Apple Q4 Fiscal 2025 Earnings Call

Summary

Apple reported strong Q4 fiscal 2025 results with record revenue of $102.5 billion, up 8% year-over-year, and EPS of $1.85. The company achieved all-time records across multiple categories, with Services reaching $28.8 billion (up 15%) and iPhone setting a September quarter record at $49 billion despite supply constraints. CEO Tim Cook emphasized the strength of the iPhone 17 product lineup and Apple Intelligence features, while noting supply constraints on several iPhone models due to strong demand. The company expects its best-ever December quarter with 10-12% revenue growth. Geographically, Apple saw strong performance with records in emerging markets including India, though China declined 4% due primarily to supply constraints. The company expects China to return to growth in the December quarter. Services performance was particularly strong, surpassing $100 billion for the fiscal year with growth across most categories. Apple continues investing heavily in AI capabilities, including building out private cloud compute infrastructure with a new manufacturing facility in Houston. The company maintains its hybrid approach for data centers while increasing R&D spending significantly to support AI development and product roadmap investments.

Key Points

• Record Q4 revenue of $102.5 billion, up 8% year-over-year
• Services achieved all-time record of $28.8 billion, growing 15%
• iPhone set September quarter record at $49 billion despite supply constraints on iPhone 16 and 17 models
• Strong performance across most geographic markets with records in emerging markets and India
• Apple Intelligence features rolling out with personalized Siri expected next year
• New product launches including iPhone 17 family, M5 chip, and updated Apple Watch lineup
• China market expected to return to growth in December quarter after 4% decline
• Services revenue surpassed $100 billion for fiscal year, up 14%

Action Items

• Work to fulfill strong demand and resolve supply constraints on iPhone 17 models
• Continue building out private cloud compute infrastructure with Houston manufacturing facility
• Release personalized Siri features next year
• Scale production at new Houston factory for Apple Intelligence servers
• Continue investment in AI capabilities and R&D spending increases

Decisions

• Board declared cash dividend of $0.26 per share payable November 13, 2025
• Guidance for December quarter: 10-12% revenue growth, double-digit iPhone growth
• Operating expenses guidance of $18.1-18.5 billion for December quarter
• Gross margin guidance of 47-48% including $1.4 billion tariff impact
• Maintain hybrid approach for data centers (first-party and third-party capacity)

Participants