Apple Inc (AAPL) Q4 2025 Earnings Call Highlights: Record Revenue and Strong Services Growth

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Revenue: $102.5 billion, up 8% year-over-year, a September quarter record. Services Revenue: $28.8 billion, up 15% year-over-year, an all-time record. EPS: $1.85, a September quarter record. iPhone Revenue: $49 billion, up 6% year-over-year. Mac Revenue: $8.7 billion, up 13% year-over-year. iPad Revenue: $7 billion, flat year-over-year. Wearables, Home, and Accessories Revenue: $9 billion, flat year-over-year. Gross Margin: 47.2%, up 70 basis points sequentially. Operating Expenses: $15.9 billion, up 11% year-over-year. Net Income: $27.5 billion. Operating Cash Flow: $29.7 billion, a September quarter record. Cash and Marketable Securities: $132 billion. Capital Return: $24 billion returned to shareholders.

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Release Date: October 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Apple Inc (NASDAQ:AAPL) reported a record revenue of $102.5 billion for Q4 2025, marking an 8% increase year-over-year. Services revenue reached an all-time high of $28.8 billion, growing 15% from the previous year. The iPhone 17 series set a revenue record for the September quarter at $49 billion, with strong demand despite supply constraints. Apple's Mac revenue increased by 13% year-over-year, driven by the success of the MacBook Air. The company achieved all-time revenue records in emerging markets and an all-time record in India, showcasing strong international growth.

Negative Points

Apple Inc (NASDAQ:AAPL) faced supply constraints on several iPhone 16 and iPhone 17 models, impacting potential sales. The Greater China revenue declined by 4% year-over-year in the September quarter, primarily due to iPhone supply constraints. Operating expenses increased by 11% year-over-year, driven by higher R&D investments. Wearables, Home, and Accessories revenue was flat year-over-year, indicating potential stagnation in this segment. The company is facing $1.4 billion in tariff-related costs for the December quarter, impacting gross margins.

Q & A Highlights

Q: Tim, can you share why the iPhone 17 is experiencing such success? Is it due to the replacement cycle or specific features? A: Timothy Cook, CEO: It's all about the product lineup, which is our strongest ever. The iPhone 17 Pro is the most advanced phone we've made, and the iPhone Air offers incredible value by bringing features previously reserved for Pro models to the consumer lineup. This lineup is resonating globally.

Story Continues

Q: Kevan, how are you managing component cost inflation, especially with memory prices rising? A: Kevan Parekh, CFO: We have a world-class procurement team finding cost-saving opportunities. Currently, we're seeing a slight tailwind on memory prices. Our gross margin performance was strong, and we're managing costs effectively despite new products having a higher initial cost structure.

Q: Tim, can you discuss the iPhone's performance in China and expectations for the December quarter? A: Timothy Cook, CEO: The market in China is vibrant, with increased store traffic and strong reception for the iPhone 17. We expect to return to growth in Q1, driven by the positive reception of the iPhone there.

Q: What drove the strong Services revenue growth, and was it organic? A: Kevan Parekh, CFO: The strong performance was organically driven, with an all-time revenue record of $28.8 billion. We saw broad-based strength across categories and geographies, with no abnormal factors influencing the growth.

Q: How are you addressing iPhone supply constraints, and do you expect them to continue into the December quarter? A: Timothy Cook, CEO: We are currently constrained on several iPhone 17 models due to strong demand. We are working hard to balance supply and demand but are not predicting when this will happen.

Q: Can you elaborate on the role of AI in Apple's strategy and its impact on consumer behavior? A: Timothy Cook, CEO: AI is becoming a significant factor in consumer purchasing decisions. We are bullish on its growing influence and are integrating AI capabilities across our products to enhance user experiences.

Q: How is Apple managing its CapEx in light of increased AI demand? A: Kevan Parekh, CFO: We are increasing CapEx related to AI investments, building out our private cloud compute environment. We continue to leverage a hybrid model of first-party and third-party data centers, which has served us well.

Q: What is Apple's approach to AI and potential M&A in this space? A: Timothy Cook, CEO: We are developing Apple Foundation models and are open to M&A if it advances our roadmap. We continue to explore opportunities to enhance our AI capabilities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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