Apple Fiscal Q4 2025: iPhone and iPad Underwhelm, Services Power a $102.47B Quarter

Apple closed its fiscal year with a mixed but ultimately resilient Q4 2025, booking $102.47 billion in revenue and $27.47 billion in net income. Headline sales rose 7.9% year over year versus Q4 2024’s $94.93 billion, and earnings per share outpaced Wall Street. Yet beneath the top line, the product story was uneven: iPhone and iPad revenue arrived softer than analysts hoped, while Services extended its multi-year surge and Wearables edged past expectations. The result is a quarter that underscores Apple’s shift from a hardware cycle story toward a blended model where software, subscriptions, and installed-base monetization do more of the heavy lifting.

By the numbers

• Total sales: $102.47B (vs. $94.93B in Q4 2024)
• iPhone: $49.03B (up 6.1% YoY)
• Mac: $8.73B (up 12.8% YoY)
• iPad: $6.95B (flat YoY)
• Wearables, Home & Accessories: $9.01B (down 0.3% YoY)
• Services: $28.75B (up 15.1% YoY)
• Gross margin (dollars): $48.34B
• R&D expenses: $8.87B
• Cash & equivalents: $35.93B

On the profitability side, Apple preserved enviable economics even as product growth seesawed. The company’s operating discipline remains clear in the scale of gross margin dollars and in sustained investment: nearly $8.87 billion poured into R&D this quarter to keep the pipeline primed across silicon, software, and ecosystem services.

Beats, misses, and what moved

Apple beat consensus revenue of $102.24B and delivered EPS of $1.85, ahead of the $1.77 expectation. Segmentally, however, investors had to thread a needle:

• iPhone: $49.03B missed the $50.19B consensus. The year-on-year growth shows resilience, but mix and upgrade cadence appear lighter than bulls hoped for.
• iPad: $6.95B landed just short of the $6.98B expectation and was flat YoY – steady, but not catalytic.
• Mac: $8.73B topped the $8.59B consensus, aided by easier comps and a healthier replacement cycle.
• Wearables, Home & Accessories: $9.01B exceeded the $8.49B expectation, even as YoY compares were slightly negative – evidence of demand pockets within the broader ecosystem.
• Services: the standout at $28.75B, beating $28.17B. High-margin subscription revenue continues to compound on a vast installed base.

Importantly, Apple absorbed a $1.1 billion tariff impact in Q4 2025. Despite this headwind, the company still cleared Street profit targets – an illustration of pricing power, supply chain agility, and Services leverage.

Full-year 2025: a steadier climb

For the fiscal year, Apple posted $416.16B in revenue, up 6.42% from $391.04B. Products brought in $307B (+4.11% YoY), while Services reached $109.2B (+13.55% YoY). The composition matters: Services’ double-digit growth and structurally higher margins continue to tilt Apple’s earnings profile toward more predictable, recurring streams. That not only supports profitability through product cycles, it also offers ballast against macro and regulatory bumps.

What leadership said: new Siri on the way

On the call, management highlighted product roadmaps and platform investments, with a new Siri slated for 2026. While details were light, the timing signals Apple’s intent to deepen on-device intelligence, privacy-first AI features, and tighter integration across hardware and Services. CEO Tim Cook also struck an upbeat tone on the December-ending quarter, suggesting seasonality, product refreshes, and Services momentum could provide a constructive setup heading into the holidays.

Context and takeaways

Apple’s fiscal Q4 typically maps to the late summer/early fall period, historically a transitional window ahead of holiday demand. Against that backdrop, the company’s ability to out-earn consensus while digesting tariffs and mixed product prints underscores strategic resilience. iPhone and iPad softness will draw scrutiny, but the broader narrative is increasingly anchored by Services, by the Mac’s recovery, and by a Wearables category that can still surprise.

The investment cadence is another signal. With nearly $9B in quarterly R&D, Apple continues to fund silicon leadership, developer tools, and AI-driven experiences that differentiate the platform and, crucially, create new monetization surfaces across its Services stack.

What to watch next

• Holiday quarter execution: unit mix, promotions, and supply dynamics for iPhone, iPad, and Mac.
• Services durability: gross margin contribution and potential pricing/mix levers.
• Wearables trajectory: whether strength persists as new features and health/fitness use cases expand.
• Tariff and macro risks: the residual impact after the Q4 $1.1B hit.
• Siri 2026: how Apple frames its AI roadmap, privacy stance, and developer ecosystem as launch nears.

Bottom line: Apple exited FY2025 with stronger-than-expected earnings, a Services engine in high gear, and clear signals that software and intelligence will shape the next leg of growth – even as its flagship hardware cycles face higher bars and sharper expectations.