Summary
- Apple Inc. delivered strong Q4 ’25 results, with EPS beating estimates and record annual revenue of $416 billion, supporting my Strong Buy rating.
- Services segment grew 15%, driving high-margin, recurring revenue and offsetting hardware cyclicality, while gross and operating margins remain industry-leading.
- Key watchpoints for Q1 ’26 include a rebound in China, resolving iPhone 17 supply constraints, and sustaining gross margin expansion despite tariff headwinds.
- AAPL stock trades near sector-average valuation but offers superior profitability, brand strength, and capital returns, making it undervalued given its robust financial profile.
ozgurdonmaz/iStock Unreleased via Getty Image…
Summary
- Apple Inc. delivered strong Q4 ’25 results, with EPS beating estimates and record annual revenue of $416 billion, supporting my Strong Buy rating.
- Services segment grew 15%, driving high-margin, recurring revenue and offsetting hardware cyclicality, while gross and operating margins remain industry-leading.
- Key watchpoints for Q1 ’26 include a rebound in China, resolving iPhone 17 supply constraints, and sustaining gross margin expansion despite tariff headwinds.
- AAPL stock trades near sector-average valuation but offers superior profitability, brand strength, and capital returns, making it undervalued given its robust financial profile.
ozgurdonmaz/iStock Unreleased via Getty Images
Apple Inc. (NASDAQ:AAPL) released Q4 ‘25 earnings on October 30, 2025, and the numbers looked solid. Diluted EPS came in at $1.85, outpacing estimates by ~4.5%. Meanwhile, revenue hit ~$102.47 billion, meeting estimates. These figures wrapped up a record fiscal year for the
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