Apple beats Q4 estimates, lifts outlook despite China drag and iPhone miss
By Iain Gilbert
Date: Friday 31 Oct 2025
(Sharecast News) - Apple posted stronger-than-expected fourth-quarter earnings on Thursday and issued a bullish forecast for its December quarter, as services and Mac sales offset softer-than-expected iPhone revenues.
Apple said net income rose to $27.46bn in the quarter from $14.29bn a year earlier, when results were impacted by a one-off tax charge, while revenue for fiscal 2025 rose 6% to $416bn, with September-quarter sales up 8% year-on-year.
iPhone revenues grew 6% to $49.03bn in Q4, offering an early glimpse into iPhone 17 demand, though below analyst forecasts of $50.19bn, while iPad sales were flat at $6.95bn, ahead of an October refresh.
Services revenue jumped 15% in Q4 to $24.97bn, making it Apple's fastest-growing segment, Mac sales rose 13% to $8.72bn, driven by strong demand for the refreshed MacBook Air, and Apple's Other Products vertical, which included Apple Watch and Vision Pro, edged down to $9.04bn.
Sales in Greater China, which includes Hong Kong and Taiwan, fell 4% in Q4 to $14.5bn, while Apple also noted that it had absorbed $1.1bn in additional costs from Donald Trump's tariffs but had not adjusted pricing, instead opting to absorb the tariffs in gross margins, which came to 47.2% for the quarter, ahead of expectations of 46.4%.
Looking ahead, chief executive Tim Cook said revenues will increase by at least 10% in the first quarter of FY26.
"We expect total company revenue to grow by 10 to 12% year over year, we expect iPhone revenue to grow double digits, year over year, and we expect that that would make the December quarter the best ever in the history of the company," Cook said.
As of 0750 GMT, Apple shares were up 2.72% in pre-market action at $278.78 each.
Reporting by Iain Gilbert at Sharecast.com
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