Apple Inc. reported record fiscal first-quarter earnings for 2025, with revenues reaching $124.3 billion, a 4% year-over-year increase, despite a slight dip in iPhone sales.
Apple posts record earnings for fiscal Q1 2025
The company’s net income was $36.33 billion, translating to an all-time high of $2.40 per share, up from $33.92 billion or $2.28 per share in the same quarter a year earlier. This result surpassed market expectations, as projected by Visible Alpha.
Services revenue grew by 14% year-over-year, totaling $26.34 billion. Additionally, Mac and iPad sales increased significantly, with revenues of $8.99 billion (a rise of over 15%) and $8.09 billion (up 15%), respectively. In contrast, iPhone sales slightly declined by just under 1% to $69.14 billion, which fell short of analyst predictions. This quarter marked the first full period since the iPhone 16 launch in September 2024.
Sales in the Greater China region were challenging, registering an 11% decline compared to the prior year, attributed to increased competition from local manufacturers like Vivo and Huawei and changes in channel inventory.
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CEO Tim Cook noted during the earnings call that iPhone 16 sales have outperformed the iPhone 15’s post-launch performance in markets where Apple Intelligence, an advanced feature set, is available. However, regulatory hurdles have prevented its rollout in China, influencing sales. Since its launch, Apple has seen a record number of device upgrades, pushing the total number of active Apple devices to an all-time high of 2.35 billion.
Looking ahead, Apple projects that fiscal second-quarter revenue will grow in the mid-to-low single digits, consistent with market expectations, and gross margins will fall between 46.5% and 47.5%, exceeding analyst forecasts.
Following the earnings report, Apple shares rose approximately 3% in extended trading, and the company’s stock has appreciated over 27% over the past year.
Financial metrics and shareholder returns
Key financial metrics from the earnings release included a gross margin of 46.9%, which marked a sequential increase of 70 basis points. Operating cash flow was recorded at $29.9 billion. The company also announced a return of over $30 billion to shareholders, which included $23.3 billion in share repurchases.
Beyond financial performance, Apple’s board declared a cash dividend of $0.25 per share, set to be paid on February 13, 2025, to shareholders record as of February 10, 2025. The company’s strong performance underscores its dominant position across various markets, despite facing competition and challenges in certain regions.
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Featured image credit: Apple
