Apple Inc. financial results for Q1 2025 reveal a mixed performance that aligns with market expectations while highlighting some areas of concern. The report indicates a 4% year-over-year revenue growth, driven primarily by a remarkable 14% increase in services revenue. However, the decline in Apple iPhone sales, which dipped by 0.8% year-over-year, signals a challenge, especially given the significant weakness in the China market. Analysts are closely watching the Apple Inc. target price, currently set at USD 235, as the stock recommendation has shifted to NEUTRAL following this performance. While the company shows resilience in its services segment, the overall outlook suggests a need for strategic adjustments to boost iPhone sales and regain market momentum.

      

Overview of Apple Inc. Financial Results for Q1 2025

Apple Inc. financial results for the first quarter of 2025 indicate a steady performance that aligns with market expectations. The company reported a revenue growth of 4% year-over-year, which reflects a strong push in its services sector, where revenue rose by 14%. This growth in services is crucial as it helps to offset the slight decline in iPhone sales, which dropped by 0.8% year-over-year, particularly impacted by challenges in the Chinese market.

      

According to the Apple Inc. Q1 2025 report, the revenue and profit after tax for the quarter represented 29% and 32% of the company’s fiscal year 2025 estimates, respectively. This performance showcases the resilience of Apple’s diversified business model, where growth in services revenue is increasingly becoming a cornerstone of its financial health. Despite the decline in iPhone sales, this shift towards services highlights Apple’s strategic long-term vision.