iPhone sales pump up Apple’s third-quarter earnings, but iPad sales slump

Apple held its third quarter 2025 financial results on Thursday, and the company posted revenue of $94.0 billion, a 10 percent year-over-year increase, and quarterly diluted earnings per share of $1.57. The company reported $23.4 billion in profit.

Analysts had predicted revenue of under $90 billion, which Apple comfortably beat by 6 percent. The stock price rose by several dollars in after-hours trading.

The iPhone led revenue with $44.5 billion, a massive 13.5 percent boost over the same quarter a year ago. Apple Services saw a boost of $3 billion year-over-year, boosting it to another quarterly record. Mac sales were also up nearly 15 percent.

The iPad, which generated $6.6 billion, saw a 7 percent slide year-over-year. Apple updated the iPad Pro with M4 chips in May, but the iPad Pro is a low-volume product. Apple’s more affordable tablets were refreshed earlier this year: iPad Air was updated in March with an M3 chip, along with the A16-equipped 11th-generation iPad.

The other product category that was down for Apple was Wearables, Home, and Accessories, with an 8.6 percent decrease year-over-year. This category is mainly bolstered by AirPods and Apple Watch, both of which are due to get updates this fall.

“Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac, and Services and growth around the world, in every geographic segment,” said Apple CEO Tim Cook in a press release. “At WWDC25, we were excited to introduce a beautiful new software design that extends across all of our platforms, and we announced even more great Apple Intelligence features.”

Trade tariffs have been a concern for businesses and consumers, and Cook provided some insight as to how they affected Apple this past quarter. Cook stated that Apple paid about $800 million in tariffs, and for the next quarter, projected a tariff impact of $1.1 billion if the current situation does not change.

When asked about Apple’s AI development, Cook stated that the company “significantly” boosted its investment in AI, but he did not offer specifics. “I’m not putting specific numbers behind that at this point,” said Cook, “but you can probably tell in the guidance that things are moving up. We are also reallocating a fair number of people to focus on AI features within the company.”

Apple declared a cash dividend of $0.26 per share of common stock payable on August 14 to shareholders of record at the close of business on August 11. The company holds a conference call to discuss the earnings at 5 p.m. ET, and we’ll update this story with any news of note.