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Apple reports Q4 earnings and revenue slightly above Wall Street estimates

The iPhone maker reported its FY 25 fourth-quarter earnings Thursday.

Apple reported earnings Thursday that beat analysts’ expectations. Revenue for the iPhone maker’s fourth quarter was $102.5 billion, slightly above the $102.2 billion analysts surveyed by FactSet expected and up 8% year over year.

Apple’s diluted earnings per share were $1.85, compared with Wall Street’s $1.78 forecast for the quarter ended in September, which includes a couple weeks’ worth of new iPhone 17 sales.

The company’s fourth-quarter earnings give an indication of how the latest iPhone — which is responsible for most of Apple’s product revenue and nearly half its total revenue — might perform in the company’s all-important holiday quarter. The stock was recently propelled above a $4 trillion market cap, in part by leading indicators that suggested iPhone 17 sales were ahead of last year’s model.

During the company’s earnings call today, investors will be looking for more details on this quarter’s expected iPhone sales as well as for updates on Apple’s AI progress, which has lagged its peers. They will also be paying attention to how tariffs have affected the iPhone maker; on the company’s last earnings call, management said it expected tariffs could cost $1.1 billion during this past quarter.

For Q4, the company’s iPhone sales were $49 billion, shy of the analyst consensus estimate of $50.1 billion but up 6% from the same quarter last year. Meanwhile, the revenue from Apple’s Services division was $28.8 billion, slightly above the Street’s $28.2 billion forecast. Its Services revenue, while less visible, is increasingly important to the company’s top line. That segment includes everything from the revenue it makes from the App Store and iCloud storage to Apple TV and the ~$20 billion a year Google pays it to be the default search engine on its products.

“Today, Apple is very proud to report a September quarter revenue record of $102.5 billion, including a September quarter revenue record for iPhone and an all-time revenue record for Services,” CEO Tim Cook said in the earnings release.

China sales were a disappointing $14.5 billion, below analysts’ expectation of $15.5 billion.

The stock is up about 3.5% aftermarket.

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Tesla just recalled its beleaguered Cybertruck for the 10th time since the vehicle was introduced two years ago. This time the company recalled about 6,000 of the “apocalypse-proof” vehicles due to what the National Highway Traffic Safety Administration says is an improperly installed “optional off-road light bar accessory” that could become disconnected from the windshield while driving, and could “create a road hazard for following motorists and increase their risk of a collision.”

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RBC Capital lowered its price target to $810 from $840. Bank of America Securities lowered its price target to $810 from $900. Barclays, JPMorgan, Deutsche Bank, and Wells Fargo also lowered their price targets on the company.

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