Apple reports record revenue for 1Q24/25 📊

Apple has released its financial results for 1Q24/25. The company managed to slightly exceed revenue expectations, although, as feared by the market, data from the Chinese market turned out to be highly disappointing. Additionally, the iPhone segment recorded a year-over-year decline. However, it seems that the market had already anticipated the sentiment toward Apple, as the stock price only saw a slight 1.3% drop following the earnings report.

The company's stock is slightly down in after-hours trading. Source: xStation

While the financial results were not a major breakthrough, during the post-earnings conference, Apple’s CEO extensively discussed artificial intelligence and the Apple Intelligence project. Tim Cook stated that the company is working intensively on implementing AI solutions in additional languages. At the same time, although Apple maintains that its Apple Intelligence technology is groundbreaking in terms of both privacy solutions and artificial intelligence as a whole, it currently appears to be more of an attempt to align itself with the overall positive momentum surrounding AI.

At the revenue level, the company reported $124.3 billion, marking the highest quarterly revenue in Apple’s history and slightly exceeding consensus estimates. However, results from the Chinese market, one of the most closely watched components of the report, were disappointing. Sales in China amounted to $18.51 billion, representing an almost -11% year-over-year decline.

Apple reported gross profit of $58.28 billion (+6.24% YoY) and operating profit of $42.83 billion (+6% YoY). A positive surprise came at the earnings per share (EPS) level, with adjusted EPS at $2.4, exceeding consensus estimates by 2.13% and representing a 10% YoY increase.

Apple’s 1Q24/25 results (in billion $ except EPS). Source: Bloomberg Finance L.P., XTB Research

Looking at individual segments, the services division performed well, achieving nearly 14% year-over-year growth. However, the products segment faced some challenges, with the most significant component, iPhone sales, showing a negative growth rate. On a more positive note, iPad and Mac sales significantly exceeded expectations, surpassing estimates by 10% and 13%, respectively.

Apple’s 1Q24/25 results by segment (in billion $ except EPS). Source: Bloomberg Finance L.P., XTB Research