Apple (AAPL) Stock: Q225 Results Beat Estimates as Services Shine and Buyback Grows
TLDR
Q2 revenue rose 5% to $95.4 billion, slightly ahead of forecasts.
EPS climbed 8% year over year to $1.65.
Services segment delivered double-digit growth.
New $100 billion share buyback was announced.
Shares fell 3% to $206 despite strong results.
Apple Inc. (NASDAQ: AAPL) reported upbeat fiscal Q2 2025 results but saw its stock slide 3.36% to $206.16 in Friday afternoon trading. Investors reacted coolly despite the tech giant delivering revenue and profit growth and expanding its share buyback program.
For the quarter ending March 29, Apple posted revenue of $95.4 billion, up 5% year over year and slightly above Wall Street’s expectations. Diluted earnings per share came in at $1.65, representing an 8% annual increase.
CEO Tim Cook pointed to strong Services performance and the successful debut of the iPhone 16e. “We were happy to welcome iPhone 16e to our lineup and to introduce powerful new Macs and iPads,” Cook said. He also highlighted Apple’s environmental progress, noting a 60% cut in carbon emissions over the past decade.
Services Strength, New Buyback
Services stood out as the engine of growth this quarter, posting double-digit gains as Apple’s installed base of devices hit an all-time high across every region and product category. CFO Kevan Parekh emphasized that Apple generated $24 billion in operating cash flow in Q2 and returned $29 billion to shareholders.
The board approved a 4% dividend hike, declaring a cash dividend of $0.26 per share payable on May 15 to shareholders of record as of May 12. More notably, Apple authorized an additional $100 billion stock buyback program, underscoring its continued commitment to returning cash to investors.
Why Shares Slipped
Despite solid numbers, Apple shares declined following the report. The stock has a 12-month target estimate of $234.85, suggesting potential upside, but the immediate pullback reflects investor concerns about valuation and cautious guidance for the coming quarters.
With its stock now down over 3% on the day, Apple’s market reaction highlights heightened sensitivity around growth expectations. Broader tech market weakness and ongoing concerns about global demand also weighed on sentiment.
Looking Ahead
Apple’s next earnings date is slated between July 30 and August 4, 2025. While product launches like the iPhone 16e and new Macs may support hardware sales, ongoing growth will likely lean on its Services division. The expanded buyback and dividend raise provide shareholder support, but near-term performance will depend on how Apple navigates softening global consumer spending trends. In other news, Apple is expected to introduce iOS 19 next month. It is also expected to be the biggest design overhaul ever.
Apple will introduce iOS 19 next month! 🚨
It’s expected to be the biggest design overhaul ever! pic.twitter.com/W18UV16zT1
— Apple Hub (@theapplehub) May 1, 2025
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Filed under: News - @ May 2, 2025 3:07 pm