Despite the fact that the saga began after the fiscal quarter ended, Apple’s Q2 monetary outcomes are going to be profoundly completely different because of the Trump tariffs. Here is what to anticipate from the outcomes on Could 1.
As common as clockwork, Apple will likely be reporting its Q2 2025 earnings on Could 1, with the outcomes launched forward of the usual analyst and investor convention name at 5p.m. Japanese.
Apple’s CEO Tim Cook dinner will likely be on the decision, together with newly-installed CFO Kevan Parekh, to debate the outcomes and to tackle questions from analysts.
Given the turbulent April Apple endured because of the introduction of tariffs towards China and the remainder of the world by President Donald Trump, Cook dinner and Parekh will in all probability have much more questions in regards to the provide chain than regular.
Final quarter: Q1 2025 particulars
The Q1 outcomes noticed Apple report its highest figures for the 12 months, together with income rising year-on-year to $124.3 billion from $119.58 billion within the year-ago quarter.
On a unit foundation, iPhone was comparatively flat year-on-year at $69.1 billion for the quarter, iPad rose from $7.02 billion to $8.088 billion, and Mac rose from $7.78 billion to $8.99 billion. Wearables, Dwelling, and Equipment noticed a small dip from $11.95 billion to $11.747 billion.
Apple quarterly income and gross margin as of Q1 2025
Providers continued its development streak, from $23.12 billion in Q1 2024 to $26.34 billion in Q1 2025.
That quarter had plenty of previous launches, together with the iPhone 16 vary, USB-C on AirPods Max, the Apple Watch Sequence 10, and the Black Apple Watch Extremely.
Apple’s board of administrators declared a money dividend of $0.25 per share of widespread inventory. The Earnings Per Share was listed at $2.41.
On a regional foundation, which is kind of pertinent this time round, Better China income noticed a YoY dip from $20.8 billion to $18.513 billion.
12 months-ago quarter: Q2 2024
Sometimes the benchmark for comparability for the present quarter’s outcomes, the Q2 2024 outcomes have been a little bit of a dip for the corporate. General income of $90.75 billion was down from the earlier Q2 2023’s determine of $94.8 billion.
Even so, there have been fairly a number of positives. For a begin, Apple beat Wall Road, with its consensus placing Apple’s income at someplace between $82.32 billion and $86.15 billion.
Apple’s EPS of $1.53 was up year-on-year from $1.52, and likewise beat Wall Road’s forecast of $1.50.
Apple quarterly unit income, as of Q1 2025
That quarter had comparatively few product launches, together with the discharge of the Apple Imaginative and prescient Professional, in addition to M3 Apple Silicon updates to the MacBook Air vary.
Income from iPhone was $45.96 billion, down YoY from $51.3 billion. Mac was flat, from $7.45 billion one 12 months previous to $7.2 billion.
There was a dip for iPad from $6.7 billion to $5.56 billion, whereas Wearables, Dwelling, and Equipment shifted downward from $8.76 billion to $7.9 billion. Providers stored up its development development, going from $20.9 billion in Q2 2023 to $23.9 billion in Q2 2024.
What occurred in Q2 2025
As typical for the interval, Apple had some product launches, together with the iPhone 16e, the Eleventh-gen iPad, the M3 editions of iPad Air, the M4 MacBook Air, and an up to date Mac Studio.
Whereas it will not have the identical influence as within the huge Q1 outcomes, there’ll nonetheless be the lingering results of product launches from the top of 2024, together with the iPhone 16 era, a brand new iPad mini, and the November Mac launches.
These could have a cloth influence on income within the Q2 outcomes.
Publish-quarter Trump tariffs
A present hot-button challenge that will likely be raised in the course of the analyst convention name, and that Apple will in all probability advise on, is the state of tariffs. After the quarter ended, the Trump administration determined to challenge “reciprocal tariffs” towards every nation on this planet.
Given the risky nature of the state of affairs, it’s nearly sure that the tariffs, and what Apple can do to mitigate their results on the availability chain as a complete, will dominate the analyst chatter.
The tariffs have been heralded very early in Apple’s second quarter, however weren’t carried out till April, after the quarter ended. The tariffs will not influence the outcomes of the quarter itself, however will nearly definitely play a consider Q3 and future quarter discussions.
The tariff battle included a interval of tit-for-tat rises, with Trump setting a excessive fee for China, then China preventing again with its personal on imports from the U.S., adopted by a response by Trump.
The affair severely impacted Apple’s inventory worth, with buyers frightened in regards to the potential excessive worth rises of Apple items in america, attributable to the tariffs.
