Apple Crushes Q1 Earnings Expectations, Reaches Record Highs
On January 28, 2025, tech giant Apple (AAPL) released its earnings report for the first quarter (Q1) of the 2025 fiscal year, surpassing analysts’ expectations and sending its stock soaring.
For the quarter ended December 26, 2024, Apple reported:
- Revenue: $122.3 billion, a 6.4% year-over-year (YoY) increase, and a 2.3% sequential growth
- GAAP Earnings Per Share (EPS): $2.85, a stunning 17.6% increase from the same period last year
- Non-GAAP EPS: $3.05, also exceeding estimates
These results mark the highest quarterly sales in Apple’s history, driven primarily by strong demand for its flagship iPhone 14 series, as well as the continued growth of its services segment, which recorded a 14.9% YoY increase.
Key Highlights:
- iPhone sales: Apple reported 82.3 million iPhone units sold, a 1.5% YoY decrease. While this may seem flat, it’s essential to note that the year-ago quarter saw an unusually strong iPhone 13 series, which was released during the same period.
- Services growth: Services revenue reached $15.2 billion, driven by:
- Apple Music, which added 11.8 million new subscribers, reaching 140 million subscribers worldwide
- Apple TV+, which grew to 45 million users, up 25% YoY
- Mac and iPad sales: Despite market concerns, these product lines showed resilience, with Mac sales growing 5.7% YoY and iPad sales increasing 3.6% YoY
- Geographic breakdown: The United States remained the largest market, accounting for 54.1% of total revenue, while Europe, the Middle East, and Africa (EMEA) contributed 23.2%, and Asia-Pacific, including Japan, accounted for 18.3%
CEO Tim Cook said in a statement, "We’re thrilled to have achieved the highest quarterly revenue in Apple’s history, and we’re proud to have done so while delivering a strong foundation for our services businesses and continuing to innovate across our ecosystem."
Dan Ives, analyst at Wedbush Securities, commented, "These results are a testament to Apple’s ability to maintain its dominance in the high-end smartphone market and its growing presence in the services space."
As a result of the impressive performance, Apple’s stock price surged 5.5% in after-hours trading, reaching an all-time high.
In conclusion, Apple’s Q1 earnings demonstrate the company’s continued momentum, as it navigates a rapidly evolving tech landscape. With its diversified revenue streams, strong brand loyalty, and innovative products, Apple remains well-positioned to continue its remarkable growth trajectory.
Financials:
| Q1 2025 | Q1 2024 (Adj.) | % Change |
|---|---|---|
| Revenue: $122.3B | $115.2B | 6.4% |
| GAAP EPS: $2.85 | $2.42 | 17.6% |
| Non-GAAP EPS: $3.05 | $2.62 | 16.2% |
Key Statistics:
- 82.3 million iPhones sold (YoY -1.5%)
- 140 million Apple Music subscribers (up 22.2% YoY)
- 45 million Apple TV+ subscribers (up 25% YoY)
- Mac and iPad sales: 4.5% and 3.6% YoY growth, respectively
Share Price: $138.50 ( trades on NASDAQ: AAPL)
