Apple reported a $24.78 billion profit for its fiscal second quarter of 2025 as revenue rose 5% year over year to $95.36 billion. The results, released on May 1, 2025, narrowly exceeded Wall Street expectations even as investors focused increasingly on tariffs, China, artificial intelligence, and legal pressure surrounding Apple's services business.
The quarter ended March 29, 2025. According to Apple's official earnings release, diluted earnings per share reached $1.65, up 8% from $1.53 a year earlier and a record for an Apple March quarter.
LSEG data cited by Reuters showed analysts had expected approximately $94.68 billion in revenue and $1.63 per share. Apple's reported revenue and earnings per share therefore came in slightly ahead of the consensus forecasts.
Apple's Q2 2025 results at a glance
Apple's Form 10-Q filed with the U.S. Securities and Exchange Commission provides the detailed figures behind the quarter:
| Metric | Q2 FY2025 | Year-over-year change |
|---|---|---|
| Revenue | $95.36 billion | +5% |
| Net income | $24.78 billion | +4.8% |
| Diluted EPS | $1.65 | +8% |
| Services revenue | $26.65 billion | +12% |
Apple also generated roughly $24 billion in operating cash flow during the quarter and returned approximately $29 billion to shareholders, according to the company.
iPhone remained Apple's largest business
iPhone revenue reached $46.84 billion, up about 2% from $45.96 billion a year earlier. Apple highlighted the addition of the lower-priced iPhone 16e to its lineup during the quarter, although the company's financial filings do not break out sales by individual iPhone model.
Mac revenue increased 7% to $7.95 billion, while iPad revenue climbed 15% to $6.40 billion. Wearables, Home and Accessories moved in the opposite direction, declining 5% to $7.52 billion.
The results therefore showed a business that was still heavily dependent on the iPhone but was receiving meaningful growth from several other categories, particularly Services and iPad.
Services reached another record
Services was one of Apple's strongest businesses in the quarter. Revenue from the category rose from $23.87 billion to $26.65 billion, an increase of approximately 12%.
Apple's Services segment includes businesses such as the App Store, subscriptions, advertising, cloud services, payment services, and other digital offerings. Its continued expansion matters because Services has become a major source of recurring revenue alongside Apple's hardware products.
That growth, however, was accompanied by increasing legal scrutiny over some of the commercial arrangements supporting the segment.
China remained a weak spot
Greater China generated $16.00 billion in quarterly revenue, down about 2% from $16.37 billion in the same quarter a year earlier. By comparison, Apple's Americas revenue increased 8%, Japan grew 17%, and the Rest of Asia Pacific segment grew 8%.
China therefore remained one of the most closely watched parts of Apple's business. The company faced strong competition from domestic smartphone manufacturers while also trying to manage its long-standing dependence on Asian manufacturing.
Tariffs became the bigger question after the quarter ended
The March-quarter financial statements covered a period that ended just before U.S. trade policy became an even greater concern for technology companies. In April 2025, the Trump administration sharply increased tariffs on Chinese imports before granting temporary exemptions from the new reciprocal tariffs for smartphones, computers, and several other electronics categories.
Those exemptions did not eliminate every duty affecting Apple. Reuters reported that an earlier 20% tariff connected to Chinese imports remained applicable to affected products.
During Apple's May 2025 earnings discussion, CEO Tim Cook said that, assuming tariff rates and policies remained unchanged and no additional tariffs were introduced, the company estimated approximately $900 million in additional tariff-related costs for the June quarter.
Cook also said Apple expected most iPhones sold in the United States during that quarter to come from India, while Vietnam would supply most U.S.-bound iPads, Macs, Apple Watches, and AirPods. The comments illustrated how Apple's increasingly diversified supply chain could reduce, but not eliminate, its exposure to trade-policy changes.
The App Store ruling created new pressure on Services
Another major development arrived immediately before Apple released these earnings. On April 30, 2025, a federal judge found Apple in contempt in its long-running litigation with Epic Games over compliance with an injunction governing how developers may direct users to payment options outside the App Store.
The dispute centered in part on Apple's attempt to impose a 27% commission on certain purchases made outside its own in-app payment system after users followed external links.
The case continued after the original earnings report. In December 2025, the U.S. Court of Appeals for the Ninth Circuit agreed that the 27% commission had a prohibitive effect under the injunction, while addressing other parts of the lower court's order separately. The litigation has therefore remained an important issue for Apple's App Store business rather than disappearing after the initial 2025 ruling.
Google search payments were not eliminated
At the time of Apple's earnings report, another significant concern involved the billions of dollars Google pays Apple to make Google the default search engine in Safari. A federal court had already ruled in 2024 that Google unlawfully maintained a monopoly in general search, raising questions about whether its distribution agreements with Apple could survive the remedies phase.
The later outcome was less damaging to Apple than some early scenarios suggested. In September 2025, the court prohibited Google from maintaining certain exclusive search-distribution arrangements but did not impose a blanket ban on payments to partners such as Apple. The U.S. Department of Justice said the remedies restricted exclusivity and long-term conditions while imposing additional requirements intended to increase competition.
That means the original possibility that Apple could simply lose the entire Google payment stream should be treated as a risk that was being debated in 2025, not as something that ultimately occurred.
Apple Intelligence also took longer than originally expected
Apple's AI strategy was another source of uncertainty surrounding the company in 2025. Apple Intelligence had already introduced features such as writing assistance and notification summaries, but some of the most ambitious Siri capabilities announced by Apple did not arrive on the original schedule.
In March 2025, Apple confirmed that features designed to give Siri greater awareness of a user's personal context and the ability to take more actions across apps would take longer than expected. Those capabilities were pushed beyond the initial timetable rather than simply arriving in the fall of 2025.
The story changed again in 2026. Apple introduced its redesigned Siri AI in June 2026, built around personal-context understanding, onscreen awareness, broader knowledge, and additional actions across apps. By September 2026, Apple said the new Siri AI had begun rolling out in beta in English, with additional languages planned afterward and regional availability still varying.
What the quarter ultimately showed
Apple's fiscal second quarter of 2025 was financially stronger than the uncertainty surrounding the company might have suggested. Revenue increased to $95.36 billion, net income reached $24.78 billion, earnings per share exceeded the Wall Street consensus, and Services produced another record.
The more important questions were increasingly about what came next. Tariffs threatened Apple's global supply chain, Greater China remained under pressure, App Store rules faced continuing legal challenges, Google's search agreement entered a new regulatory framework, and Apple's most ambitious Siri upgrades required substantially more time than originally planned.
The quarter was therefore both a strong earnings report and an early snapshot of the regulatory, trade, and AI challenges that would continue shaping Apple's strategy well beyond 2025.
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