Apple forecast income for the present quarter ending in September effectively above Wall Avenue’s estimates on Thursday, sending shares up regardless of a warning from CEO Tim Cook dinner that US tariffs would add $1.1 billion in prices over the interval.
Because the centerpiece of US President Donald Trump’s commerce battle, these tariffs price Apple $800 million within the June quarter and spurred some prospects to purchase iPhones in late spring this yr. These purchases helped Apple’s fiscal third-quarter gross sales beat expectations by the most important share in no less than 4 years, in line with LSEG.
The corporate nonetheless forecast progress, although, with Chief Monetary Officer Kevan Parekh saying the corporate expects income progress for the present quarter within the “mid to excessive single digits,” which might exceed the three.27 % progress to $98.04 billion that analysts anticipated, in line with LSEG information.
Apple reported $94.04 billion in income for its fiscal third quarter ended on June 28, up almost 10 % from a yr earlier and beating analyst expectations of $89.54 billion, in line with LSEG information. Its earnings per share of $1.57 topped expectations for $1.43 per share.
Apple shares had been up 3 % in after-hours buying and selling, extending positive factors after Apple offered its forecast.
Gross sales of iPhones, the best-selling product for the corporate primarily based in Cupertino, California, had been up 13.5 % to $44.58 billion, beating analyst expectations of $40.22 billion.
Apple has been shifting manufacturing of merchandise certain for the US, sourcing iPhones from India and different merchandise akin to Macs and Apple Watches from Vietnam.
The final word tariff charges many Apple merchandise might face stay in flux, and plenty of of its merchandise are at present exempt. Gross sales in its Americas phase, which incorporates the US and will face tariff impacts, rose 9.3 % to $41.2 billion.
In Larger China, the place Apple has confronted lengthy delays in approval to introduce AI options on its units, gross sales had been $15.37 billion, up from a yr in the past and above expectations of $15.12 billion, in line with a survey of 5 analysts from information agency Seen Alpha.
That achieve was a turnaround from a year-over-year decline in China gross sales within the March quarter.
In a convention name with analysts, Cook dinner mentioned a few of that was because of a subsidy program in China to assist revive the smartphone market, which boosted a few of Apple’s merchandise.
“It was the primary full quarter of the subsidy taking part in out,” Cook dinner informed analysts.
Early Purchases
In an interview with Reuters, Cook dinner mentioned the corporate set seasonal data for upgrades of iPhones, Macs and Apple Watches. He mentioned Apple estimates about 1 share level of its 9.6 % of gross sales progress within the quarter was attributable to prospects making purchases forward of potential tariffs.
“We noticed proof within the early a part of the quarter, particularly, of some pull-ahead associated to the tariff bulletins,” Cook dinner informed Reuters, although he additionally mentioned the energetic person base for iPhones hit a report excessive in all geographies.
The US remains to be negotiating with each China and India, with Trump saying India might face 25 % tariffs as early as Friday. Nonetheless, analysts mentioned India might nonetheless retain price benefits for Apple in the long run.
“The pull-forward in demand because of tariffs was considerably anticipated given the uncertainty round pricing. Nonetheless, it is necessary to place this in context as that is sometimes a sluggish quarter for Apple, but they nonetheless delivered distinctive outcomes with iPhone progress,” Emarketer analyst Jacob Bourne mentioned.
Tariffs are solely one in every of Apple’s challenges. The corporate faces competitors from rivals akin to Samsung Electronics Co in a troublesome marketplace for premium-priced cell phones. On the software program entrance, Apple faces challenges from Alphabet, which is shortly weaving AI options into its competing Android working system.
Whereas AI leaders Microsoft and Nvidia have seen their inventory market values soar to report highs, Apple’s shares have fallen 17 % in 2025, with traders involved in regards to the affect of tariffs, and about what they view as sluggish progress integrating AI options into its merchandise.
Apple has delayed the discharge of an AI-enriched model of Siri, its digital assistant, however Cook dinner mentioned the corporate is “making good progress on a personalised Siri.” He additionally mentioned Apple, which has to this point not engaged within the huge capital expenditures of its Massive Tech rivals to pursue AI, is “considerably rising” its investments in synthetic intelligence.
“Apple has all the time been about taking essentially the most superior applied sciences and making them straightforward to make use of and accessible for everybody, and that is on the coronary heart of our AI technique,” Cook dinner mentioned.
Apple faces regulatory rulings in Europe that threaten to undermine its profitable App Retailer enterprise. Apple mentioned gross sales from its companies enterprise, which incorporates the App Retailer in addition to music and cloud storage, had been $27.42 billion, topping analyst expectations of $26.8 billion.
Gross sales of wearables akin to AirPods and Apple Watches had been $7.4 billion, lacking estimates of $7.82 billion. Mac gross sales of $8.05 billion beat expectations of $7.26 billion, whereas iPads hit $6.58 billion in gross sales, lacking expectations of $7.24 billion.
Apple mentioned gross margins had been 46.5 % within the fiscal third quarter, beating analyst expectations of 45.9 %, in line with LSEG estimates. The corporate forecast gross margins for the present quarter of 46 % to 47 %, with your entire vary above estimates of 45.9 %, in line with LSEG information.
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