Apple (NASDAQ:AAPL) is by far the world’s largest company. The stock hasn’t been doing too well over the past few months, but it has been on a solid long-term trajectory. AAPL is down some 7% from its December 2024 peak and has just started to recover. It is one of the Big Tech companies that shrugged off the DeepSeek spook and has continued to recover, and a lot hinges on its Q1 2025.
Apple reported record revenue of $124.3 billion, which is up 4% year-over-year. Analysts expected $124 billion to $124.39 billion in revenue in Q1 2025. Thus, this is a narrow beat at the high end of expectations. Operating income grew 6% to $42.8 billion
It also reported an EPS of $2.401. Analysts expected EPS of $2.35. This is a 10% year-over-year increase in diluted EPS and beats estimates by some 2.1%.
iPhone revenue has slowed down in the past couple of years, and it is a key metric for Apple. It came in at $69.14 billion, down 0.8% from $69.7 billion last year. Analysts expected 2% growth, with iPhone revenue at $70.72 billion. As such, this is a notable miss despite being the holiday quarter.
Apple has been struggling with innovation and getting its growth figures up for a long time. There haven’t been any new revolutionary products, and even the company’s Apple Vision Pro product didn’t make much of a splash. It seems it doesn’t matter, as Apple’s moat remains strong, and the company’s software side continues to generate solid growth and profits. Services revenue reached a new all-time high of $26.34 billion, up 14% year-over-year. This helped offset hardware softness.
There will likely be a slew of Wall Street analysts upgrading or downgrading the stock in the coming days as the earnings were quite resilient. But the iPhone faced challenges.