AAPL Stock Slips Despite Apple Record Earnings, $100 Billion Buyback
The stock continued to decline after hours as investors considered cautious market sentiment, despite Apple's most recent earnings report...
Quick overview
- Apple reported a record quarterly revenue of $95.4 billion and a net income of $24.8 billion for Q1 2025.
- Despite strong earnings and a $100 billion share repurchase plan, Apple's stock fell approximately 3% in after-hours trading.
- The company is diversifying its supply chain by shifting production out of China to mitigate tariff risks.
- While Apple saw growth in several product segments, there were minor declines in wearables and services revenue.
The stock continued to decline after hours as investors considered cautious market sentiment, despite Apple’s most recent earnings report for Q1 2025 demonstrating solid financial success and an aggressive new repurchase strategy.
Earnings Impress, But Stock Reaction Disappoints
Apple reported quarterly revenue of $95.4 billion for the first calendar quarter of 2025, alongside a net income of $24.8 billion, translating to earnings of $1.65 per diluted share. These results marked a new March-quarter record for earnings per share and included all-time high revenue from the company’s services division. Despite this, Apple’s stock fell roughly 3% in after-hours trading, shedding about $6 to hover around $207.37 following a regular session close of $213.32.
The decline came in contrast to what should have been a celebratory moment: Apple unveiled a massive $100 billion share repurchase authorization, reaffirming its confidence in long-term growth and returning value to shareholders. Still, investor enthusiasm was muted—suggesting the market had perhaps already priced in strong results, or remained cautious amid broader macroeconomic headwinds.
Resilience Amid Market Pressures and Tariff Risks
Apple’s stock has endured a volatile stretch. After peaking near $260 in December 2024, shares tumbled nearly 35% to hit a low of $169 in early April amid global equity jitters and mounting geopolitical risk. However, recent weeks have seen a notable rebound, supported by improved sentiment around tech earnings and Apple’s strategic moves to shield its operations from trade tensions.
AAPL Share Price Chart Daily – Trading below the 200 SMA
In particular, the company has been shifting portions of its production out of China, leveraging Indian manufacturing facilities to assemble and export iPhones directly to the U.S. This effort is part of a broader push to diversify its supply chain in response to ongoing tariff risks. Even with the recent European Union fine weighing on sentiment, Apple’s ability to pivot and maintain high-margin service revenue has helped maintain its valuation.
Apple Q2 2025 Earnings: Solid Beat Across Most Segments, But Cautious Tones in Wearables and Services
Total Revenue:
- $95.36 billion vs. $94.59 billion expected → Beat
- Up 5.1% from $90.75 billion in Q2 2024
Earnings Per Share (EPS):
- $1.65 vs. $1.63 expected → Beat
- Up 8.6% from $1.52 in Q2 2024
Performance by Product Segment
iPhone Revenue:
- $46.84 billion vs. $46.17 billion expected → Beat
- +2.3% YoY, driven by demand for iPhone 16e despite broader economic concerns
Mac Revenue:
- $7.95 billion vs. $7.92 billion expected → Beat
- +10.4% YoY, helped by M4 MacBook Air refresh
iPad Revenue:
- $6.40 billion vs. $6.07 billion expected → Beat
- +8.5% YoY, supported by new iPad Air and Pro models
Wearables, Home & Accessories:
- $7.52 billion vs. $7.85 billion expected → Miss
- −1.8% YoY decline, due to weak global accessory demand
Services Revenue:
- $26.65 billion vs. $26.69 billion expected → Slight Miss
- +17.9% YoY, with strength in App Store, iCloud, and subscriptions
Geographic Highlights
Greater China Revenue:
- $16.0 billion vs. $15.9 billion expected → Beat
- Showed modest growth despite rising local competition
Capital Return Update
- Dividend increased by 4% to $0.26 per share
- Announced new $100 billion share repurchase authorization
Apple delivered a solid Q2 performance with top- and bottom-line beats and notable growth in Mac, iPad, and Services segments. While minor softness emerged in wearables and services missed marginally, strong product momentum and an aggressive buyback plan boosted investor confidence.
Outlook: Eyes on Market Open After After-Hours Dip
Despite beating expectations and announcing a historically large buyback program, Apple’s stock is set to open lower on the next trading day, with the after-hours dip creating a likely gap down at the open. Investors will be closely watching how the market digests the mix of solid earnings and cautious global signals.
Apple delivered robust Q1 results and committed to a record-breaking stock buyback, but broader concerns around valuation and macro uncertainty tempered investor reaction. The next trading session will reveal whether the selloff is short-lived or marks the start of a more cautious phase for AAPL.
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