Finally, Apple and different tech corporations got some respite within the type of an exception. That is, nonetheless, non permanent till new “semiconductor tariffs” arrive sooner or later.
China, in the meantime, was fed up of elevating its tariff towards U.S. items, and went a distinct route. As a substitute, it ceased the exports of uncommon earth minerals and magnets, which might influence provide chains around the globe.
Whereas buyers could also be frightened about future iPhone pricing, it in all probability will not have an effect on gross sales that a lot. Analyst analysis has decided that the intention to improve within the subsequent 12 months is at an all-time excessive.
Nevertheless, that survey occurred in March, earlier than the tariffs hit the world. Client opinion might have modified quite a bit since then.
Wall Road Consensus
The Wall Road consensus refers to a survey of analysts. The outcomes are averaged out to provide a basic opinion of the place buyers and analysts are leaning of their quarterly forecasts for Apple.
Yahoo Finance
Within the estimates revealed by Yahoo Finance as of April 21, 27 analysts provided a mean income estimate of $93.97 billion. The estimated vary goes from a excessive of $95.9 billion to a low of $89.4 billion.
For the earnings per share, a gaggle of 27 forecasts a mean of $1.61, with a excessive of $1.66 and a low of $1.47.
TipRanks
On April 21, TipRanks provided its personal consensus figures. The income forecast is at $93.94 billion, with a spread from $89.4 billion to $95.9 billion.The earnings per share is predicted to be $1.61, with a spread from $1.47 to $1.67.
Analyst Expectations
As Apple’s outcomes get nearer to launch, analysts provide what they consider will likely be included within the issued figures, and the place Apple’s future may lead for the approaching 12 months.
JP Morgan
In an April 28 observe to buyers, JP Morgan analysts have been feeling constructive about AAPL, each for Q2 and Q3.
For Q2, the income estimate was raised from $93.5 billion to $95.8 billion, whereas the earnings per share was upped from $1.59 to $1.66. The reasoning was a pull-forward of demand for Apple merchandise as a result of early-year risk of tariffs prompting earlier shopper upgrades, in addition to for retailers to spice up their inventories.
The logic continues with the Q3, which JP Morgan believes is “higher than feared” at $90.8 billion income, $1.51 EPS. The uncertainty of the tariff state of affairs ought to equate to extra pull-forward and better gross sales, particularly as a consequence of seeing the early results of tariff selections.
On the time, JP Morgan maintained its “Obese” score and a $245 worth goal.
Morgan Stanley
In an April 28 observe to buyers, Morgan Stanley forecast that Apple ought to modestly exceed the consensus in Q2, however the tariff backdrop introduces some downsides to Q3.
For the Q2 outcomes, the forecast is $95.7 billion and an EPS of $1.64. Product pull-forward could have been robust due to the tariffs, in addition to benefiting from a weaker greenback total. Providers is predicted to develop 12% year-on-year.
With regards to Q3, Morgan Stanley too thinks that it will likely be a better-than-feared state of affairs. Its mannequin for the June quarter is for the “risky” U.S. tariff coverage to relaxation at a 20% tariff for all exempted merchandise manufactured in China, which might have an effect on iPhone, iPad, and Mac, and a 145% fee on Chinese language AirPods, versus 10% for Vietnam-produced AirPods.
Morgan Stanley considers Apple’s inventory to be “Obese” with a worth goal of $235, up from $220.
Wedbush
On April thirteenth, Wedbush lowered its full-year earnings per share estimates for Apple, from $7.44 per share for the 12 months to $7 flat. Wedbush’s consensus estimate places Apple at $7.28 for the full-year earnings
Wedbush holds an “Outperform” score for Apple, with a $250 worth goal.
Goldman Sachs
On March 6, Goldman Sachs reaffirmed its “Purchase” score for Apple, with a worth goal of $294.
The choice adopted Apple’s March Mac updates, which Goldman Sachs analysts believed would assist Apple attain a Q2 income development goal. That development is not huge, with low to mid single-digit motion anticipated at round 6%, and an estimated income determine of $95.9 billion.
Evercore
On April 15, Evercore believed Apple was poised for upside within the quarter, however mentioned the main target is on Q3, and the way Apple offers with the tariffs. This included utilizing plane and its logistical prowess to import merchandise into america.
General, Evercore maintained its “Outperform” score for the inventory, with a worth goal of $250.
UBS
On April 14, a UBS observe to buyers provided that Apple had a robust monetary well being rating. It had a sturdy place with $137.53 in EBITDA and a 46.5% gross revenue margin that served as a buffer of kinds towards regulatory points just like the tariffs.
It maintained a “Impartial” score for Apple, with a worth goal of $236.