What Analysts Expect from Apple's Q1 2025 Earnings Report

Apple Earnings Outlook: Revenue and EPS Expected to Rise

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Jan 24, 2025
Summary
  • Apple's Q1 2025 earnings are set to rise modestly, with revenue growth of 3% and an expected EPS increase
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The release of Apple Inc. (AAPL, Financial) Fiscal First Quarter 2025 results is anticipated to draw market players' attention, with the global market conditions taking a toll on the sector. Apple is expected to post revenue of $124 billion this quarter, a nice 3% year-over-year increase. EPS is expected to rise from $1.47 in the previous quarter to $2.35.

To a large extent, Apple's stock relies on the emergent performance of its core iPhone lineup, which brings in a large chunk of the company's revenue. Red flags are going up for analysts regarding iPhone sales volumes as signs of plateauing consumer demand emerge. Under its services segment, which includes the App Store and subscription offers, the company, too, is focusing on slower growth compared to its previous quarters on account of regulatory pressures.

Investors will look to hear commentary on the Vision Pro headset and its broader product roadmap to get a better-educated sense of whether Apple's innovation can sustain future growth. The report also is expected to feature heavily on share buybacks and capital returns to investors.

Apple Shares are down about 14% from their 2024 high, and the upcoming earnings call could set the stage for how Apple's stock moves in 2025. The key risks are revenue growth, competition, and macro externalities.

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