Apple Stock Earnings Reports

Apple reported a record December quarter with $143.8 billion in revenue (up 16% year-over-year) and all-time highs in EPS ($2.84), services ($30.0 billion), and active devices (>2.5 billion). iPhone was the primary growth driver, generating $85.3 billion (up 23% YoY) with strong global demand and outsized strength in Greater China and India. Mac and iPad saw all-time installed-base highs despite a tough Mac comp; wearables were modestly down due in part to AirPods Pro 3 supply constraints. Services continued broad-based double-digit growth with records in advertising, cloud, music, payments, and App Store engagement. Gross margin came in at 48.2% (above guidance); products gross margin benefited from favorable mix and leverage, while services gross margin remained very strong. Apple returned nearly $32 billion to shareholders (including $25 billion in share repurchases) and ended the quarter with $145 billion in cash and marketable securities (net cash $54 billion). Management flagged near-term supply constraints—driven primarily by limited availability of advanced-node SoC capacity—and rising memory prices as headwinds acknowledged in the March-quarter guidance. For March, Apple expects revenue growth of 13%–16% YoY, gross margin of 48%–49%, operating expenses of $18.4–18.7 billion, and an approximate tax rate of 17.5%. Apple also announced a strategic collaboration with Google to develop next-generation Apple foundation models to power future AI features, including a more personalized Siri.