Apple Surpasses Wall Street Estimates with $102.47 Billion in Q4 Revenue
Apple reported impressive fiscal fourth-quarter results, posting $102.47 billion in revenue—an 8% increase compared to the same period last year. The company also delivered earnings per share (EPS) of $1.85, beating analysts’ expectations of $1.77.
However, not all regions performed equally well. Sales in Greater China, which includes mainland China, Hong Kong, and Taiwan, declined 4% year-over-year to $14.49 billion.
### iPhone Sales Slightly Below Expectations
Despite the strong headline numbers, Apple shares remained flat in after-hours trading. This muted reaction is likely due to the iPhone revenue falling short of analyst expectations. The iPhone generated $49.03 billion, below the predicted $50.19 billion, although still representing a 6% year-over-year increase. This figure includes just over a week of sales from the new iPhone 17 lineup.
CEO Tim Cook attributed the iPhone shortfall to supply constraints:
“Currently, we’re supply constrained on several models of the iPhone 17,” he explained.
### Mac and Services Show Strong Growth
Other business segments showed mixed results:
– **Mac Division:** Apple’s Mac segment had a strong quarter, earning $8.73 billion, which topped the $8.59 billion estimate and reflected 13% growth year-over-year. Cook highlighted robust demand for the refreshed MacBook Air, which received a $100 price cut in March, lowering the entry price to $999.
– **iPad Segment:** iPad sales were relatively flat, generating $6.95 billion and slightly missing the $6.98 billion target. This was expected, as no new iPad models launched during the quarter. The new iPad Pro with the M5 chip, released in October, will contribute to fiscal Q1 2026 results.
– **Other Products:** This category, which includes AirPods, Apple Watch, and the Vision Pro headset, reached $9.01 billion—better than the $8.49 billion forecast but slightly down from previous quarters.
– **Services:** The standout performer was Apple’s Services segment, which hit $28.75 billion, surpassing the $28.17 billion estimate. This category includes the App Store, Apple Music, iCloud, AppleCare, payment fees, Google search licensing, and more. Services revenue grew 15%, with Cook expressing strong confidence:
“It was a run of the table,” he said, noting accelerating growth across Services components.
### Optimistic Outlook for China and December Quarter
Despite the decline in Greater China sales, Tim Cook remains optimistic about a rebound:
“We expect China to return to growth this quarter because of the reception of the iPhone there, or the iPhone 17 family.”
Apple’s guidance for the December quarter looks especially strong. While analysts anticipated revenue of $132.31 billion and EPS of $2.53, Apple expects to exceed both, forecasting 10-12% revenue growth. This would bring sales to approximately $137.97 billion—the highest quarterly revenue in company history.
Cook said:
“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 would make the December quarter the best ever in the history of the company.”
He cited early signs of robust iPhone 17 sales and noted that in-store traffic is up significantly year-over-year. Consumer enthusiasm heading into the holiday season remains high.
### Upcoming Siri and AI Enhancements
Looking forward, Cook confirmed that Siri will receive a major update next year, alongside increased AI integrations. Apple plans to incorporate OpenAI’s ChatGPT into its intelligence platform with the goal of expanding integration over time.
### Tariffs and Financial Health
When asked about the impact of Trump-era tariffs on pricing, Cook stated:
“We held the pricing that we would have done without any tariffs, and we’re just absorbing the tariffs in gross margin.”
Apple’s gross margin stood at 47.2%, ahead of the expected 46.4%. Net income soared to $27.46 billion compared to $14.29 billion a year earlier, largely due to a one-time tax charge affecting last year’s results.
### Fiscal 2025 Performance Summary
For the full fiscal year 2025, Apple reported $416 billion in revenue, marking a 6% increase over 2024. While not record-shattering, the growth highlights steady momentum, led by an 8% year-over-year increase in the September quarter.
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