Apple posts June quarter revenue record

Apple announced quarterly revenue of $94.0 billion for its fiscal 2025 third quarter ended June 28, 2025, marking a 10 percent increase year over year. The company posted quarterly diluted earnings per share of $1.57, up 12 percent from the same period last year.

Tim Cook, Apple's CEO, reported that the June quarter delivered revenue records for total company revenue, iPhone revenue and earnings per share. The results reflected double-digit growth across iPhone, Mac and Services segments, with expansion recorded in every geographic region.

According to Apple's financial statements, Services revenue reached $27.423 billion, representing 12 percent growth compared to $24.213 billion in the prior year quarter. The Services division encompasses various offerings including advertising, the App Store, cloud services, and digital content sales. This segment has become increasingly important as Apple seeks to diversify revenue streams beyond hardware sales.

The company's advertising business contributed to Services growth. According to PPC Land's analysis of Apple's advertising evolution, Apple rebranded its advertising division from "Apple Search Ads" to "Apple Ads" on April 14, 2025, signaling broader ambitions beyond App Store search listings. The name change reflects expanded advertising offerings and potentially signals more comprehensive advertising capabilities across Apple's ecosystem.

For the nine-month period ended June 28, 2025, Services revenue totaled $80.408 billion, compared to $71.197 billion in the corresponding period of 2024. This represents growth of approximately 13 percent year-over-year for the extended period, demonstrating consistent momentum in the Services business throughout fiscal 2025.

Kevan Parekh, Apple's CFO, highlighted that the record business performance generated EPS growth of 12 percent. The company's installed base of active devices reached new all-time highs across all product categories and geographic segments, attributed to high levels of customer satisfaction and loyalty.

iPhone revenue totaled $44.582 billion for the quarter, compared to $39.296 billion in the prior year, representing growth of approximately 13 percent. Mac revenue reached $8.046 billion versus $7.009 billion in the previous year quarter. iPad revenue generated $6.581 billion compared to $7.162 billion in the same period last year, showing a decline of approximately 8 percent.

The Wearables, Home and Accessories category recorded $7.404 billion in revenue compared to $8.097 billion in the prior year quarter. Combined with Services growth, total net sales reached $94.036 billion for the quarter.

Geographic performance showed growth across all segments. Americas revenue totaled $41.198 billion compared to $37.678 billion in the prior year. Europe generated $24.014 billion versus $21.884 billion. Greater China contributed $15.369 billion compared to $14.728 billion. Japan produced $5.782 billion versus $5.097 billion, while Rest of Asia Pacific delivered $7.673 billion compared to $6.390 billion.

Apple's advertising business expansion aligns with broader industry trends. According to PPC Land research on digital advertising growth, European digital advertising achieved €118.9 billion in 2024, surpassing €100 billion for the first time with 16 percent year-over-year growth. Video advertising particularly drove expansion, with display video achieving 24.5 percent growth and social video surging 32.8 percent.

The timing of Apple's strong Services performance coincides with significant developments in its advertising platform. Apple Search Ads expanded to 21 new countries on October 3, 2024, including Turkey, Cyprus, Morocco, and 18 other markets across Europe, Asia, Africa, and the Middle East. This expansion significantly increased Apple's global advertising reach.

Operating income for the quarter reached $28.202 billion, compared to $25.352 billion in the prior year period. For the nine-month period, operating income totaled $100.623 billion versus $93.625 billion in the previous year, reflecting strong operational performance across business segments.

Cash flow from operations generated $81.754 billion for the nine-month period, compared to $91.443 billion in the prior year. The company maintained a strong balance sheet with total assets of $331.495 billion as of June 28, 2025.

Apple's board of directors declared a cash dividend of $0.26 per share, payable on August 14, 2025 to shareholders of record as of August 11, 2025. The dividend represents consistent capital returns to shareholders alongside the company's share repurchase programs.

The quarterly results demonstrate Apple's continued ability to generate strong financial performance across its product and services portfolio. Services revenue growth, supported by advertising expansion and other digital offerings, provides a counterbalance to seasonal hardware variations and contributes to overall revenue stability.

During the quarter, Apple announced several new products including updates to iPad Air, iPad, MacBook Air, and Mac Studio. These product introductions typically impact revenue patterns and can influence channel inventory dynamics as retailers prepare for new product availability.

The company noted that macroeconomic conditions, including inflation, interest rates and currency fluctuations, continue to impact operations. However, the strong quarterly performance suggests Apple's business model demonstrates resilience against external economic pressures.

Research and development expenses increased to $8.866 billion from $8.006 billion in the prior year quarter, reflecting continued investment in product innovation and technology development. Selling, general and administrative expenses totaled $6.650 billion compared to $6.320 billion in the previous year.

Apple's advertising business has evolved significantly beyond its original search-only focus. The platform now offers multiple touchpoints including premium App Store placements on the Today tab and app product pages. This expanded inventory provides increased visibility and targeting opportunities within Apple's ecosystem.

