Technology giant Apple has unveiled its fiscal second-quarter earnings, revealing significant growth in revenue and profits. However, after-hours trading saw a drop in stock prices, leading investors to react cautiously.
Apple reported revenue of $95.4 billion for its fiscal second quarter, reflecting a 5% increase compared to the same period last year. Diluted earnings per share rose to $1.65, an 8% improvement year-over-year. This data surpassed Wall Street expectations but did not shield the stock from a post-earnings dip, with shares falling by $8.48, or 4%, to $204.84.
In a highlight of the earnings report, Apple recorded $46.84 billion in iPhone revenue, marking a 1.9% annual rise. This figure was $1 billion higher than the analysts’ consensus estimate of $45.84 billion—underscoring Apple’s robust performance in the smartphone market.
The release of the new seventh-generation M3 iPad Air and 11th-generation iPad contributed to an unexpected boost in tablet sales, generating $6.4 billion in revenue. This figure exceeded Wall Street’s forecast of $6.2 billion, showcasing a 15.1% increase year-over-year, even with the products only being available for two weeks during the quarter.
Apple’s Services segment generated $26.65 billion, slightly below expectations of $26.70 billion but still up 11.6% from the previous year. While this segment remains Apple’s second-largest revenue driver after the iPhone, the Wearables, Home, and Accessories category fell short, bringing in $7.52 billion, below the anticipated $7.95 billion.
Geographically, Apple saw revenue growth in four of five key markets: the Americas, Europe, Japan, and the rest of Asia-Pacific. However, sales in Greater China slipped to $16 billion from $16.37 billion, indicating challenges in that crucial market.
During the earnings call, CEO Tim Cook noted that tariffs had a limited impact on results due to efficient supply chain management. He highlighted the importance of global diversification, stating that over half of U.S. iPhone sales now come from India, while production for other products is largely based in Vietnam.
“We will manage the company with thoughtful and deliberate decisions, focusing on long-term investments and innovation,” Cook affirmed.
In a move to bolster investor confidence, Apple’s board approved a stock repurchase program worth $100 billion, down from last year’s $110 billion. Additionally, a quarterly dividend has been declared at 26 cents per share, a 4% increase, to be paid on May 15, 2025.
Apple’s latest earnings report reflects resilient consumer demand in a competitive tech landscape. While the initial stock reaction might suggest caution, the brand’s consistent growth, particularly in iPhone sales and new product launches, positions it favorably within the retail sector. This performance is a testament to Apple’s enduring appeal and innovative capabilities, which could further influence consumer trends moving forward.
