Apple Inc (NASDAQ:AAPL) Reports Mixed Q4 2025 Results with EPS Beat and Record Services Revenue

Apple Inc (NASDAQ:AAPL) reported financial results for its fiscal fourth quarter of 2025, delivering a performance that has elicited a notably positive response from investors in after-hours trading. The technology giant posted revenue and earnings per share figures that painted a complex picture, surpassing expectations on profitability while experiencing a slight shortfall in the top-line revenue number compared to analyst forecasts.

Quarterly Performance Versus Expectations

The company announced quarterly revenue of $102.5 billion, an 8% increase compared to the same quarter last year. However, this figure came in below the analyst consensus estimate of $104.2 billion. On the profitability front, Apple reported adjusted earnings per share of $1.85, which exceeded the estimated $1.80 and represented a 13% year-over-year increase.

Key financial metrics from the quarter include:

• Reported Revenue: $102.5 billion
• Estimated Revenue: $104.2 billion
• Reported EPS (adjusted): $1.85
• Estimated EPS: $1.80

The divergence between the revenue miss and the EPS beat suggests the company maintained strong operational efficiency and cost management, allowing it to translate a slightly lower-than-expected sales figure into higher-than-anticipated profitability.

Market Reaction and Price Action

The market's initial reaction to the earnings report has been decisively positive. Following the release, Apple's stock rose over 4% in after-market trading. This upward movement indicates that investors are focusing more on the earnings beat and the company's forward-looking statements rather than the modest revenue shortfall. The positive sentiment is further supported by the stock's recent performance, showing modest gains over the past month.

Earnings Report Highlights

Apple's press release emphasized several record-breaking achievements for the September quarter. Chief Executive Officer Tim Cook highlighted a "September quarter revenue record" driven by record iPhone sales and an all-time high for the Services division. The company's installed base of active devices also reached a new all-time high across all product categories and geographic segments, underscoring the durability of its ecosystem.

From a product category perspective:

• iPhone revenue reached $49.0 billion, a record for a September quarter.
• Services revenue hit $28.8 billion, an all-time record for any quarter.
• Mac revenue was $8.7 billion, up from $7.7 billion in the year-ago quarter.
• Wearables, Home and Accessories revenue came in at $9.0 billion.

The company's board of directors declared a cash dividend of $0.26 per share, payable to shareholders of record as of November 10, 2025.

Looking Ahead

While the press release did not provide a specific quantitative financial outlook for the coming quarters, the optimistic commentary from leadership about the "most extraordinary lineup of products" heading into the holiday season appears to have resonated with the market. Analyst estimates for the upcoming fiscal year project continued growth, with sales expectations for the full year 2026 set at approximately $448.0 billion. For the immediate next quarter (Q1 2026), analysts are forecasting revenue of around $134.2 billion.

For a more detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the AAPL earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The performance data and market reactions are based on available information and are subject to change. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.