Apple closed fiscal 2025 with record-breaking results, underscoring the company’s operational strength and product leadership across categories. For Q4, Apple reported $102.5 billion in revenue (+8% y/y) and $1.85 EPS (+13% y/y), both September-quarter records. For the full fiscal year, revenue reached an all-time high of $416 billion, driven by double-digit growth in iPhone, Mac, and Services, with record performance in nearly every major market.

CEO Tim Cook emphasized the resilience of Apple’s ecosystem and the growing installed base, while CFO Kevin Parekh highlighted sustained margin expansion and disciplined investment, particularly in AI and Apple Silicon infrastructure. Despite a modest decline in Greater China in Q4, Apple reaffirmed confidence in the region’s rebound, pointing to a strong start for the iPhone 17 cycle and surging store traffic.

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Key Takeaways

• Total Revenue: $102.5B in Q4 (+8% y/y) and $416B for FY2025 (record high).

• Net Income: $27.5B in Q4; full-year all-time record, up double digits y/y.

• EPS: $1.85 for Q4 (+13% y/y adjusted), with full-year record EPS.

• Gross Margin: 47.2% for Q4; FY2025 gross margin also reached record levels, driven by Services mix.

• Services: Surpassed $100B in annual revenue (+14% y/y)  entirely organic growth across all major categories.

• Installed Base: All-time highs across all devices and geographies, underscoring Apple’s ecosystem lock-in.

• Shareholder Returns: $24B returned in Q4; $110B+ in FY2025, combining buybacks and dividends.

• China: Down 4% in Q4 but expected to return to growth in Q1 FY2026; Tim Cook described the market as “incredibly vibrant and dynamic.” HIsorically Q1 is the strongest quarter in China thanks to Chinese New Year which drives strong promotions and spending.

• Investments: $12.7B in FY2025 CapEx, including Apple’s new AI data center buildout and Private Cloud Computeinfrastructure.

 

What’s Significant

• Services Cross $100 Billion Milestone: Services grew 14% y/y to surpass $100B in annual revenue for the first time, entirely organic, with double-digit growth in App Store, advertising, cloud, payments, and Apple TV+

• AI-Driven Platform Strength: Cook emphasized that Apple Intelligence is being embedded across products, from on-device visual intelligence and live translation to a more personalized Siri launching in 2026. As mentioned last quarter, Apple’s progress on enhancing Siri remains important to sustaining user engagement across its hardware ecosystem. The company also has the advantage of time, as the broader consumer understanding of AI’s value beyond productivity is still developing. Apple continues to be well positioned to deliver a more personal and privacy-focused AI experience, supported by its long-standing insight into how people use its devices and services.

• Apple Silicon Edge: New A19 Pro and M5 chips delivered three-and-a-half times faster AI performance than the previous generation, anchoring Apple’s competitive lead. he rapid pace of innovation in Apple Silicon is a clear demonstration that the company has cracked the code on the most critical enabler of on-device AI. As Apple begins rolling out products powered by its first in-house modem, we should expect a similar trajectory, one that strengthens Apple’s technological self-sufficiency and deepens its control over the full hardware-to-software stack.

• Broad-Based Growth: FY2025 saw all-time revenue records in emerging and developed markets alike — including India, Japan, Latin America, and Western Europe

• Strategic U.S. Investment: Apple announced a $600 billion commitment over four years toward advanced manufacturing, silicon engineering, and AI infrastructure,  including a new Houston facility producing servers for Apple’s private cloud. Cook implied that Apple’s infrastructure priorities are distinct from cloud hyperscalers, stating the company is investing to “lead in innovation and efficiency, not scale for its own sake.” He underscored that Apple’s infrastructure strategy is about enabling privacy-preserving computation, integrated with Apple Silicon, rather than competing head-to-head in general cloud service

Financial Performance:

• Revenue: Apple reported $102.5 billion in Q4 FY2025, an 8% year-over-year increase and a new September-quarter record. For the full fiscal year, total revenue reached $416 billion, the highest in the company’s history, driven by growth in iPhone, Mac, and Services across nearly all geographies.

• Net Income: Quarterly net income was $27.5 billion, up double digits year over year. For the full year, Apple achieved an all-time record net profit, reflecting strong execution, margin expansion, and disciplined operating expenses.

