Apple Services Revenue Grows 13% to New Record, Earnings Massively Beat Street Amid Trump Tariff Uncertainty

Apple continued to drive double-digit growth in its Services business, which increased revenue 13.3% to $27.42 billion for the June 2025 quarter — a new record. The tech giant easily beat Wall Street expectations, even as the threat of new U.S. tariffs continues to loom.

Overall, the company posted revenue of $94.04 billion, up 10%, and a net profit of $23.43 billion (or $1.57 per share, up 12%) for the June quarter, which is Apple’s Q3 of fiscal 2025. It was Apple’s biggest year-over-year revenue increase since the December 2021 quarter. Analysts had forecast EPS of $1.43 on revenue of $89.54 billion, with services revenue coming in at $26.8 billion.

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Apple’s Services segment includes the App Store, Apple Pay, Apple TV+, Apple Music and iCloud. The company doesn’t report segment profit or detail revenue of individual services. Sales of iPhones — which are Apple’s biggest line of business — increased 12%, to $44.6 billion for the June quarter.

“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,” Apple chief Tim Cook said in prepared remarks.

On the AI front, Cook told analysts on the earnings call that Apple is “significantly growing our investments” in the sector. Cook also said the company is “open to M&A that accelerates our roadmap.”

The results come amid uncertainty about how President Trump’s tariffs will affect Apple in the months ahead. In May, Trump warned Apple that he would impose a tariff of “at least 25%” on iPhones manufactured overseas. “I have long ago informed Tim Cook of Apple that I expect their iPhone’s [sic] that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote in a social media post.

Apple said it incurred $800 million in tariff costs in the June quarter (below its previous forecast of $900 million). Cook, on the earnings call with analysts, said in the September quarter that it expects to incur about $1.1 billion in tariff costs, with the assumption that the tariff situation does not change.

Meanwhile, the company’s Apple TV+ division has its first bona-fide theatrical hit in “F1: The Movie.” The Brad Pitt-starrer, which was released June 27 with Warner Bros. as domestic distributor, has grossed nearly $513 million at the global box office to date.