Apple’s earnings report and forecast for iPhone sales lead to a big move in the stock

Apple has released its fiscal fourth quarter 2025 earnings report, along with the full-year numbers for 2025. The number one question on everyone’s mind: How well did the iPhone perform during the quarter and the year?

### iPhone Sales and Revenue

From July through September, Apple generated $49.03 billion in iPhone sales, marking a 6.1% increase from the $46.22 billion recorded in last year’s fiscal fourth quarter. Although this figure fell short of Wall Street’s expectations for the quarter, it still set a new record for iPhone revenue in fiscal Q4.

Looking ahead, Apple CEO Tim Cook has forecasted even stronger results, expecting record iPhone revenue for the current quarter (fiscal Q1 2026).

For the entire fiscal year 2025, Apple reported iPhone sales totaling $209.59 billion. This represents a 4.2% rise over the $201.18 billion in iPhone revenue from fiscal 2024. The outlook remains positive, with Cook stating during the fiscal Q4 conference call that the upcoming fiscal Q1 of 2026 will deliver the highest revenue in Apple’s history, including its highest-ever iPhone revenue.

The iPhone 17 series got off to a strong start. Despite Apple cutting production of the iPhone Air, the other three models—the iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max—are believed to be outperforming their iPhone 16 counterparts in sales.

### Services Business Shows Strong Growth

Apple’s Services unit continued to shine, posting robust revenue growth. For fiscal Q4, Services generated $28.75 billion, a solid 15.1% year-over-year increase. Over the full fiscal year 2025, this segment brought in $109.16 billion, up 13.5% compared to the previous year.

Tim Cook emphasized the importance of the Services business, noting that unlike iPhone sales, it doesn’t rely on new device sales to succeed. With 1.56 billion active iPhone units worldwide, Services remains a crucial and growing part of Apple’s revenue model.

### Other Hardware Divisions

The iPad experienced a flat fiscal Q4 with $6.95 billion in revenue. For all of fiscal 2025, iPad sales totaled $28.02 billion, representing a modest 5% increase year-over-year.

Apple’s Wearables, Home and Accessories division—which includes products like the Apple Watch, AirPods, and HomePods—reported $9.01 billion in sales during fiscal Q4. This amount was slightly lower than the $9.04 billion generated in the same quarter last year. For the full year, this division posted $35.69 billion in revenue, down 3.6% from the previous fiscal year.

### Regional Performance

Apple’s revenue showed gains in nearly every region during fiscal Q4 and the full fiscal year. The Americas, Europe, Japan, and the Rest of Asia Pacific all reported higher revenue numbers. The only exception was Greater China, where sales were slightly down in fiscal Q4.

### Financial Highlights and Earnings Growth

Apple announced a fiscal Q4 revenue record of $102.47 billion, up 7.9% from $94.93 billion in the prior year. For the entire fiscal year 2025, revenue reached a record $416.16 billion, a 6.4% increase over fiscal 2024.

Fiscal Q4 net earnings were $27.47 billion, or $1.85 per diluted share—an impressive 90.7% increase compared to $14.74 billion, or 97 cents per share, in the previous year. For all of fiscal 2025, net profit rose 23.2% year-over-year to $112.01 billion, or $7.49 per diluted share, compared to $93.74 billion, or $6.08 diluted, in fiscal 2024.

### Executive Commentary

Kevan Parekh, Apple’s CFO, commented, “Our September quarter results capped off a record fiscal year, with revenue reaching $416 billion, as well as double-digit EPS growth. Thanks to our very high levels of customer satisfaction and loyalty, our installed base of active devices also reached a new all-time high across all product categories and geographic segments.”

### Market Reaction

Following the strong earnings report and optimistic outlook, Apple’s shares soared $6.38, or 2.35%, in after-hours trading to hit a record high of $277.78. Earlier in the day, ahead of the report, the stock had already risen by $1.70, or 0.63%, to $271.40. When regular trading opens at 9:30 a.m. in New York, Apple’s shares are expected to officially reach an all-time record high.

With record-breaking revenue and earnings, along with promising expectations for the coming quarters, Apple has once again demonstrated its dominant position in the tech industry. Stay tuned for more updates as the company continues to innovate and grow.
https://www.phonearena.com/news/apple-reports-fiscal-and-full-year-earnings_id175356

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