Categories Analysis, Technology
What to look for when Apple (AAPL) reports Q3 FY25 results?
Analysts forecast a year-over-year increase in third-quarter sales and profit
As Apple Inc. (NASDAQ: AAPL) prepares to report third-quarter results on Thursday, investors’ focus is on the gadget giant’s strategic pivots in supply chain and slowing iPhone momentum. Recently, concerns have emerged about Apple lagging behind peers in AI integration, even as it grapples with headwinds from new import tariffs.
The company will publish its third-quarter 2025 earnings report on Thursday, July 31, at 4:30 pm ET. On average, analysts following the business estimate earnings of $1.42 per share for the quarter, compared to $1.40 per share it reported in the year-ago quarter. The consensus revenue estimate is $88.96 billion, which represents a 3.71% year-over-year increase.
The performance of Apple’s stock has been lackluster in 2025, with the shares declining around 14% so far. The last closing price is almost at the levels seen twelve months ago. After climbing to an all-time high towards the end of 2024, AAPL is struggling to regain strength.
Record Installed Base
In the second quarter, the tech firm’s net sales increased to $95.4 billion from $90.75 billion in the same period of fiscal 2024, exceeding analysts’ estimates. The top-line growth mainly reflects a 1.9% increase in iPhone sales. Sales rose across all geographical regions, except China. During the quarter, Apple’s installed base of active devices once again reached an all-time high. The fast-growing services segment, which now accounts for nearly a third of total revenues, grew 12%.
From Apple’s Q2 2025 earnings call:
“We’re going to be expanding our teams in our facilities in several states, including Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington. And we’re going to be opening a new factory for advanced server manufacturing in Texas. During calendar year 2025, we expect to source more than 19 billion chips from a dozen states, including tens of millions of advanced chips being made in Arizona this year. We also source the glass used in iPhone from an American company.”
Earnings Beat
Earnings, on a per-share basis, rose to $1.65 in the second quarter from $1.53 in Q2 2024. Net income was $24.78 billion in Q2, compared to $23.64 billion in the year-ago period. The company has a strong track record of consistently delivering stronger-than-expected earnings — EPS beat estimates for the eighth consecutive quarter.
The tariff-related cost pressure may force Apple to increase the prices of its products, which in turn could affect sales in the near term. However, the company’s brand power, successful business model, and continued innovation should enable it to navigate through the challenges.
Apple’s average stock price for the last 52 weeks is $222.19. On Monday, the shares opened at $214.03 and traded slightly higher in the early hours.
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