Apple has reported impressive results for its September quarter, showing a robust response to its products despite some supply constraints. The tech giant announced a revenue increase of 8% year-over-year, reaching $102.47 billion, which surpassed analysts’ estimates of $102.26 billion. Earnings per share jumped to $1.85, marking a substantial 91% increase compared to the previous year, and exceeded the consensus estimate of $1.77.
Following the earnings announcement, Apple’s shares soared as much as 5% in after-hours trading, indicating strong investor sentiment, although they settled around $278. This upswing is significant given the company’s rocky start to 2025, with shares having risen approximately 30% over the past three months and an overall gain of more than 8% this year. Notably, Apple recently achieved a market capitalization of $4 trillion.
Apple set new records for sales, earnings, and operating cash flow in the September quarter, with a standout performance from its services segment, which achieved an all-time revenue high across all regions except for Greater China. CEO Tim Cook mentioned that the drop in sales from Greater China was largely due to supply constraints on popular iPhone models, but he expects the region to rebound.
The consolidated gross profit margin exceeded management’s expectations, increasing by 70 basis points sequentially and nearly 100 basis points year-over-year. This improvement came despite facing a $1.1 billion cost headwind associated with tariffs.
While iPhone sales rose 6% to $49.03 billion, they fell short of expectations due to supply issues. Cook highlighted that demand remains strong, especially for the latest iPhone 17 models. Anticipating a strong December quarter, he indicated that revenue could reach historic levels, potentially making it the best quarter for both the company and its iPhone line.
Product sales also set records, driven by strong performances from iPhones and Macs. Revenue for products increased to $73.72 billion. The installed base of active devices also reached a new high. Mac sales experienced a significant boost due to the popularity of the MacBook Air, growing by 12.7% to $8.73 billion.
In the wearables, home, and accessories segment, sales dipped slightly to $9.01 billion, driven by demand for the Apple Watch and AirPods, both of which reached record levels of activity.
Apple’s services segment grew by 15%, reaching an all-time high of $28.75 billion, driven by advancements in advertising, app store sales, cloud services, and more. The company noted that its outlook for December indicates expected revenue growth of 10% to 12%, far surpassing Wall Street’s projections.
Despite a challenging macroeconomic environment, Apple ended the quarter with a significant cash and marketable securities balance of $132 billion and returned $24 billion to shareholders through dividends and stock buybacks.
As Apple gears up for what it anticipates will be one of its best holiday quarters, management remains optimistic about the future, particularly as they prepare for the launch of an upgraded artificial intelligence Siri in 2026. The company emphasized maintaining a strong position in the market through a robust portfolio of hardware and services.
