Following news that Apple will be forced to allow external purchase links inside apps and could face criminal charges over its battle with Epic Games, the company announced some good news on Thursday. In the second quarter 2025, Apple posted revenue of $95.4 billion, a 5 percent increase year over year and a second-quarter all-time high. Quarterly earnings per diluted share are $1.65, up 8 percent year over year. The company reported $24.8 billion in profit.
Apple beat the analysts’ predicted revenue of $94.68 billion expected, and $1.63 diluted earnings per share. However, the stock took a tumble in after-hours trading as investors weighed the current sales figures against the tariff turmoil. CEO Tim Cook made a statement during the Apple earnings call that the company expects an estimated charge of $900 million due to the tariffs next quarter, assuming that the tariffs do not change.
The iPad led the charge this quarter with a 16 percent increase year-over-year. Apple released the M3 iPad Air and the 11th-generation iPad in March, giving its sales numbers a boost. Services also had a double-digit quarter, posting an 11 percent increase over the same quarter a year ago for a record high. This quarter saw the release of the much-anticipated second season of Severance on Apple TV+, which may have positively affected Apple’s Services division. The Mac saw a 6 percent increase, thanks to the release of the M4 MacBook Air. iPhone sales were up just 2 percent in a quarter that saw the release of the iPhone 16e. Wearables sales saw a small dip. Cook stated that Apple doesn’t believe that the threat of tariffs influenced buyer behavior for this past quarter.
How the quarter ended year-over-year for Apple:
- iPhone: $47 billion (up from $46 billion)
- iPad: $6.4 billion (up from $5.6 billion)
- Mac: $8 billion (up from $7.5 billion)
- Wearables: $7.5 billion (down from $7.9 billion)
- Services: $27 billion (up from $24 billion)
“Our March quarter business performance drove EPS growth of 8 percent and $24 billion in operating cash flow, allowing us to return $29 billion to shareholders,” said Kevan Parekh, Apple’s CFO. “And thanks to our high levels of customer loyalty and satisfaction, our installed base of active devices once again reached a new all-time high across all product categories and geographic segments.”
Apple declared a cash dividend of $0.26 per share of common stock payable on May 16 to shareholders of record at the close of business on May 12, 2025.
The earnings call comes hours after a U.S. court orders Apple to allow external purchase links in apps and a U.K. court ruled against Apple in a patent lawsuit. Earlier this week, the European Union fined Apple €500M ($570M) for violations of the Digital Markets Act.