Apple CEO Tim Cook attends the world premiere of “F1” at Times Square in New York on June 16, 2025.
Angela Weiss | AFP | Getty Images
Apple reported third-quarter earnings on Thursday that topped Wall Street expectations for profit and revenue.
iPhone sales grew 13% year-over-year and overall revenue grew 10% — Apple’s largest quarterly revenue growth since December 2021.
Apple shares rose in after-hours trading on Thursday and took a leg higher after Apple provided data points about the company’s performance in the September quarter.
Here’s how Apple did versus consensus estimates for the quarter ending June 28:
- Earnings per share: $1.57 vs. $1.43 expected
- Revenue: $94.04 billion vs. $89.53 billion expected
- iPhone revenue: $44.58 billion vs. $40.22 billion expected
- Mac revenue: $8.05 billion vs. $7.26 billion expected
- iPad revenue: $6.58 billion vs. $7.24 billion expected
- Other Products revenue: $7.40 billion vs. $7.82 billion expected
- Services revenue: $27.42 billion vs. $26.80 billion expected
- Gross margin: 46.5% vs. 45.9% expected
The company provided what it calls color about the company’s performance during the September quarter so far on a call with analysts. Apple said that it expected mid-to-high single digit increases in overall revenue, services growth to be similar to this quarter’s 13%, and for gross margin to be between 46 and 47 percent, even including costs related to tariffs.
Apple incurred $800 million in tariff costs in the June quarter, Cook said on Thursday. That came in lower than the $900 million estimate the company provided in May. For the September quarter, assuming no changes, Apple could incur about $1.1 billion in tariff costs, Cook said.
Apple reported $1.57 in earnings per share or $24.43 billion of net income during the quarter, versus $1.40 per share or $21.45 billion in the year-ago period.
“It was an exceptional quarter by any measure,” Apple CEO Tim Cook told CNBC’s Steve Kovach.
Cook said that about 1 of the company’s 10 percentage points of revenue growth could be attributed to customers buying more products to get ahead of potential tariffs.
The company’s most important business remains the iPhone, which saw 13% growth on an annual basis during the quarter to $44.58 billion in sales.
Cook said that iPhone revenue was strong because the iPhone 16 is more popular compared to the iPhone 15 devices on sale last year at the same time. Cook said iPhone 16 sales were up “strong double digits” versus its predecessor. Cook specifically highlighted popularity among current iPhone users upgrading to a new one.
Apple’s Mac business grew the fastest of any of Apple’s units during the June quarter, growing nearly 15% to $8.05 billion in revenue. Apple released updated MacBook Air laptops, its best-selling Mac, just before the quarter started.
The company’s services business, which includes the company’s warranties, content subscriptions, licensing deals with Google, and iCloud continued to grow to $27.42 billion in the period, a 13% increase. Cook highlighted growth in the company’s iCloud subscriptions and said App Store revenue grew “double digits” during the quarter.
The two tougher spots in Apple’s report were iPad sales and the company’s other products division, which it sometimes calls its wearables. It consists of Apple Watch, AirPods, and other accessories. Revenue for iPad was down 8% to $6.58 billion, despite the company launching a low-cost iPad in March. Apple’s wearables unit declined 8.64% to $7.4 billion during the quarter.
Apple also saw success in China during the quarter, with sales rising 4% on an annual basis to $15.37 billion. Apple reports its sales from China, Hong Kong and Taiwan in the same unit. It’s a reversal from the past two quarters, where Apple’s China sales declined 2% in Apple’s second fiscal quarter and 11% in the first quarter.
Cook said a Chinese subsidy for some devices helped Apple in the region.
“The subsidy does apply to some of our products, and it clearly helps,” Cook said.
‘Significantly growing’ AI investments
In June, Apple held its annual Worldwide Developers Conference, or WWDC, where it unveiled new software for iPhones, Macs and other devices, but the company’s artificial intelligence announcements at the event underwhelmed investors.
Cook on Thursday said that Apple views AI as “one of the most profound technologies of our lifetime.”
“We are significantly growing our investments,” Cook said about AI. “We’re embedding it across our devices, across our platforms and across the company.”
Cook said that Apple had acquired “around” seven companies so far this year although none had been “huge in terms of dollar amount.”
“We’re open to M&A that accelerates our roadmap,” Cook said. Apple had about $133 billion in cash on hand at the end of the June quarter.
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