According to PPC Land analysis of Apple's advertising developments, industry analysts suggest Apple may expand advertising options beyond the App Store, potentially offering paid search ads in Apple Maps and other services. The rebrand to "Apple Ads" supports theories about broader advertising ambitions across Apple's platform ecosystem.

The strong Services performance reflects Apple's strategic focus on recurring revenue streams that complement hardware sales cycles. Advertising represents one component of this diversification strategy, alongside subscriptions, digital content sales, and cloud services.

Timeline

• • July 31, 2025: Apple announces Q3 2025 financial results with $94.0 billion revenue, 10% year-over-year growth
• June 30, 2025: Apple Music opens 15,000-square-foot Los Angeles studio as audio advertising market grows 23.6% annually
• April 14, 2025: Apple rebrands Search Ads business to "Apple Ads" amid expansion beyond App Store
• October 16, 2024: Apple advances B2B strategy with Business Connect platform updates
• October 3, 2024: Apple Search Ads expands to 21 new countries across Europe, Asia, and Africa

Key Terms Explained

Services Revenue: Apple's Services segment encompasses advertising, App Store sales, cloud services, and digital content offerings. This division generated $27.423 billion in Q3 2025, representing 12 percent growth and demonstrating Apple's successful strategy to diversify beyond hardware sales into recurring revenue streams that provide stability against cyclical product demand.

Advertising Growth: Apple's advertising business transformed significantly during 2025, expanding from search-only placements to comprehensive advertising solutions across multiple touchpoints. The rebranding from "Apple Search Ads" to "Apple Ads" reflects broader ambitions and increased revenue contribution to the Services segment, aligning with industry trends toward privacy-focused advertising platforms.

Quarterly Revenue: The $94.0 billion quarterly revenue represents a 10 percent year-over-year increase and establishes new records for June quarter performance. This metric demonstrates Apple's ability to maintain growth momentum across diverse product categories and geographic markets while navigating macroeconomic challenges including inflation and currency fluctuations.

Year-over-year Growth: Consistent double-digit expansion across iPhone, Mac, and Services segments indicates sustained demand for Apple products and services. The growth pattern reflects successful product introductions, market expansion initiatives, and strategic investments in advertising capabilities that drive recurring revenue streams beyond traditional hardware sales cycles.

Geographic Segments: Apple's global reach spans Americas, Europe, Greater China, Japan, and Rest of Asia Pacific regions, with growth recorded across all territories. This geographic diversification provides revenue stability and risk mitigation while enabling localized advertising expansion through initiatives like the 21-country Apple Search Ads rollout announced in October 2024.

Apple Intelligence: The announcement of enhanced Apple Intelligence features at WWDC25 represents significant investment in artificial intelligence capabilities. These developments support advertising targeting improvements, content personalization, and user experience enhancements that strengthen Apple's competitive position in the digital advertising ecosystem while maintaining privacy commitments.

Operating Income: The $28.202 billion operating income for Q3 2025 reflects strong operational efficiency and margin management across product lines. This metric demonstrates Apple's ability to convert revenue growth into profitability while investing in research and development, advertising platform expansion, and global market penetration initiatives.

App Store Performance: The App Store contributes significantly to Services revenue through application sales, in-app purchases, and advertising placements. Platform improvements include expanded advertising inventory beyond search listings, enhanced targeting capabilities, and integration with measurement frameworks that provide developers with comprehensive attribution analytics.

Global Expansion: Apple's international growth strategy includes advertising platform expansion to new markets, localized content offerings, and region-specific partnerships. The 21-country Apple Search Ads expansion demonstrates commitment to global advertising revenue opportunities while adapting to local regulatory requirements and market conditions.

Digital Transformation: Apple's evolution from hardware-focused to services-integrated business model reflects broader industry transformation toward subscription-based and advertising-supported revenue streams. This strategic shift positions Apple to capitalize on growing digital advertising markets while maintaining hardware excellence and ecosystem integration advantages.

Summary

Who: Apple Inc., led by CEO Tim Cook and CFO Kevan Parekh, reported quarterly financial results for the third quarter of fiscal 2025.

What: Apple achieved record June quarter revenue of $94.0 billion with 10% year-over-year growth, driven by double-digit expansion in iPhone, Mac, and Services segments. Services revenue reached $27.423 billion, marking significant growth in advertising and other digital offerings.

When: The financial results cover Apple's fiscal 2025 third quarter ended June 28, 2025, with the announcement made on July 31, 2025.

Where: Results reflect global performance across all geographic segments, with growth recorded in Americas, Europe, Greater China, Japan, and Rest of Asia Pacific regions.

Why: The strong performance demonstrates Apple's successful diversification beyond hardware through Services growth, including significant expansion of its advertising business rebranded as "Apple Ads," providing recurring revenue streams that complement cyclical product sales.