Apple (AAPL) closed out its Fiscal 2025 on a strong note. The better-than-expected Q4 results reflect strong demand for the company’s latest iPhone 17 lineup and continued strength in its high-margin Services segment. Following the earnings, AAPL stock jumped 5% in the after-hours trading session.
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Earnings per share (EPS) of $1.85 climbed 13% year-over-year and topped consensus estimates of $1.78. Also, Q4 revenue totaled $102.5 billion and was marginally ahead of the $102.17 billion expected by analysts. Overall sales were up 8% from a year earlier.
The tech giant also reported that its iPhone sales grew 6% year-over-year to $49 billion during the quarter. Further, Apple’s Q4 Mac sales jumped 12.8%, while iPad revenue remained flat year-over-year. Coming to the Services segment, Apple reported revenues of $28.8 billion, up 15.1% from the same quarter last year.
Further, Apple’s CFO Kevan Parekh said, “And thanks to our very high levels of customer satisfaction and loyalty, our installed base of active devices also reached a new all-time high across all product categories and geographic segments.”
Holiday Quarter Outlook
In an interview with CNBC, CEO Tim Cook shared that Apple expects fiscal Q1 revenue to grow between 10% and 12%, reaching $136.7 billion to $139.2 billion, well above the $131.82 billion forecast.
He also highlighted that iPhone sales are on track for double-digit growth and that Apple anticipates a return to growth in China. For reference, the company reported a 3.6% drop in sales in China in the September-ended quarter.
Cook further confirmed that an AI-enhanced version of Siri is slated for release next year, with plans to integrate additional AI models gradually over time.
Is AAPL Stock a Buy?
Turning to Wall Street, Apple stock has a Moderate Buy consensus rating based on 20 Buy, 12 Hold, and three Sell recommendations assigned in the last three months. The average AAPL price target of $264.07 implies 2.67% downside risk from current levels.
These analyst estimates are likely to change after the company’s financial results.
