Apple Reports Record $416 Billion Revenue for FY 2025, Services Revenue Hits All-Time High
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Should l Buy AAPL?
Source: Fool
- Outstanding Financial Performance: Apple achieved a record revenue of $416 billion in FY 2025, with Q4 revenue reaching $102.5 billion, an 8% year-over-year increase, reflecting strong market demand and effective business strategies.
- iPhone Sales Growth: Apple is expected to ship 247.4 million iPhones in 2025, a 6.1% year-over-year increase, driven by the successful launch of the iPhone 17, further solidifying Apple's leadership in the smartphone market.
- Record Services Revenue: Apple's services revenue grew 15% year-over-year to $28.75 billion in the latest earnings report, with a high gross margin of approximately 75%, making it a significant profit engine that surpassed total sales from all non-iPhone products combined.
- Optimistic Future Outlook: Apple anticipates a revenue growth of 10%-12% in Q1 2026, with analysts raising the current quarter's earnings per share estimate to $2.67, indicating strong confidence in Apple's continued profitability.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AAPL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 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.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 269.480
Low
230.00
Averages
299.69
High
350.00
Current: 269.480
Low
230.00
Averages
299.69
High
350.00
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, Apple Vision Pro and others.
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.
Apple's Earnings Exceed Expectations, iPhone Sales Surge
- Strong Financial Results: Apple reported a 16% year-over-year sales increase for Q1 2026, reaching $143.8 billion, surpassing the company's forecast of 10% to 12% growth, indicating robust market demand and business resilience.
- Surge in iPhone Sales: iPhone revenue grew by 23% year-over-year, setting new sales records across all regions, driven by the successful launch of the iPhone 17, with sales growth expected to continue at 13% to 16% in the current quarter.
- Active Device Count: Apple now boasts 2.5 billion active devices, creating significant monetization opportunities in its high-margin services segment, which is projected to enhance the company's profits and margins as service revenue increases.
- Optimistic Long-Term Outlook: Despite facing legal challenges and tariff issues, Apple demonstrates a strong business model, as historical precedents show these challenges have not led to catastrophic outcomes for tech giants, suggesting continued growth momentum ahead.
See More
Eli Lilly Surges Amid Tech Rotation
- Market Divergence: The ongoing rotation out of tech stocks has led to a divided stock market, indicating selective preferences among investors that could influence future capital flows.
- Eli Lilly's Strong Performance: Eli Lilly's stock surged amidst market volatility, reflecting investor confidence in its growth potential, which may attract more capital into the company.
- Google's Positive Earnings: Following its earnings report, Google's stock rose, showcasing its strong financial performance and future capital spending plans, which could bolster market confidence in tech stocks.
- Capital Expenditure Plans: Google's announcement of substantial capital expenditure plans is expected to drive long-term growth and potentially enhance its market share and competitiveness in the tech sector.
See More
Apple Inc. Faces Valuation Risks Amidst Growth Concerns
- Overvaluation Concerns: A detailed DCF analysis indicates that Apple Inc.'s current market price is approximately 128% above its intrinsic value, suggesting that investors may be overly optimistic about its growth potential, which poses material downside risks.
- Financial Metrics Insight: As of January 28, Apple's share price stood at $256.44, with trailing and forward P/E ratios of 34.62 and 31.15 respectively, reflecting strong operational performance but also highlighting the risks associated with high valuations.
- Cautious Investor Sentiment: While Apple's brand strength and ecosystem remain compelling, the limited margin of safety in the current stock price necessitates a cautious approach from investors, especially given the maturity of its core markets.
- AI Investment Alternatives: Despite Apple's dominant position in technology, some analysts believe that certain AI stocks may offer higher returns in the short term, suggesting that investors consider these potentially more attractive investment opportunities.
See More
Tech Rotation Continues, Eli Lilly Soars
- Market Divergence: The ongoing rotation out of tech stocks has led to a divided market, yet Eli Lilly's stock surged, indicating strong performance in the current market environment and potentially attracting more investor interest.
