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Apple Inc. reported robust financial results for its fiscal second quarter of 2025, ending March 29, with revenue reaching $95.4 billion—a 5% increase year-over-year. This growth was primarily driven by strong iPhone sales, which totaled $46.8 billion, surpassing analyst expectations of $45.84 billion.
The company achieved a net profit of $24.8 billion, or $1.65 per diluted share, marking an 8% increase from the previous year and setting a new March quarter record. Apple's gross margin improved to 47.1%, up from 46.6% in the same quarter last year.
Apple's Services division also reached a new all-time high in revenue, contributing significantly to the overall financial performance. However, the company faced challenges in the Greater China region, where sales declined by 2% year-over-year to $16 billion, falling short of the anticipated $16.83 billion.
In response to ongoing U.S.-China trade tensions and associated tariffs, which could cost the company up to $900 million in the June quarter, Apple has accelerated its supply chain diversification. CEO Tim Cook announced that most iPhones sold in the U.S. will soon be manufactured in India, reducing reliance on Chinese production.
Despite the strong quarterly performance, Apple's stock experienced a nearly 4% decline, closing just over $205. Analysts attribute this to investor concerns over potential tariff impacts and uncertainties surrounding the company's artificial intelligence initiatives.
To bolster shareholder confidence, Apple's board authorized an additional $100 billion for share repurchases and increased its quarterly dividend to $0.26 per share, up from $0.25.