Today, second-quarter 2025 earnings are out and Apple reported record revenue of $95.4 billion, a 5% year-over-year gain. The diluted earnings per share was $1.65 an 8% year-over-year gain.
Today Apple is reporting strong quarterly results, including double-digit growth in Services. We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we’ve cut our carbon emissions by 60 percent over the past decade.
These results, which beat Wall Street expectations, may strike some as odd given the overhang of tariffs on goods entering the U.S., but it’s the threat and delays that have caused consumers to accelerate purchases, pulling sales into the last quarter that might have been deferred otherwise. It’s a little like COVID, which caused a similar tech purchasing spree. However, sales pulled into the last quarter are sales that won’t be made later, especially if the U.S. government follows through and imposes tariffs on Apple products.
Another threat to future earnings is the decision by Judge Yvonne Gonzalez Rodgers. That decision has the potential to upend the dynamics of the App Store, but it’s going to take a while before any effects are felt in earnings because, as the Court found, few developers currently offer links to goods outside the App Store.
So, for now, Apple’s earnings are good and its stock price is stable, but the threat of tariffs and the disillusionment of developers are very real storm clouds on Apple’s horizon that very well may have a negative impact on its future earnings. Come back in three months to see what happens.