- Eli Lilly's Performance: The rise in Eli Lilly's stock reflects optimistic market expectations regarding its future growth potential, particularly due to positive developments in new drug research and market expansion, which may further drive its stock price upward.
- Google's Earnings Bounce: Following its earnings report, Google's stock rose, suggesting investor confidence in its massive capital spending plans, which are expected to drive future revenue growth and market share expansion.
- Capital Expenditure Strategy: Google's capital spending plans are viewed as part of its long-term strategy aimed at enhancing technological infrastructure and innovation capabilities, thereby maintaining a competitive edge in a fiercely contested market.
See More
Alphabet's 2026 Capex Forecast Exceeds Expectations
- Capex Expectations: Alphabet anticipates its 2026 capital expenditures will range from $175 billion to $185 billion, with the upper limit more than double its 2025 spending, indicating a significant commitment to AI infrastructure despite Wall Street's concerns about increased spending.
- Cloud Business Growth: The backlog in Google's cloud unit surged 55% sequentially and more than doubled year-over-year to $240 billion by the end of Q4, highlighting the company's robust performance in meeting customer demand for AI services, even as the overall software sector has lost 30% of its value in the last three months.
- AI User Growth: The monthly active users of Google's flagship AI app Gemini increased from 650 million to 750 million, demonstrating growing market acceptance of AI products and reflecting the strategic significance of the partnership with Apple to enhance the Siri virtual assistant.
- Infrastructure Investment: In 2025, Alphabet allocated approximately 60% of its capital expenditures to servers and 40% to data centers and networking equipment, indicating that ongoing investments in technical infrastructure will support future demand for AI services.
See More
TSMC Plans Major Expansion in Japan for 3nm Chip Production
- Expanded Investment: TSMC plans a significant expansion in Kumamoto, Japan, with total investments expected to reach approximately $17 billion, marking a strategic upgrade from mature chip technologies to advanced 3nm chip production, thereby reinforcing its leadership in the global semiconductor market.
- Increased Government Support: The Japanese government has already provided substantial subsidies for TSMC's expansion in Kyushu and is considering additional financial backing for the new plan, which not only highlights the government's commitment to the semiconductor industry but also provides strong support for TSMC's investments.
- Signal of Technological Shift: TSMC had initially planned to invest around $12.2 billion in its second Kyushu fab to produce 6- to 12-nanometer chips, but it is now expected to discuss revisions to that plan with Japanese authorities, indicating its focus on advanced technologies and rapid response to market demands.
- AI Demand Fuels Growth: TSMC's expansion plans come amid surging global demand driven by AI, with the company reporting quarterly revenue of $33.73 billion in January 2026, up over 20% year-over-year and exceeding analyst expectations, showcasing its strong market performance and future growth potential.
See More
Apple's Earnings Exceed Expectations, iPhone Sales Surge
- Strong Financial Results: Apple reported a 16% year-over-year sales increase for Q1 2026, reaching $143.8 billion, surpassing the company's forecast of 10% to 12% growth, indicating robust market demand and business resilience.
- Surge in iPhone Sales: iPhone revenue grew by 23% year-over-year, setting new sales records across all regions, driven by the successful launch of the iPhone 17, with sales growth expected to continue at 13% to 16% in the current quarter.
- Active Device Count: Apple now boasts 2.5 billion active devices, creating significant monetization opportunities in its high-margin services segment, which is projected to enhance the company's profits and margins as service revenue increases.
- Optimistic Long-Term Outlook: Despite facing legal challenges and tariff issues, Apple demonstrates a strong business model, as historical precedents show these challenges have not led to catastrophic outcomes for tech giants, suggesting continued growth momentum ahead.
See More
Eli Lilly Surges Amid Tech Rotation
- Market Divergence: The ongoing rotation out of tech stocks has led to a divided stock market, indicating selective preferences among investors that could influence future capital flows.
- Eli Lilly's Strong Performance: Eli Lilly's stock surged amidst market volatility, reflecting investor confidence in its growth potential, which may attract more capital into the company.
- Google's Positive Earnings: Following its earnings report, Google's stock rose, showcasing its strong financial performance and future capital spending plans, which could bolster market confidence in tech stocks.
