Regardless that the saga began after the fiscal quarter ended, Apple’s Q2 monetary outcomes are going to be profoundly completely different because of the Trump tariffs. Here is what to anticipate from the outcomes on Could 1.
As common as clockwork, Apple shall be reporting its Q2 2025 earnings on May 1, with the outcomes launched forward of the usual analyst and investor convention name at 5p.m. Japanese.
Apple’s CEO Tim Cook shall be on the decision, together with newly-installed CFO Kevan Parekh, to debate the outcomes and to tackle questions from analysts.
Given the turbulent April Apple endured because of the introduction of tariffs against China and the remainder of the world by President Donald Trump, Prepare dinner and Parekh will in all probability have much more questions concerning the provide chain than regular.
Final quarter: Q1 2025 particulars
The Q1 results noticed Apple report its highest figures for the 12 months, together with income rising year-on-year to $124.3 billion from $119.58 billion within the year-ago quarter.
On a unit foundation, iPhone was comparatively flat year-on-year at $69.1 billion for the quarter, iPad rose from $7.02 billion to $8.088 billion, and Mac rose from $7.78 billion to $8.99 billion. Wearables, Dwelling, and Equipment noticed a small dip from $11.95 billion to $11.747 billion.
Apple quarterly income and gross margin as of Q1 2025
Providers continued its development streak, from $23.12 billion in Q1 2024 to $26.34 billion in Q1 2025.
That quarter had lots of previous launches, together with the iPhone 16 vary, USB-C on AirPods Max, the Apple Watch Series 10, and the Black Apple Watch Ultra.
Apple’s board of administrators declared a money dividend of $0.25 per share of widespread inventory. The Earnings Per Share was listed at $2.41.
On a regional foundation, which is sort of pertinent this time round, Higher China income noticed a YoY dip from $20.8 billion to $18.513 billion.
12 months-ago quarter: Q2 2024
Usually the benchmark for comparability for the present quarter’s outcomes, the Q2 2024 outcomes had been a little bit of a dip for the corporate. Total income of $90.75 billion was down from the earlier Q2 2023’s determine of $94.8 billion.
Even so, there have been fairly just a few positives. For a begin, Apple beat Wall Road, with its consensus placing Apple’s income at someplace between $82.32 billion and $86.15 billion.
Apple’s EPS of $1.53 was up year-on-year from $1.52, and likewise beat Wall Road’s forecast of $1.50.
Apple quarterly unit income, as of Q1 2025
That quarter had comparatively few product launches, together with the discharge of the Apple Vision Pro, in addition to M3 Apple Silicon updates to the MacBook Air vary.
Income from iPhone was $45.96 billion, down YoY from $51.3 billion. Mac was flat, from $7.45 billion one 12 months previous to $7.2 billion.
There was a dip for iPad from $6.7 billion to $5.56 billion, whereas Wearables, Dwelling, and Equipment shifted downward from $8.76 billion to $7.9 billion. Providers saved up its development pattern, going from $20.9 billion in Q2 2023 to $23.9 billion in Q2 2024.
What occurred in Q2 2025
As ordinary for the interval, Apple had some product launches, together with the iPhone 16e, the Eleventh-gen iPad, the M3 editions of iPad Air, the M4 MacBook Air, and an up to date Mac Studio.
Whereas it will not have the identical influence as within the huge Q1 outcomes, there’ll nonetheless be the lingering results of product launches from the top of 2024, together with the iPhone 16 technology, a brand new iPad mini, and the November Mac launches.
These can have a cloth influence on income within the Q2 outcomes.
Submit-quarter Trump tariffs
A present hot-button subject that shall be raised through the analyst convention name, and that Apple will in all probability advise on, is the state of tariffs. After the quarter ended, the Trump administration determined to subject “reciprocal tariffs” towards every nation on the earth.
Given the risky nature of the scenario, it’s nearly sure that the tariffs, and what Apple can do to mitigate their results on the provision chain as an entire, will dominate the analyst chatter.
