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
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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.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 272.140
Low
239.00
Averages
306.89
High
350.00
Current: 272.140
Low
239.00
Averages
306.89
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.

Shareholder Proposal Rejected: Apple shareholders have rejected a proposal that requested a report on the company's entanglements with China during the annual general meeting.
Focus on China Relations: The proposal aimed to address concerns regarding Apple's business operations and dependencies in China, highlighting the ongoing scrutiny of corporate ties to the region.
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Executive Pay: Among the approved proposals was the compensation for one of Apple's executives.
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- Commitment to U.S. Manufacturing: Apple announced the establishment of a new factory in Houston for Mac mini production, marking the first time this product will be made in the U.S., which is expected to create thousands of jobs and further solidify Apple's position in American manufacturing.
- Advanced Manufacturing Center: Apple will open a 20,000-square-foot Advanced Manufacturing Center in Houston to provide training in advanced manufacturing skills, helping students and businesses enhance their technical capabilities and drive the future of U.S. manufacturing.
- AI Server Production Ahead of Schedule: The production of advanced AI servers in Houston has commenced ahead of schedule, with servers being used in data centers nationwide, demonstrating Apple's ongoing leadership in technological innovation and production efficiency.
- Investment and Partnerships: Since committing to a $600 billion investment last year, Apple has exceeded its target by sourcing over 20 billion U.S.-made chips, further advancing the U.S. semiconductor industry and its partnerships with local manufacturers.
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- Production Relocation Plan: Apple plans to shift some production of its Mac Mini desktop computers from Asia back to the U.S., with operations expected to commence later this year, indicating the company's commitment to investing in U.S. manufacturing.
- Partner Selection: The production will take place at a Foxconn facility in north Houston, reflecting Apple's ongoing partnership with Foxconn while potentially boosting local employment opportunities in the area.
- Market Reaction Anticipation: This move may enhance Apple's competitiveness in the U.S. market, particularly as consumer preferences increasingly favor domestic production, likely attracting more attention and support.
- Strategic Implications: By relocating production lines to the U.S., Apple can not only reduce transportation costs but also better navigate uncertainties in the global supply chain, thereby improving overall operational efficiency and responsiveness.
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- Nasdaq Leads: By noon ET, the Nasdaq Composite index rose by 1.24%, outpacing the S&P 500's 0.78% and the Dow Jones Industrial Average's 0.59%, indicating strong performance from tech stocks driving market momentum.
- Tech Giants' Significant Contribution: Nvidia, Apple, and Microsoft account for 26% of the Nasdaq's total weight, compared to just 18% on the S&P 500, highlighting the disproportionate influence of tech stocks on the Nasdaq index.
- Dow's Different Performance: The Dow Jones index is price-weighted, resulting in a combined weight of only 10.6% for Nvidia, Apple, and Microsoft, illustrating structural differences compared to the Nasdaq, although Microsoft remains the third-largest mover on the Dow today.
- Financial Stocks Rebound: Financial service stocks like Goldman Sachs and IBM rose by about 3%, with Goldman’s share price at $919 and an index weight of 11.3%, reflecting a positive market reaction in the absence of new tariffs and economic policies.
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- TSMC Market Dominance: As the world's largest contract chipmaker, TSMC achieved a 36% revenue growth in 2025, primarily driven by strong demand in its high-performance computing (HPC) segment, particularly for Nvidia's high-end data center chips, thereby solidifying its core position in the semiconductor market.
- Technological Leadership: By being the first to adopt ASML's extreme ultraviolet (EUV) lithography technology, TSMC ensures it maintains a leading edge in producing the smallest 2nm chips, with expectations of nearly 25% CAGR from 2024 to 2029, further driving long-term growth.
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- Improving Profitability: Nebius's adjusted EBITDA improved from negative $266 million to negative $65 million, with expectations of turning positive in 2025 and nearly doubling by 2027, indicating its business model is maturing amidst the AI boom, attracting more investor interest.
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