Live: Apple (Nasdaq: AAPL) Blows Out Earnings – But Will Shares Soar?

Apple’s conference call has ended and shares are up 3%.

Overall, the company did a lot tonight to push the narrative they’ll be aggressive to catch up in AI and that device sales are rebounding.

It’s a good quarter for Apple that might start turning around what’s been a disappointing 2025.

TD Cowen Analst:

Tim, I was curious about your thoughts on AI for edge devices. There’s like some people who think that LLM could be a commodity in the future. Do you think — do you see a scenario where the LLM become a third part of your iOS or is the SLM the way to go and how to think about evolution of edge devices in a futuristic AI world and is smartphone going to be the choice of device. Just curious your thoughts on it, broadly speaking.

Timothy Cook Chief Executive Officer

The way that we look at AI is that it’s 1 of the most profound technologies of our lifetime. And I think it will affect all devices in a significant way what pieces of the chain are commoditized and not commoditized, I wouldn’t want to to really talk about today. because that gives away some things on our strategy. But I think it’s a good question. .

Here’s what Tim Cook had to say about Apple’s surprising momentum in China last quarter:

“Yes. We did grow in Greater China by 4% during the quarter versus the previous quarter, it was driven by an acceleration by iPhone, although we also had substantial growth on the MAC year-over-year. From a — as you know, the government has placed certain subsidies that affects some of our products, not all of them, but there are some of them. And I think that had some effect. It was the first full quarter of the subsidy playing out. that cut in during a portion of the previous quarter.

The other things I would say are that the installed base hit a record high in Greater China — and we set an all-time record for the iPhone installed base. The iPhone upgraders in Mainland China set a record for the June quarter. And according to Boral Panel, which was formerly known as Kantar, iPhone had the top 3 models in Urban China, which is extraordinary. Also, if you look at the other products, Mac, iPad and watch, the majority of customers that are buying in China Mainland were new to the product. So lots of good things there.

And the other thing I would point out, which is an interesting point, The MacBook Air was the top-selling laptop model in all of China, and the Mac Mini was the top-selling desktop model in all of China. So overall, a positive — very positive quarter.”

“I would say, a pretty significant driver as Tim talked about, is the fact we are increasing our investment significantly in AI. So that is certainly a component of it. As you know, we’ve been investing in private cloud compute, which is also in our first-party data centers. The other piece, as you know, is we do have a hybrid strategy where in cases we do use third parties to make capital investments, and we also invest in our own. So you are going to see an increase in CapEx. We also, from time to time, have other investments in facilities in tooling, but I would say a significant portion of the driver of growth that you’re seeing now is really driven by some of our AI-related investments.”  – Kevan Parekh, Apple CFO

On Apple’s conference call they just said they incurred $800 million in tariff-related costs last quarter.

Apple’s conference call is coming soon. We’ll post highlights.

To receive them: simply leave this blog open and an update will post after we’ve been able to listen in.

Shares are gaining momentum. Investors seem pleased with iPhone sales and services growth (up 13% year-over-year).

• Apple: Up 2.2%
• Amazon:  Down 3.1%
• Cloudflare: Up 5.5%
• Roku: Up 2%
• Reddit: Up 20.5%

Apple shares have recovered a bit and are now up 2% after hours again. Here’s what the recent (and long-term) picture looks like:

Apple Inc. reported its fiscal 2025 third-quarter results, showcasing a strong performance with a 10% year-over-year increase in revenue, reaching $94.0 billion.

The company also achieved a 12% increase in diluted earnings per share, which stood at $1.57.

This growth was driven by double-digit increases in iPhone, Mac, and Services revenue across all geographic segments.

The services segment reached a new all-time high, contributing significantly to the overall revenue. Apple’s CEO, Tim Cook, highlighted the company’s success at the WWDC25 event, where new software designs and Apple Intelligence features were introduced.

The board declared a cash dividend of $0.26 per share, payable on August 14, 2025. The earnings call is scheduled for July 31, 2025. Despite the positive results, Apple acknowledged potential risks related to global economic conditions and competitive markets.

iPhone net sales hit $44.58 billion, that’s way ahead of Wall Street expectations and were responsible for almost the entire quarter’s beat.

Apple hit $94 billion in earnings which is more than a 5% beat (analysts expected $89.2 billion).

That’s a massive sales beat.

Yet, shares continue trending down. They’re now up a little more than 1%. We’ll continue digging into why enthusiasm hasn’t kept up from the initial ‘pop.’

It looks like the bleeding has stopped in China, Apple saw growth in the region. That’s a big win for Apple shareholders.

Initial gains are now fading, up about 1.7%.

Shares are up 2.4% immediately.

Earnigns are out and Apple beats!

Hang tight, Apple earnings are expected before 4:30 p.m. ET.

Apple earnings still haven’t been posted. Amazon earnings are down about 2.6% on weak operating income guidance.

The market has closed and we’re watching for earnings. We’ll update this live blog as soon as we see Apple earnings.

How does the Magnificent 7 stack up headed into tonight’s earnings? Here are the year-to-date returns for each stock:

• Meta: Up 29%
• NVIDIA: Up 28.6%
• Microsoft: Up 27.5%
• Amazon: Up 6.4%
• Alphabet: Up 1.1%
• Apple: Down 14.7%
• Tesla: Down 18.3%

As you can see, Apple isn’t in dead last… But it’s close. Investors are well aware that Apple needs to find its footing in AI and momentum could reverse. The question is what the company will say on its earnings call tonight.

Here’s what Wall Street expects from Apple tonight:

• Revenue: $89.2 billion
• EPS: $1.43
• Operating Cash Flow: $25.7 billion
• Gross Margin: 46%

Here are some key areas to watch this quarter:

• U.S. telcos reported 22% equipment sales growth in the second quarter, which is the strongest rate in six quarters. That’s a positive development for Apple.
• What are the impacts of tariffs and what will Apple’s management have to say about their lasting impacts?