Apple to report earnings for first quarter of 2025

Apple will report earnings for the first quarter of fiscal year 2025 after markets close on Thursday. Analysts estimate that its quarterly revenue will be $124.39bn, year-over-year growth of roughly 4%, and that earnings per share will come in at $2.35.

Investors are paying close attention to the company’s forays into artificial intelligence, which have progressed at a slower pace than its competitors and received mixed reviews, particularly the debut of Apple Intelligence at the end of October. The AI-powered product, the company’s first using generative AI, was highly anticipated, but the tech has been riddled by inaccuracies and hallucinations.

The company’s earnings come during a bleak week for US tech stocks. After the Chinese AI company DeepSeek saw its app hit the top spot in Apple’s App Store on Monday, stock prices tumbled for many tech companies – wiping more than $1tn from the leading US tech index. The chipmaker Nvidia broke record lows, seeing the biggest ever fall in US stock market history, losing nearly $600bn off its market value in a single day, though it recovered some value the following day. More broadly, the tech sector regained its footing after Microsoft and Meta beat Wall Street analysts’ expectations with their earnings reports on Wednesday.

DeepSeek created its AI assistant for a fraction of the cost that US AI companies are spending to build their chatbots. This comes even as China is under strict chip export controls.

Apple appeared to be insulated from the crash, with its stock even notching up earlier this week. Analysts say that because Apple is focused on integrating its AI as a product into devices, it can keep costs lower than if it were building expensive cutting-edge models.

Despite that, Apple has experienced a rough start to 2025 with its stock prices falling roughly 8%. Investors have been concerned about decreasing phone sales in China, the world’s biggest smartphone market, as domestic rivals like Huawei have grown.

Apple Intelligence has also come with glitches and a knack for inaccurately summarizing facts in push notifications. The BBC filed a complaint with Apple in December saying the tech company’s AI feature was generating fake news attributed to the broadcaster.

In one notification summary, Apple’s AI wrote: “Brazilian tennis player, Rafael Nadal, comes out as gay.” Nadal is from Spain and is married to María Francisca Perelló. In another, Apple falsely said that Luigi Mangione, who is accused of killing the UnitedHealthcare CEO, had shot himself, which is also untrue.

Apple suspended the news summary feature earlier this month. In its latest iOS update, which rolled out this week, Apple started putting all other AI notifications in italics to indicate they were created by artificial intelligence.