Apple has once again shown why it remains one of the world’s most closely watched companies. On Thursday, the tech giant gave a surprisingly strong revenue forecast for the current quarter ending in September, easily topping Wall Street’s expectations. That news sent its shares up 3% in after-hours trading, despite CEO Tim Cook’s warning that new U.S. tariffs would cost the company an extra $1.1 billion this quarter alone.
Apple’s third-quarter performance, which ended on June 28, was solid across the board. The company reported $94.04 billion in revenue, a nearly 10% jump from the same period last year, beating analyst predictions of $89.54 billion. Earnings per share hit $1.57, well above the expected $1.43. The standout performer was the iPhone, which saw sales rise 13.5% to $44.58 billion, far exceeding forecasts.
Looking ahead, Chief Financial Officer Kevan Parekh said Apple expects revenue to grow in the “mid to high single digits” this quarter. That’s well ahead of the 3.27% growth analysts had been predicting, signaling continued strength even as global uncertainty looms.
Apple just crushed earnings, beating revenue expectations by billions.
But Tim Cook warns of a $1B hit next quarter from tariffs.
Is this a critical week for the US economy?$AAPL #Investing #EarningsSeason #TechStocks #Apple pic.twitter.com/86iLvkAh7D— IG (@IGcom) August 1, 2025
However, it hasn’t all been smooth sailing. Apple is still grappling with the impact of the U.S.–China trade war, which cost the company $800 million in tariffs last quarter. Interestingly, that challenge may have also worked in Apple’s favor, some customers rushed to buy products ahead of potential price hikes, especially iPhones, Macs, and Apple Watches, giving the quarter a sales boost.
To lessen the impact of future tariffs, Apple has been moving parts of its supply chain out of China. More iPhones are now being made in India, and other products like Macs and Apple Watches are being assembled in Vietnam, a shift that could help Apple manage costs over the long term.
In Greater China, Apple saw a welcome rebound, with revenue rising to $15.37 billion, helped by local government subsidies to revive smartphone demand. That’s a promising turnaround after sales had dipped earlier this year.
Still, Apple isn’t without challenges. It faces stiff competition from Samsung and Google, and investors remain cautious due to Apple’s slower rollout of artificial intelligence features. Its stock is down 17% in 2025, trailing behind AI-driven rivals like Microsoft and Nvidia.
Cook addressed those concerns head-on, saying Apple is ramping up investment in AI and working on a more personalized version of Siri. “We’ve always been about making cutting-edge tech simple and accessible to everyone,” he said.
Even with bumps in the road, Apple’s services revenue, covering the App Store, music, and cloud, rose to $27.42 billion, topping forecasts. Gross margins hit 46.5%, showcasing the company’s ability to stay profitable even amid economic uncertainty.
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