- Apple (AAPL) stock dropped nearly 3% in Thursday’s after-hours trading, despite Q2 earnings of $1.65 per share, beating estimates by $0.03. However, Services revenue came in at $26.65 billion, slightly below the $26.70 billion forecast, contributing to investor concerns.
- iPhone revenue rose to $46.8 billion, exceeding $45.8 billion estimates, while wearables dropped to $7.5 billion and Greater China sales hit $16 billion, down from $16.4 billion.
- Apple raised its dividend 4% to $0.26 per share, authorized a $100 billion stock buyback, and CEO Tim Cook noted no tariff-driven demand shifts.
Apple (AAPL) stock dipped 2.56% to $207.80 in Thursday after-hours trading, reflecting investor disappointment with the Services division’s performance, which reported $26.65 billion in revenue against expectations of $26.70 billion, despite the company’s overall strong second-quarter results. The iPhone maker posted earnings of $1.65 per share, beating the consensus estimate of $1.62 by $0.03, with revenues climbing 5.1% year-over-year to $95.36 billion, closely aligning with the $94.54 billion forecast. iPhone revenue reached $46.8 billion, surpassing estimates of $45.8 billion and last year’s $46.0 billion, while wearables revenue fell to $7.5 billion, below the $8.1 billion expected, and Greater China sales totaled $16 billion, down from $16.4 billion a year ago.
The company’s board bolstered shareholder returns by increasing the quarterly dividend by 4% to $0.26 per share, payable on May 15, 2025, to shareholders of record as of May 12, 2025, and authorizing a $100 billion stock repurchase program. CEO Tim Cook, addressing concerns about President Trump’s proposed tariffs, told CNBC that Apple did not observe any demand pull-forward in the first quarter due to tariff uncertainties, a critical point as analysts await his comments on navigating these policies. Wall Street anticipates third-quarter guidance of $1.48 in earnings per share on $89.45 billion in sales, with particular focus on how Apple will manage supply chain challenges and maintain growth in its high-margin Services segment, which includes offerings like Apple Music and iCloud.
Apple’s performance underscores its resilience in a competitive technology landscape, driven by strong iPhone demand, which remains the cornerstone of its revenue stream. However, the slight miss in Services and weaker wearables sales highlight challenges in diversifying revenue amid economic and geopolitical uncertainties. The company’s significant cash flow continues to support aggressive capital return strategies, reinforcing investor confidence despite near-term headwinds. As Apple prepares to outline its third-quarter outlook, its ability to adapt to tariff-related disruptions and sustain innovation will be pivotal in maintaining its market leadership.
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