Apple Reports $90.15 Billion Revenue for Q4 2025, Driven by Record Services Segment

Apple Closes Fiscal Year 2025 with Strong Fourth Quarter Performance

Apple announced its financial results for the fourth fiscal quarter of 2025 (Q4 FY2025), revealing total revenue of $90.15 billion. The results were underpinned by continued strength in the high-margin Services division, which achieved a new all-time revenue record.

The technology giant reported diluted earnings per share (EPS) of $1.46 for the quarter ending in September 2025. These figures demonstrate the resilience of Apple’s integrated ecosystem, even as hardware sales navigate complex global market dynamics.

The Financial Breakdown: Segment Performance Analysis

The Q4 results confirm the ongoing strategic shift within Apple, where the Services segment is increasingly vital to overall profitability, complementing the massive scale of the iPhone business. The company’s gross margin for the quarter stood at 45.2%, reflecting the favorable mix weighted toward software and subscription revenue.

The breakdown of revenue across Apple’s core product and service categories provides a clear picture of where growth is originating:

Services Segment Sets New Benchmark

The $24.12 billion generated by the Services segment—which includes the App Store, Apple Music, Apple TV+, iCloud, and Apple Pay—was the standout metric. This record performance highlights the success of Apple’s strategy to monetize its massive installed base of over 2 billion active devices globally. The recurring revenue stream from Services offers higher predictability and margins compared to the cyclical nature of hardware sales.

“Our record September quarter results reflect the strength of our ecosystem and the loyalty of our customers, especially as we continue to expand our offerings in Services,” stated Tim Cook, Apple’s CEO. “We are seeing unprecedented engagement across our platforms and are confident in the product pipeline we have lined up for the holiday quarter.”

Hardware Performance: iPhone Stability and Mac/iPad Challenges

While Services captured the spotlight, the iPhone segment remains the largest revenue driver, contributing nearly half of the quarter’s total. The $43.81 billion in iPhone revenue was slightly ahead of analyst consensus, indicating steady demand for the latest models and strong trade-in programs.

In contrast, the Mac and iPad segments faced headwinds, reporting revenues of $7.78 billion and $4.79 billion, respectively. The decline in iPad sales is attributed to difficult year-over-year comparisons following a major product refresh cycle in the previous year, coupled with macroeconomic pressures affecting the broader PC market.

The Wearables, Home and Accessories category, which includes the Apple Watch and AirPods, continued its steady growth trajectory, bringing in $9.65 billion. This segment is often viewed as a key indicator of the health of Apple’s peripheral ecosystem and its ability to attract new users through complementary devices.

Geographic Trends and Capital Returns

Geographically, Apple reported mixed results. Growth was particularly strong in several emerging markets, where the company has focused on expanding its retail presence and financing options. However, the Greater China region showed signs of softening demand, reflecting increased competition and challenging economic conditions in that market.

Luca Maestri, Apple’s CFO, emphasized the company’s robust cash flow generation and commitment to shareholder returns.

“We generated nearly $24 billion in operating cash flow during the September quarter, and our disciplined approach to capital management allowed us to return over $25 billion to shareholders through dividends and share repurchases,” Maestri noted. “We remain focused on investing in long-term growth while maintaining a highly efficient capital structure.”

This substantial return of capital underscores the company’s confidence in its future earnings and its commitment to reducing its net cash position over time.

Key Takeaways for Investors and Consumers

The Q4 FY2025 results solidify Apple’s position as a diversified technology powerhouse, increasingly reliant on its sticky, high-margin software and services business.

• Services Dominance: The $24.12 billion Services revenue is the most critical takeaway, demonstrating successful monetization of the installed base and providing a stable, high-margin foundation for the company.
• iPhone Stability: Despite market saturation concerns, the iPhone segment remains robust, delivering $43.81 billion and proving resilient against competitive threats.
• Capital Discipline: The return of $25 billion to shareholders highlights strong financial health and significant free cash flow generation.
• Hardware Cyclicality: The declines in Mac and iPad revenue underscore the cyclical nature of these markets, which are heavily dependent on product refresh cycles and broader corporate spending.

Outlook and What’s Next

Looking ahead to the crucial holiday quarter (Q1 FY2026), Apple provided guidance that anticipates continued strong performance, particularly driven by the full availability of the latest iPhone models and the seasonal boost in consumer spending.

Analysts will be closely watching the performance in the Greater China region and the continued expansion of the Services segment into new areas, such as augmented reality content and financial products. The company’s ability to maintain its high gross margins will depend heavily on the continued growth of Services relative to hardware sales in the upcoming fiscal year.