Apple Posts Highest Revenue Growth Since 2021 at $94B

Apple Inc. reported its strongest quarterly revenue growth since December 2021, with Q3 FY2025 revenue rising 10 percent YoY to $94 billion, beating market expectations by $4.5 billion.

The surge was driven by iPhone sales, which jumped 13 percent to $44.6 billion, and Mac revenue, which climbed 15 percent to $8.1 billion. Services revenue rose 13 percent to $27.4 billion, but iPad and wearables declined 8 percent each. Net income rose to $24.4 billion, or $1.6 per share, exceeding analyst estimates. China sales, including Hong Kong and Taiwan, grew 4 percent to $15.4 billion, reversing a previous slide in one of Apple’s most critical markets.

Key Highlights

$94B Q3 revenue (+10 percent YoY), led by iPhone & Mac; net income $24.4B
Tariff-driven sales boosted growth artificially; costs could rise to $1.1B
AI push intensifies with 7 acquisitions; Siri upgrade delayed until 2026

However, the numbers reveal a more complex picture: CEO Tim Cook acknowledged that 1 percentage point of the 10 percent growth came from tariff-induced early purchases, as customers rushed to buy ahead of potential price hikes. Apple incurred $800 million in tariffs this quarter and projects up to $1.1 billion in Q4, underscoring how global trade policies are inflating short-term revenue while increasing costs.

Apple is accelerating its AI strategy, having acquired seven companies in 2025 alone. Yet, its revamped AI-powered Siri won’t launch until 2026, exposing a gap between ambition and execution. Cook confirmed Apple is now open to acquisitions to fast-track its AI roadmap.

Also Read: Apple Q3 2025 Earnings: Revenue Expected to Rise 4.2%

With $133 billion in cash, Apple has the resources to catch up, but the shift away from its traditionally measured innovation strategy could mark a turning point in how it competes in the fast-evolving AI space.