Apple’s services business reported revenue of $24.97 billion in the company’s fourth quarter, reaching a new all-time high for the company.
The services revenue, which includes the App Store, Apple Pay and Apple Card; subscription services such as Apple TV+, Apple Music and iCloud as well as advertising, was up from $22.3 billion a year ago, but below Wall Street expectations.
Overall, Apple beat Wall Street expectations with quarterly revenue of $94.9 billion, up 6 percent year over year, and adjusted earnings per share of $1.64, which excludes the one-time charge recognized during the fourth quarter of 2024 related to the impact of the reversal of the European General Court’s State Aid decision, which requires the tech company to pay Ireland 13 billion euros in back taxes. Wall Street had expected earnings per share of $1.60 and revenue of $94.58 billion.
“Today Apple is reporting a new September quarter revenue record of $94.9 billion, up 6 percent from a year ago,” said Tim Cook, Apple’s CEO. “During the quarter, we were excited to announce our best products yet, with the all-new iPhone 16 lineup, Apple Watch Series 10, AirPods 4, and remarkable features for hearing health and sleep apnea detection. And this week, we released our first set of features for Apple Intelligence, which sets a new standard for privacy in AI and supercharges our lineup heading into the holiday season.”
“Our record business performance during the September quarter drove nearly $27 billion in operating cash flow, allowing us to return over $29 billion to our shareholders,” said Luca Maestri, Apple’s CFO. “We are very pleased that our active installed base of devices reached a new all-time high across all products and all geographic segments, thanks to our high levels of customer satisfaction and loyalty.”
More to come.
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