Apple Delivers Mixed Earnings – What Investors Need to Know

Apple AAPL delivered a mixed earnings report that beat expectations on revenue but raised fresh concerns about future growth, especially in China.

Apple Earnings Recap – Q2 2025

Apple AAPL delivered a mixed earnings report that beat expectations on revenue but raised fresh concerns about future growth, especially in China.

🔍 Key Highlights:

• Total Revenue: Up +5.1% YoY, beating analyst expectations.
• Product Revenue:
• iPhone: +1.9%
• Mac: +6.7%
• iPad: +15%
• Wearables: -4.9% (the weak spot)
• Services Revenue: +12% YoY — a record high, but missed estimates and posted the slowest growth in 2 years.
• China Sales: Down -2.3%, marking seven straight quarters of decline — a major red flag for future international growth.
• Gross Margin: +6.1% YoY
• Operating Expenses: Up +6.3%
• Cash & Equivalents: Down -14% YoY

📉 Market Reaction So Far:

Despite solid overall numbers, the stock fell 3% after hours, weighed down by:

• Weakness in China
• Concerns over tariffs and regulatory risks
• Slower guidance going forward

💰 Shareholder Moves:

• $100 billion stock buyback authorized
• Quarterly dividend increased 4% to $0.26/share

Final Take and GAR Capital's Rating of Apple:

📌 AAPL Rating: HOLD

🎯 Short-Term Price Target: $180

• This level reflects fair value, aligning with the 200-week moving average.

"At 33x earnings, Apple is too expensive in a high-rate environment. Without strong growth to justify a premium multiple, I believe the stock should trade closer to a 25x forward earnings valuation — especially while interest rates remain elevated. We need price to adjust, not expectations to stretch. Happy Trading!"

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