The tariffs had been heralded very early in Apple’s second quarter, however weren’t carried out till April, after the quarter ended. The tariffs will not influence the outcomes of the quarter itself, however will nearly definitely play a consider Q3 and future quarter discussions.
The tariff struggle included a interval of tit-for-tat rises, with Trump setting a high rate for China, then China fighting back with its personal on imports from the U.S., adopted by a response by Trump.
The affair severely impacted Apple’s inventory worth, with buyers apprehensive concerning the potential excessive worth rises of Apple items in america, attributable to the tariffs.
Ultimately, Apple and different tech firms got some respite within the type of an exception. That is, nevertheless, temporary till new “semiconductor tariffs” arrive sooner or later.
China, in the meantime, was fed up of elevating its tariff towards U.S. items, and went a special route. As a substitute, it ceased the exports of uncommon earth minerals and magnets, which may influence provide chains all over the world.
Whereas buyers could also be apprehensive about future iPhone pricing, it in all probability will not have an effect on gross sales that a lot. Analyst analysis has decided that the intention to improve within the subsequent 12 months is at an all-time high.
Nonetheless, that survey occurred in March, earlier than the tariffs hit the world. Shopper opinion might have modified quite a bit since then.
Wall Road Consensus
The Wall Road consensus refers to a survey of analysts. The outcomes are averaged out to offer a basic opinion of the place buyers and analysts are leaning of their quarterly forecasts for Apple.
Yahoo Finance
Within the estimates published by Yahoo Finance as of April 21, 27 analysts provided a median income estimate of $93.97 billion. The estimated vary goes from a excessive of $95.9 billion to a low of $89.4 billion.
For the earnings per share, a gaggle of 27 forecasts a median of $1.61, with a excessive of $1.66 and a low of $1.47.
TipRanks
On April 21, TipRanks provided its personal consensus figures. The income forecast is at $93.94 billion, with a variety from $89.4 billion to $95.9 billion.The earnings per share is predicted to be $1.61, with a variety from $1.47 to $1.67.
Analyst Expectations
As Apple’s outcomes get nearer to launch, analysts supply what they consider shall be included within the issued figures, and the place Apple’s future could lead on for the approaching 12 months.
Morgan Stanley
Morgan Stanley’s final main transfer on Apple was a reduce of its worth goal from $275 to $252 on March 12, earlier than the tariff bother started. Analysts posited that the continued postponement of Siri enhancements will mood iPhone improve charges.
On the time, analysts diminished the agency’s iPhone cargo forecast for the 12 months to 230 million items, equating flat shipments year-on-year, however rising to 243 million in 2026. The slower-than-expected iPhone alternative cycle additionally reduce down Morgan Stanley’s full-year income estimate to $436 billion.
On April 22, it reaffirmed its “Chubby” score and a $200 worth goal.
Wedbush
On April thirteenth, Wedbush lowered its full-year earnings per share estimates for Apple, from $7.44 per share for the 12 months to $7 flat. Wedbush’s consensus estimate places Apple at $7.28 for the full-year earnings
Wedbush holds an “Outperform” score for Apple, with a $250 worth goal.
Goldman Sachs
On March 6, Goldman Sachs reaffirmed its “Purchase” score for Apple, with a worth goal of $294.
The choice adopted Apple’s March Mac updates, which Goldman Sachs analysts believed would assist Apple attain a Q2 income development goal. That development is not huge, with low to mid single-digit motion anticipated at round 6%, and an estimated income determine of $95.9 billion.
Evercore
On April 15, Evercore believed Apple was poised for upside within the quarter, however mentioned the main focus is on Q3, and the way Apple offers with the tariffs. This included utilizing plane and its logistical prowess to import merchandise into america.
Total, Evercore maintained its “Outperform” score for the inventory, with a worth goal of $250.
UBS
On April 14, a UBS notice to buyers provided that Apple had a robust monetary well being rating. It had a strong place with $137.53 in EBITDA and a 46.5% gross revenue margin that served as a buffer of types towards regulatory points just like the tariffs.
It maintained a “Impartial” score for Apple, with a worth goal of $236.
