product segment during the period.
China Market Recovery Signals Regional Turnaround
Greater China revenue climbed 4% year-over-year to $15.37 billion, marking the first positive growth after two straight quarters of decline. Government subsidies on certain Apple devices played a role in this recovery, providing both pricing support and stimulating local consumer demand.
The region had experienced challenging conditions with an 11% revenue decline in Q1 followed by a 2% drop in Q2. Company executives credited the recent improvement to better macroeconomic conditions and strategic pricing decisions across China, Hong Kong, and Taiwan markets.
Apple also noted that approximately one percentage point of its revenue growth came from customers making purchases ahead of potential tariff implementations. The company absorbed $900 million in tariff-related costs during the quarter while working to maintain product accessibility amid ongoing trade tensions.
Services Growth and AI Investments Shape Future Direction
The services division generated $27.42 billion in revenue, representing a 13% increase that surpassed analyst expectations of $26.80 billion. iCloud storage and App Store transactions led this growth, with strong performance in subscription services and licensing partnerships.
Apple highlighted its expanding artificial intelligence initiatives across all platforms and devices, revealing the acquisition of seven companies this year to enhance AI capabilities. Leadership indicated plans for continued AI investment while actively pursuing additional strategic opportunities in the space.
The company reported record-high numbers for its global installed base of active devices, with customer satisfaction and loyalty continuing to drive platform engagement. Apple remains focused on balancing long-term infrastructure investments with near-term operational execution.
Market Sentiment Analysis
Apple’s strong quarterly performance and after-hours stock surge reflect solid investor confidence in the company’s core business fundamentals and growth trajectory. The broad-based revenue growth across key segments suggests sustained momentum that could positively influence broader tech sector sentiment.
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