Apple Services Revenue Increases 15% to Hit New Record in September Quarter, iPhone Sales Short of Forecasts but Cook Promises Year-End Boom

Apple saw a healthy 15% bump in its Services revenue for the most recent quarter, the highest growth rate this year, as it continues to represent the tech giant’s fastest business segment.

Apple’s Services business had record revenue of $28.75 billion for the September 2025 quarter, topping Wall Street forecasts for $28.17 billion. The 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.

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Overall, Apple reported revenue of $102.5 billion, up 8% percent year over year, for its fiscal 2025 fourth quarter ended Sept. 27, 2025. Diluted earnings per share were $1.85, up 13%. That beat analyst consensus estimates of $102.24 billion in revenue and EPS of $1.77.

Sales of iPhone, its largest product line, were $49.03 billion, up 6% year over year. That was a record for Apple for a September quarter — but short of Wall Street analyst expectations of $50.19 billion. The results included only a few weeks of sales of the latest iPhone 17 models, which began shipping Sept. 19.

Apple CEO Tim Cook, on the earnings call, said the December quarter is shaping up to be the biggest-ever for both total revenue and iPhone sales, citing strong demand for the iPhone 17 family. The company expects total revenue to increase 10%-12% for the year-end 2025 quarter, CFO Kevan Parekh said.

Cook also touted the recent 22 Emmy wins for Apple TV (which has been rebranded to drop the “+” sign), with Seth Rogen and Evan Goldberg’s comedy “The Studio” taking home 13 trophies, “Severance” winning eight and “Slow Horses” garnering one.

In addition, he called out Apple’s five-year deal for Formula 1 broadcast rights in the U.S., which starts in 2026. The deal, announced earlier this month, is worth about $750 million over the five-year term, Variety reported. “F1 is one of the most exciting and fastest-growing sports in the world,” said Cook.

Regarding Trump’s tariffs, Cook said that Apple hasn’t raised prices on its products to account for those increased costs. The company incurred $1.1 billion in additional costs related to tariffs in the September quarter; it anticipates $1.4 billion in extra tariff costs in the year-end 2025 quarter, according to Parekh.

As he has said in the past, Cook said Apple would “pursue M&A” deals if those could boost the company’s business.