iPhone and iPad maker Apple (NASDAQ:AAPL) reported Q2 CY2025 results exceeding the market’s revenue expectations , with sales up 9.6% year on year to $94.04 billion. Its GAAP profit of $1.57 per share was 10.1% above analysts’ consensus estimates.
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Revenue: $94.04 billion vs analyst estimates of $89.54 billion (5% beat)
Operating Profit (GAAP): $28.2 billion vs analyst estimates of $25.86 billion (9.1% beat)
EPS (GAAP): $1.57 vs analyst estimates of $1.43 (10.1% beat)
Products Revenue: $66.61 billion vs analyst estimates of $62.76 billion (6.1% beat)
Services Revenue: $27.42 billion vs analyst estimates of $26.81 billion (2.3% beat)
Gross Margin: 46.5%, in line with the same quarter last year
Operating Margin: 30%, in line with the same quarter last year
Free Cash Flow Margin: 26%, down from 31.1% in the same quarter last year
Market Capitalization: $3.12 trillion
“Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment,” said Tim Cook, Apple’s CEO.
Apple (with its installed base of 2 billion+ devices) proves that huge, scaled companies can still grow. The company’s revenue base of $273.9 billion five years ago has increased to $408.6 billion in the last year, translating into a decent 8.3% annualized growth rate.
In light of its big tech peers, however, Apple’s growth trailed Amazon (15.8%), Alphabet (17.5%), and Microsoft (14.5%) over the same period. This is an important consideration because investors often use the comparisons as a starting point for their valuations. When adjusting for these benchmarks, we think Apple’s price is fair.
We at StockStory emphasize long-term growth, but for big tech companies, a half-decade historical view may miss emerging trends in AI. Apple’s recent performance shows its demand has slowed as its annualized revenue growth of 3.2% over the last two years was below its five-year trend.
This quarter, Apple reported year-on-year revenue growth of 9.6%, and its $94.04 billion of revenue exceeded Wall Street’s estimates by 5%. Looking ahead, sell-side This projection illustrates the market sees some success for its newer AI-enabling Apple Intelligence products. However, its anticipated growth is still a far cry from its heyday in the 2010s.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.
