Apple Earnings: Beats Expectations Despite iPhone Sales Dip

Apple reported strong fiscal second-quarter results on Thursday, exceeding analyst expectations for both earnings and revenue, though iPhone sales met forecasts rather than surpassing them. The company earned $2.01 per share on revenue of $111.18 billion, according to a statement released by Apple.

The results come as Apple prepares for a leadership transition, with CEO Tim Cook set to step down later this year, to be replaced by the head of hardware engineering, John Ternus. Investors are also focused on the company’s artificial intelligence strategy.

Earnings Beat Expectations

Apple’s earnings of $29.58 billion, or $2.01 per share, for the January-March period represent approximately a 22% increase compared to the same period last year. Revenue rose roughly 17% to $111.18 billion, up from $95.36 billion a year earlier. These figures surpassed analyst forecasts of $1.95 per share on revenue of $109.46 billion, as surveyed by FactSet Research.

iPhone Sales Meet Forecasts

iPhone sales accounted for the largest portion of revenue, bringing in $56.99 billion. While this represents a strong performance, fueled by “such extraordinary demand” for the iPhone 17 lineup, it met expectations rather than exceeding them, potentially due to supply constraints.

“It was the company’s best March quarter ever, with double-digit growth across every geographic segment.”

Tim Cook, Apple CEO

The company highlighted the success of the recently launched iPhone 17e and the MacBook Neo, an entry-level laptop, as representing its “most aggressive attempt at moving into the affordable market.”

Beyond the iPhone

Apple also saw strong performance in other areas. The company beat expectations for its services and Mac businesses. Mac revenue during the quarter was $8.4 billion, with sales rising 5.7% year-over-year. Overall product revenue reached $80.21 billion, slightly above the estimated $79.26 billion.

Despite the positive results, Apple’s shares dipped slightly in after-hours trading. This suggests that investors are also considering the broader implications of the CEO transition and the company’s AI strategy, particularly as it has yet to deliver on its long-promised revamp of Siri with AI capabilities.

Tim Cook has led Apple for 15 years, taking over from the late Steve Jobs. During his tenure, the company’s market value has increased significantly, though the exact figure was not disclosed in the released statements.

Apple’s board of directors has declared a cash dividend of $0.26 per share, payable on November 13, 2025, to shareholders of record as of the close of business on November 10, 2025.