• Earnings Per Share (EPS): $1.85 diluted EPS in Q4, a 13% increase year over year when adjusted for a one-time 2024 charge. On a full-year basis, EPS reached a record high, growing at a faster pace than revenue due to margin leverage and share repurchases.

• Gross Margin: Company-wide gross margin reached 47.2%, up 70 basis points sequentially and above guidance. Product gross margin improved to 36.2%, while Services margin was 75.3%, reflecting the strength of Apple’s high-margin ecosystem. For the full year, gross margin also reached a historic high, aided by product mix and operational efficiency.

• Operating Cash Flow: Apple generated $29.7 billion in Q4 operating cash flow, a record for the September quarter. The company’s consistent cash generation underpins its capacity for reinvestment and capital returns.

• Capital Expenditures (CapEx): FY2025 CapEx totaled $12.7 billion, primarily directed toward manufacturing capacity, silicon engineering, and data infrastructure, including the expansion of Apple’s Private Cloud Compute facilities.

• Cash Position and Debt: Apple ended FY2025 with $132 billion in cash and marketable securities and $99 billion in total debt, resulting in a net cash position of $34 billion — continuing progress toward long-term net cash neutrality.

• Shareholder Returns: During Q4, Apple returned $24 billion to shareholders, including $3.9 billion in dividends and $20 billion in share repurchases. For the full year, total capital returned exceeded $110 billion, underscoring Apple’s consistent commitment to shareholder value.

Business Highlights:

iPhone

• $49B in Q4 revenue (+6% y/y); all-time annual record for iPhone.

• The iPhone 17 lineup was described as Apple’s “strongest ever,” with record upgrader levels and strong consumer demand globally.

• Cook noted demand was “outpacing supply,” emphasizing constraints were demand-driven, not production-related.

• iPhone share grew in all major markets, including urban China, the U.S., and Japan according to World Panel.

Mac

• $8.7B in Q4 (+13% y/y); FY2025 Mac revenue up double digits overall.

• Growth led by MacBook Air and M5 Pro devices; ~50% of buyers new to Mac.

• Cook called FY2025 the “most successful year ever for Mac”, citing adoption across enterprise and education.

iPad

• $7B in Q4 (flat y/y); steady full-year performance despite tough compares.

• iPadOS 26 and M5 iPad Pro delivered AI enhancements, maintaining engagement and driving high satisfaction (98% U.S. rating).

Wearables, Home & Accessories

• $9B in Q4 (flat y/y); full-year performance held steady.

• Apple Watch Ultra 3, Watch Series 11, and AirPods Pro 3 drove upgrades and new customer acquisition — over half of buyers were new to the product.

• Cook highlighted new hypertension notifications and SleepScore as examples of Apple’s AI integration into health.

Services

• $28.8B in Q4 (+15% y/y); $100B+ in FY2025, fastest Services growth in two years.

• Growth was broad-based: all-time highs in App Store, Payments, Cloud, Music, and TV+.

• Apple TV+ earned 22 Emmy Awards, and struck a new partnership with Formula One for exclusive coverage in 2026

• Cook said: “Apple is becoming an essential part of people’s daily digital life — not just in devices, but in services they trust.”

Outlook:

Apple enters fiscal 2026 from a position of strength, expecting revenue growth of 10–12% year over year in the December quarter, a trajectory that would mark its best quarter ever, both for the company and for the iPhone. Management anticipates double-digit iPhone growth, led by sustained demand for the iPhone 17 lineup, particularly the Pro and Pro Max models, which remain supply-constrained heading into the holiday season. The company expects gross margins between 47% and 48%, including approximately $1.4 billion in tariff-related costs, while operating expenses are forecast between $18.1 and $18.5 billion. Apple’s leadership emphasized that Greater China is expected to return to growth in Q1, buoyed by strong momentum in urban markets, where iPhone share continues to expand, and by increased store traffic and favorable consumer sentiment. Importantly, the later timing of Chinese New Year in 2026gives Apple additional time to address supply constraints — particularly around the iPhone Pro Max — and better prepare channel inventory ahead of the seasonal demand spike. On a strategic level, the company will continue to prioritize investments in AI infrastructure, Apple Silicon capacity, and its Private Cloud Compute buildout, maintaining its measured approach to capital deployment while deepening integration across hardware, software, and services.

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