Apple reports solid fiscal Q2 numbers but the stock still plunges due to tariff fears
It's that time again folks! Apple released its fiscal second-quarter earnings this afternoon after the market closed and investors and traders alike are reacting to the report by selling the stock. In after-hours trading. Apple's shares have coughed up $8.48 or 4% to $204.84 a share after tacking on 82 cents or .4% during regular trading hours. It appears to be the typical buy on the rumor, sell on the news situation as some of the report contains good news.
For example, revenue generated by Apple during its fiscal second quarter came to $95.4 billion, up 5% year-over-year. Diluted earnings per share (which imagines the conversion into equity of all convertible debt) rose 8% to $1.65 per share. All three of those numbers topped Wall Street expectations although this financial hat trick did not help lift Apple's stock.
Apple reports a gain in fiscal Q2 iPhone revenue year-over-year
Some of the usual numbers that we report each quarter also beat the forecasts made by Wall Street pencil pushers who like to believe that they know exactly what is happening inside and outside the company. For example, at $46.84 billion, iPhone revenue not only rose 1.9% on an annualized basis, it also topped the Wall Street consensus forecast of $45.84 billion by one billion dollars. Look, I know you might be desensitized into thinking that one billion dollars is nothing, but even for Apple, beating iPhone revenue expectations by $1 billion is not too shabby a feat.
The iPhone 16 Pro on the left and the iPhone 16 on the right. | Image credit-PhoneArena
Apple released a pair of new iPads during the quarter although the two new tablets only were on store shelves for about two weeks before the quarter ended. Still, the release of the new seventh-generation M3 iPad Air and the 11th-generation iPad helped Apple take in a higher-than-expected $6.4 billion in tablet revenue during fiscal Q2. Wall Street was looking for $6.2 billion and the actual resuls showed that the tech giant had 15.1% more iPad revenue year-over-year.
At $26.65 billion, Services revenue was just a wee bit short of the $26.70 billion that analysts expected Apple to announce. It still was 11.6% higher than Services revenue reported for fiscal Q2 last year. The Services business segment is Apple's second-largest unit after the iPhone. The business segment that includes the Apple Watch and AirPods failed to meet expectations as Wearables, Home, and Accessories revenue, at $7.52 billion, fell short of the $7.95 billion that Wall Street was looking for. It also fell short of last year's Wearables, Home, and Accessories revenue of $7.91 billion.
Apple reported higher revenue in four out of the five business regions that it uses to track sales (Americas, Europe, Japan, and the rest of Asia Pacific). The one area where revenue declined was Greater China as sales decreased during the quarter to $16 billion from $16.37 billion.
Apple CEO Tim Cook said that the tariffs had a limited effect on Apple's fiscal Q2 earnings report because it had optimized its supply chain. During a conference call after the report was released, Cook said it is difficult to predict what will happen to tariffs after June. He also said, "If you look at the U.S., over half of the US sales of iPhone come from India. If you look at the other products, Mac and iPad and AirPods and the Watch, almost all of the country of origin is Vietnam." Cook also noted that Apple is buying 19 billion chips this year from the US.
"We will manage the company the way we always have with thoughtful and deliberate decisions, with a focus on investing for the long term and with dedication to innovation and the possibilities it creates. As we look ahead, we remain confident."
-Tim Cook, CEO, Apple
Apple's board authorized the repurchase of $100 billion in Apple shares this quarter. That is down from the $110 billion in stock repurchases that Apple authorized during the same quarter last year. The company also announced a 26 cents a share dividend which is 4% higher. The dividend will be paid on May 15, 2025 to shareholders of record as of the close of business on May 12, 2025.
![T-Mobile is phasing out plans with included taxes and fees starting tomorrow [UPDATED]](https://m-cdn.phonearena.com/images/article/169988-wide-two_500/T-Mobile-is-phasing-out-plans-with-included-taxes-and-fees-starting-tomorrow-UPDATED.jpg)
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed: