Apple Q3 revenue crushes estimates by nearly $5B, shares edge higher

Apple (NASDAQ:AAPL) reported its third quarter fiscal 2025 financial results, which crushed estimates due to higher-than-expected iPhone sales and prompted the stock to edge higher during post-market trading.

For the quarter ended June 28, Apple reported earnings per share of $1.57, which was more than the consensus estimate of $1.43.

Revenue for the Cupertino company totaled $94.04B and was nearly $5B more than the estimate of $89.16B.

Much of the revenue beat came from iPhone sales, which shipped at much higher volumes than the market expected. iPhone revenue totaled $44.58B, which was a year-over-year increase of 13% and $4B more than the consensus estimate. Mac revenue was $8.05B, which surpassed the estimate of $7.3B. However, iPad and the Wearables, home and accessories segments demonstrated year-over-year declines of 8% and 8.6%, respectively, and came up just short of the estimates.

Meanwhile, the vital Services segment produced revenue of $27.42B, which was more than the consensus of $26.85B.

“Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment,” said Apple CEO Tim Cook.

“We are very pleased with our record business performance for the June quarter, which generated EPS growth of 12 percent,” said Kevan Parekh, Apple’s CFO. “Our installed base of active devices also reached a new all-time high across all product categories and geographic segments, thanks to our very high levels of customer satisfaction and loyalty.”

Apple’s board of directors also declared a cash dividend of $0.26 per share of the company’s common stock.

“These results were strong, largely benefiting from lapping easier comparables,” said Julian Lin, Investing Group Leader for Best Of Breed Growth Stocks. “The stock is evidently burdened by an uncertainty overhang with regards to how tariffs impact the picture long term, something that isn’t likely to be addressed so quickly.”