Apple Posts Record Quarterly Revenue of $102.5 Billion Despite Weakness in China
Key Facts
Apple reported revenue of $102.5 billion on Oct. 30, 2025, in its fiscal fourth quarter, up 8% year over year, for the three months ended Sept. 27. The company posted diluted earnings per share of $1.85 and described quarterly revenue as a record. Results showed record iPhone revenue for the September quarter, alongside a new high for services. But performance varied by region, with revenue in Greater China falling from the same period a year earlier. The results came as the company prepared for the December quarter, which includes the holiday season and will test its ability to meet demand for its devices.
Greater China revenue was $14.493 billion in the three months ended Sept. 27, compared with $15.033 billion in the comparable period ended Sept. 28, 2024. Reuters coverage attributed the decline mainly to lower iPhone sales in the region, while higher Mac sales offset part of the drop. Tim Cook said the company expected to return to growth in China in the first quarter and pointed to strong demand there for iPhone 17. The delayed launch of iPhone Air also affected the region's performance; shipments of the device to China did not begin until Oct. 22. The delay was linked to regulatory restrictions on a device that relies exclusively on an eSIM chip for wireless connectivity, according to Reuters.
By contrast, the company offered strong signals from its services business, with revenue rising 15% to a record $28.75 billion, above analysts' estimate of $28.17 billion. Apple said services revenue reached a new record, alongside records for company revenue, iPhone revenue and earnings per share in the September quarter. IDC estimated global iPhone shipments at 58.6 million units in July and September. Apple ranked second behind Samsung, whose shipments were estimated at 61.4 million phones during the period. The company ended fiscal 2025 with record annual revenue of $416 billion, Cook said.
Investors focused on the holiday-quarter outlook; Cook said iPhone sales were poised to grow at a double-digit rate year over year and that total Apple revenue could rise between 10% and 12% in the first quarter of fiscal 2026. The revenue-growth forecast exceeded analysts' estimate of 6.6%, according to LSEG data cited by Reuters. Apple shares rose 3.7% in after-hours trading on Thursday following the announcement, Reuters reported. The company also signaled strong demand, but Cook said it faced supply constraints alongside "very strong demand." The constraints put the company's ability to convert demand into actual sales among the factors markets are watching in the coming quarter.
Tariff costs remain a drag on the financial outlook for the quarter ending in December. Those costs totaled $1.1 billion in the fourth quarter of fiscal 2025, Reuters reported, while Chief Financial Officer Kevan Parekh forecast they would rise to $1.4 billion in the following quarter. Parekh estimated gross margin for that quarter at between 47% and 48%. These forecasts put trade costs and profit margins alongside sales growth among the measures by which holiday-season performance will be judged. Investors are also waiting to see whether improving demand in China will return the region to growth, as Cook forecast for the first quarter.