01—Abstract
Summary
Summary of the 10-Q filed May 2, 2025. Cited figures are marked; the original filing is the authoritative source.
Apple Inc. reported a solid performance for the second quarter and first six months of fiscal year 2025, demonstrating revenue growth driven primarily by its Services segment and strong sales in the Americas and Japan.
Total net sales for the quarter reached $95.4 billiona, a 5% increase year-over-year, with Services revenue growing 12% to $26.6 billion. The company also saw continued strength in iPhone sales, up 2% for the quarter, and significant growth in iPad sales, up 15%. Despite a decline in Greater China, where net sales were down 2% for the quarter and 7% for the year-to-date, overall global performance remained robust.
Profitability also saw a healthy increase, with net income rising to $24.8 billionb for the quarter, a 5% increase from the prior year, leading to diluted earnings per share of $1.65. The company's gross margin improved to 47.1% for the quarter, up from 46.6% in the prior year, largely due to strong performance in the Services segment.
Apple continued its commitment to shareholder returns, repurchasing $48.3 billionc of common stock in the first six months and announcing an additional $100 billion repurchase program alongside a dividend increase. The company anticipates these measures, along with strong operational cash flow, will be sufficient to meet its financial obligations and capital return plans.
02—Key points
Key Highlights
- Total net sales increased 5% year-over-year to $95.4 billion for the fiscal second quarter, driven by strong Services and iPhone performance.
- Services revenue grew 12% to $26.6 billion, underscoring its increasing importance to Apple's overall business.
- iPhone sales saw a modest 2% increase to $46.8 billion, with Pro models showing particular strength.
- Net income for the quarter rose 5% to $24.8 billion, resulting in diluted earnings per share of $1.65, up from $1.53 in the prior year.
- Gross margin improved to 47.1% from 46.6% year-over-year, primarily due to the high-margin Services segment.
- The company announced a new $100 billion share repurchase authorization and increased its quarterly dividend to $0.26 per share, signaling continued confidence and commitment to shareholder returns.
- Sales in Greater China experienced a decline, with net sales down 2% for the quarter and 7% year-to-date, indicating a challenging market environment in the region.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Apple Inc. kept $0.26.
- Revenue$95.36B100.0%
- Cost of revenue−$50.49B52.9%
- Gross profit$44.87B47.1%
- Operating costs−$15.28B16.0%
- Operating income$29.59B31.0%
- Interest, other & tax−$4.81B5.0%
- Net income$24.78B26.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed May 2, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $95.36B$90.75B | +5.1% |
| Cost of Revenue | $50.49B$48.48B | +4.1% |
| Gross Profit | $44.87B$42.27B | +6.1% |
| R&D Expenses | $8.55B$7.90B | +8.2% |
| SG&A Expenses | $6.73B$6.47B | +4.0% |
| Operating Expenses | $15.28B$14.37B | +6.3% |
| Operating Income | $29.59B$27.90B | +6.1% |
| Net Income | $24.78B$23.64B | +4.8% |
| EPS (Basic) | $1.65$1.53 | +7.8% |
| EPS (Diluted) | $1.65$1.53 | +7.8% |
| Shares Outstanding (Basic) | 14.99B15.41B | −2.7% |
| Shares Outstanding (Diluted) | 15.06B15.46B | −2.6% |
05—Questions
Frequently Asked Questions
What was Apple's revenue performance in the second quarter of fiscal year 2025?
Apple reported total net sales of $95.4 billion for the fiscal second quarter ended March 29, 2025, representing a 5% increase compared to $90.8 billion in the same period last year. This growth was primarily driven by a 12% increase in Services revenue to $26.6 billion and a 2% increase in iPhone revenue to $46.8 billion.
How did Apple's profitability change in this quarter?
Apple's net income increased by 5% to $24.8 billion for the second quarter of fiscal year 2025, compared to $23.6 billion in the prior year's quarter. Diluted earnings per share rose to $1.65 from $1.53 in the prior year, reflecting both improved net income and a reduction in outstanding shares.
What is the outlook for Apple's Services segment?
The Services segment continues to be a strong growth driver for Apple, with net sales increasing by 12% to $26.6 billion in the second quarter of fiscal year 2025. This growth was attributed to higher net sales from advertising, the App Store, and cloud services, and the segment also maintained a strong gross margin of 75.7%.
What are the key risks or challenges highlighted in this report?
Key risks mentioned include ongoing legal proceedings such as the EU Digital Markets Act investigations and the U.S. Department of Justice antitrust lawsuit, as well as potential impacts from new tariffs and trade measures. Market risks related to foreign currency fluctuations and interest rate changes are also noted, although the company employs hedging strategies. Performance in specific regions, like the noted decline in Greater China, also presents a challenge.
06—Continue