Apple Reports $416.1B Revenue for FY2025, Services Segment Grows Significantly

Written by Emily J. Thompson, Senior Investment Analyst

AAPL-1.04%

Source: Fool

Updated: 1h ago

0mins

Source: Fool

Revenue Performance: Apple achieved a total revenue of $416.1 billion for FY2025, with half derived from iPhone sales, despite a 3.8% decline in Greater China sales, indicating strong market demand overall.
Services Segment Growth: The services division generated $109.16 billion in FY2025, reflecting a 13.51% increase from the previous year, showcasing the robust performance of its high-margin business, which helps offset fluctuations in hardware sales.
Market Position: With a market cap of approximately $4 trillion, Apple ranks as the second-largest company globally, and its stock has risen 8% this year, reflecting investor confidence in its long-term growth potential.
AI Strategy: Apple is developing advanced M-series chips to support AI applications, and while its AI efforts are less pronounced than some peers in the Magnificent Seven, its strategy of processing data locally enhances user privacy and strengthens brand trust.

AAPL

$270.835+Infinity%1D

Analyst Views on AAPL

Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 289.17 USD with a low forecast of 225.00 USD and a high forecast of 345.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

35 Analyst Rating

21 Buy

12 Hold

2 Sell

Moderate Buy

Current: 273.670

Low

225.00

Averages

289.17

High

345.00

Current: 273.670

Low

225.00

Averages

289.17

High

345.00

Jefferies

Edison Lee

Hold

maintain

2025-12-17

New

Reason

Jefferies

Edison Lee

Price Target

2025-12-17

New

maintain

Hold

Reason

Jefferies analyst Edison Lee raised the firm's price target on Apple to $283.36 from $246.99 and keeps a Hold rating on the shares. The firm, which raised its Q1 and FY26 iPhone unit estimates by 7% and 3%, respectively, and included a foldable phone as of FY27, believes Apple is highly resilient to memory cost hikes owing to its high average selling prices.

Morgan Stanley

NULL

Overweight

maintain

$305 -> $315

2025-12-17

New

Reason

Morgan Stanley

Price Target

$305 -> $315

2025-12-17

New

maintain

NULL

Overweight

Reason

Morgan Stanley raised the firm's price target on Apple (AAPL) to $315 from $305 and keeps an Overweight rating on the shares. Among the IT Hardware group, the firm recommends being overweight cloud capex winners, product-cycle beneficiaries such as Apple, and unique assets, while it suggests being underweight stocks with elevated memory exposure - like Dell (DELL) and HP (HPQ) - and is "increasingly more cautious" on memory-exposed names as well, the analyst tells investors in a year-ahead note.

Goldman Sachs

James Schneider

Buy

initiated

$420

2025-12-15

Reason

Goldman Sachs

James Schneider

Price Target

$420

2025-12-15

initiated

Buy

Reason

Goldman Sachs analyst James Schneider initiated coverage of SiTime (SITM) with a Buy rating and $420 price target. SiTime is viewed as the leading provider of silicon-based precision timing solutions and the only scaled pure-play MEMS timing company positioned to benefit from the industry shift away from quartz, the analyst tells investors in a research note. Growth is expected to be driven by this transition, expanding opportunities at Apple (AAPL), and AI datacenter tailwinds, with consensus estimates underestimating earnings potential, as 2026-2027 EPS is projected to be about 20% above Street expectations, the firm adds.

Citi

Atif Malik

Buy

maintain

$315 -> $330

2025-12-09

Reason

Citi

Atif Malik

Price Target

$315 -> $330

2025-12-09

maintain

Buy

Reason

Citi analyst Atif Malik raised the firm's price target on Apple to $330 from $315 and keeps a Buy rating on the shares as part of a mid-quarter update. The firm sees iPhone upside in Apple's December and March quarters as iPhone 12 and 13 users enter their upgrade window. Citi upped earnings estimates for Apple to reflect iPhone 17 strength.

About AAPL

Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV and Apple Vision Pro.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.