Apple’s $95 Billion Sales Quarter Tops Estimates as Tech Giant Warns Tariffs Would Add $900 Million to Costs

Apple surpassed what Wall Street analysts were looking for on Thursday when it shared its January to March earnings, with the world’s most valuable company reporting more than $95 billion in sales during the quarter. And notably, CEO Tim Cook shared an update on how President Trump’s tariff plan would affect the tech giant during the current quarter, saying it would add $900 million to costs.

The strong start to 2025 was bolstered by a record $26.65 billion in revenue for Services, Apple’s wide-ranging sector that includes Apple TV+, Apple Music, and iCloud storage. That big Services quarter helped offset a slight decline in sales from China.

Conspicuously, the tech giant did not mention anything about tariffs, China, or President Trump in its press release accompanying its report. Apple has been in the spotlight lately, as investors and analysts have looked to see how the president’s new tariffs will affect the company, which makes most of its products in China.

But Cook did address the tariffs on Apple’s earnings call on Thursday afternoon, saying they had a “limited impact” on the company between Jan. and March. That has changed since the president announced his “Liberation Day” tariff plan on Apr. 2, with Cook saying that if nothing changes on the tariff front, “we estimate the impact to add $900 million to our costs.”

Cook added it was difficult to “precisely estimate the impact of tariffs, as we are uncertain of potential future actions.” He also said most iPhones sold in the U.S. during the current quarter will come from India, while the “vast majority” of products sold outside the States will still come from China.

Apple’s stock price was down 3% to $206.88 per share in after-hours trading.

Here are the key results from Apple’s second quarter report:

Revenues: $95.36 billion, up 5.10% year-over-year and more than the $94.26 billion that was projected by analysts, according to Zacks Investment Research.

Net income: $24.78 billion, up nearly 5% from last year’s $23.63 billion.

Earnings Per Share: Apple’s diluted earnings per share of $1.65 were better than analyst estimates of $1.61 EPS.

iPhone Sales: Revenue from Apple’s linchpin device increased nearly 2% annually to $46.84 billion. The uptick stands out, considering Apple reported iPhone sales dipped during the final three months of 2024, even as the company reported its best quarterly revenue ever.

Services: As noted above, Apple reported $26.65 billion in sales for its Services sector — up 11.64% from the same time last year. This was the second straight quarter Apple set a company sales record for Services, after Apple posted $26.34 billion in Services revenue during the final months of 2024.

And as is usually the case, Apple did not mention how much its streaming service, Apple TV+, contributed to revenue; the company also does not share how much Apple Music brought in.

Wearables: This was the only sector of Apple’s business that reported a decline in sales. Wearables, which includes Apple Watch and AirPods, reported a 4.94% decline in sales to $7.52 billion.

Heading into Thursday, it has been a relatively challenging year for Apple. The company’s stock price is down 12% since the start of the year — a performance mirrored by the other Big Tech companies so far in 2025.

Notably, Cook joined Elon Musk, Amazon Founder Jeff Bezos, Alphabet boss Sundar Pichai, and Meta CEO Mark Zuckerberg at President Trump’s inauguration in Jan.

The real action for Apple, though, started in April. Apple was rocked by the president’s tariff plan, with the company seeing its valuation drop by $1 trillion in a matter of days after the tariffs were announced.

President Trump’s new tariffs — which now include a 145% tariff on most Chinese imports — has worried Apple analysts and investors since most of the company’s devices are made in China. Apple scrambled to get products into the U.S. before the tariffs went into effect, including flying in 1.5 million iPhones from India. Apple’s stock price has rebounded in recent weeks, recovering most of the $1 trillion that was shaved from its market cap; the company had a $3.20 trillion valuation when markets closed on Thursday.

The Cupertino, Calif.-based company announced on Thursday it was increasing its cash dividend 4% to $0.26 per share, and mentioned its board of directors had authorized a $100 billion stock repurchase plan.

Cook, in his statement accompanying earnings, took a moment to note the company had reduced its carbon footprint.

“Today Apple is reporting strong quarterly results, including double-digit growth in Services,” Cook said. “We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we’ve cut our carbon emissions by 60 percent over the past decade.”

Apple’s report did not mention anything about its artificial intelligence efforts, although Cook briefly touched on AI in his prepared remarks during the company’s earnings call on Thursday afternoon. Cook said Apple’s AI features, like its writing tools and notification summaries, “help users stay focused and get more done.” He also noted Apple Intelligence, as the company calls it, recently started translating more languages.

And one aspect of Apple’s report that stood out: China was the only market where sales declined year-over-year; revenue from China dropped 2.25% to $16.00 billion for the quarter.

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