Apple Inc. (AAPL) is set to report its fiscal third-quarter earnings on Thursday after the closing bell, offering investors fresh insight into the performance and outlook of one of the world’s most valuable technology companies.
The June quarter, typically Apple’s slowest in terms of sales ahead of its major product launches in September, is still expected to show modest growth this year, despite mounting headwinds including tariffs, manufacturing uncertainty, and investor concerns about the company’s artificial intelligence (AI) strategy.
Modest growth expected, but tariff concerns loom large
Wall Street expects Apple to post earnings per share (EPS) of $1.43 on revenue of $89.54 billion, according to consensus estimates compiled by LSEG.
That would represent a 4% year-over-year increase in sales, signaling resilient performance despite broader challenges in the global tech sector.
Analysts also expect Apple to forecast 3% revenue growth for the September quarter, typically its most critical sales period due to new product launches and the holiday season.
However, investors will be closely watching for updates on tariffs, a key source of uncertainty for Apple.
In May, the company disclosed that it would incur roughly $900 million in additional tariff costs in the June quarter due to US import duties on Chinese-made products.
At the time, Apple said it could not project the impact beyond June, leaving investors eager for clarification in Thursday’s report.
Adding to the tension, Apple announced plans earlier this year to shift some manufacturing of US-bound iPhones to India in an effort to bypass Chinese tariffs.
The move sparked criticism from former President Donald Trump, who expressed disapproval over Apple’s production strategy.
India itself could face a 25% tariff as soon as Friday, raising questions about whether Apple’s India pivot will deliver the intended cost benefits.
AI strategy and developer conference reception
Apple’s annual Worldwide Developers Conference (WWDC), held in June, served as a platform for showcasing the latest updates to its software ecosystem.
However, the event did not feature major announcements regarding artificial intelligence—an area where rivals like Microsoft, Google, and Meta have made significant strides.
This lack of AI-related news disappointed some market analysts and cast doubt over Apple’s competitive positioning in a sector widely expected to drive the next phase of tech growth.
Still, some investors remain optimistic, arguing that any material impact from Apple’s AI development, or lack thereof, won’t be visible in earnings for several years.
Thursday’s earnings call may offer additional commentary from CEO Tim Cook on the company’s roadmap in this increasingly crucial domain.
Bright spot in Apple’s media business
Amid macroeconomic pressures and strategic uncertainties, Apple does have one bright spot to highlight: its growing media business. “F1,” a film produced by Apple, recently crossed the $500 million mark at the global box office, becoming the company’s first true summer blockbuster.
The milestone may receive mention during the earnings call as evidence of Apple’s expanding footprint beyond hardware and into content production.
With Apple shares down 14% year-to-date in 2025, Thursday’s earnings report will be critical in shaping investor sentiment heading into the final stretch of the year.
Updates on tariffs, manufacturing strategy, and AI development will likely weigh heavily on how the stock reacts post-earnings.
The post Apple to report earnings after bell, what to expect? appeared first on Invezz
