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Bottom line: As Apple contends with shifting trade policies and a changing global manufacturing landscape, its ability to adapt its supply chain and maintain robust financial performance will remain under close scrutiny from investors and analysts. Meanwhile, consistent with its practice over the past five years, Apple declined to issue formal guidance for the upcoming quarter.
Apple’s latest financial results reveal a company navigating both strong demand and mounting geopolitical pressures, as new tariffs threaten to reshape its global supply chain and cost structure.
For the second fiscal quarter of 2025, Apple reported revenue of $95.4 billion and a net profit of $24.8 billion, or $1.65 per diluted share. This marks an increase from the $90.8 billion in revenue and $23.6 billion in profit reported during the same period last year. The company’s gross margin climbed to 47.1%, up from 46.6% a year ago, and Apple’s board authorized an additional $100 billion for share repurchases, alongside a dividend increase to $0.26 per share.
“Today Apple is reporting strong quarterly results, including double-digit growth in Services. We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon,” CEO Tim Cook said.
Despite surpassing Wall Street’s revenue and earnings-per-share expectations, Apple’s shares dropped as much as 4% in after-hours trading. The reaction reflected investor anxiety over the company’s performance in China and the looming impact of tariffs.
Apple’s revenue from China fell 2.3% to $16 billion, missing analyst forecasts and underscoring ongoing challenges in what was once a key growth market.
A central focus of the earnings call was the financial impact of tariffs linked to US trade policy targeting Chinese imports. Cook told investors that Apple expects tariffs to add $900 million in costs for the June quarter alone, a figure already factored into the company’s guidance for gross margin.
“If things remained the same, the company estimates tariffs will only add $900 million to its costs in Q3,” Cook explained, noting that the estimate assumes no further changes in global tariff rates or new tariffs added during the quarter. However, he cautioned against projecting this impact into future quarters, emphasizing, “I don’t want to predict the future, because I’m not sure what will happen with the tariffs.”
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Apple is accelerating efforts to diversify its manufacturing footprint to counteract these rising costs. According to Cook, “a majority of iPhones sold in the US during the June quarter will be produced in India,” while iPads, Macs, and other products for the US market are increasingly being sourced from Vietnam. This marks a significant departure from Apple’s historical reliance on China for manufacturing, a move driven by both tariff pressures and broader geopolitical risks.
Despite these challenges, Apple’s core businesses demonstrated resilience. iPhone revenue rose 2% year-over-year to $46.8 billion, outpacing expectations. Mac and iPad sales exceeded analyst forecasts, with revenue of $7.9 billion and $6.4 billion, respectively. Services revenue hit an all-time high but fell slightly short of some estimates.
Apple’s finance chief Kevan Parekh indicated that the company expects overall revenue to grow “low to mid-single digits” annually in the current quarter, with gross margin guidance reflecting the added tariff costs.
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