- Capital Expenditure Plans: Google's announcement of substantial capital expenditure plans is expected to drive long-term growth and potentially enhance its market share and competitiveness in the tech sector.
See More
Apple Inc. Faces Valuation Risks Amidst Growth Concerns
- Overvaluation Concerns: A detailed DCF analysis indicates that Apple Inc.'s current market price is approximately 128% above its intrinsic value, suggesting that investors may be overly optimistic about its growth potential, which poses material downside risks.
- Financial Metrics Insight: As of January 28, Apple's share price stood at $256.44, with trailing and forward P/E ratios of 34.62 and 31.15 respectively, reflecting strong operational performance but also highlighting the risks associated with high valuations.
- Cautious Investor Sentiment: While Apple's brand strength and ecosystem remain compelling, the limited margin of safety in the current stock price necessitates a cautious approach from investors, especially given the maturity of its core markets.
- AI Investment Alternatives: Despite Apple's dominant position in technology, some analysts believe that certain AI stocks may offer higher returns in the short term, suggesting that investors consider these potentially more attractive investment opportunities.
See More
Tech Rotation Continues, Eli Lilly Soars
- Market Divergence: The ongoing rotation out of tech stocks has led to a divided market, yet Eli Lilly's stock surged, indicating strong performance in the current market environment and potentially attracting more investor interest.
- Eli Lilly's Performance: The rise in Eli Lilly's stock reflects optimistic market expectations regarding its future growth potential, particularly due to positive developments in new drug research and market expansion, which may further drive its stock price upward.
- Google's Earnings Bounce: Following its earnings report, Google's stock rose, suggesting investor confidence in its massive capital spending plans, which are expected to drive future revenue growth and market share expansion.
- Capital Expenditure Strategy: Google's capital spending plans are viewed as part of its long-term strategy aimed at enhancing technological infrastructure and innovation capabilities, thereby maintaining a competitive edge in a fiercely contested market.
See More
Alphabet's 2026 Capex Forecast Exceeds Expectations
- Capex Expectations: Alphabet anticipates its 2026 capital expenditures will range from $175 billion to $185 billion, with the upper limit more than double its 2025 spending, indicating a significant commitment to AI infrastructure despite Wall Street's concerns about increased spending.
- Cloud Business Growth: The backlog in Google's cloud unit surged 55% sequentially and more than doubled year-over-year to $240 billion by the end of Q4, highlighting the company's robust performance in meeting customer demand for AI services, even as the overall software sector has lost 30% of its value in the last three months.
- AI User Growth: The monthly active users of Google's flagship AI app Gemini increased from 650 million to 750 million, demonstrating growing market acceptance of AI products and reflecting the strategic significance of the partnership with Apple to enhance the Siri virtual assistant.
- Infrastructure Investment: In 2025, Alphabet allocated approximately 60% of its capital expenditures to servers and 40% to data centers and networking equipment, indicating that ongoing investments in technical infrastructure will support future demand for AI services.
See More
TSMC Plans Major Expansion in Japan for 3nm Chip Production
- Expanded Investment: TSMC plans a significant expansion in Kumamoto, Japan, with total investments expected to reach approximately $17 billion, marking a strategic upgrade from mature chip technologies to advanced 3nm chip production, thereby reinforcing its leadership in the global semiconductor market.
- Increased Government Support: The Japanese government has already provided substantial subsidies for TSMC's expansion in Kyushu and is considering additional financial backing for the new plan, which not only highlights the government's commitment to the semiconductor industry but also provides strong support for TSMC's investments.
- Signal of Technological Shift: TSMC had initially planned to invest around $12.2 billion in its second Kyushu fab to produce 6- to 12-nanometer chips, but it is now expected to discuss revisions to that plan with Japanese authorities, indicating its focus on advanced technologies and rapid response to market demands.
- AI Demand Fuels Growth: TSMC's expansion plans come amid surging global demand driven by AI, with the company reporting quarterly revenue of $33.73 billion in January 2026, up over 20% year-over-year and exceeding analyst expectations, showcasing its strong market performance and future growth potential.
See More
