However, Apple came up short versus revenue expectations in core product categories including the company’s iPhone business and services.
Apple shares fell about 1% in extended trading.
Here is how Apple did versus Refinitiv consensus estimates:
EPS $1.29 vs. $1.27 est.
Revenue. $90.15 billion vs. $88.90 billion estimated, up 8.1% year-over-year
iPhone revenue: $42.63 billion vs. $43.21 billion estimated, up 9.67% year-over-year
Mac revenue: $11.51 billion vs. $9.36 billion estimated, up 25.39% year-over-year
iPad revenue: $7.17 billion vs. $7.94 billion estimated, down 13.06% year-over-year
Other Products revenue: $9.65 billion vs. $9.17 billion estimated, up 9.85% year-over-year
Services revenue: $19.19 billion vs. $20.10 billion estimated, up 4.98% year-over-year
Gross margin: 42.3% vs. 42.1% estimated
Apple did not provide official guidance for its first fiscal quarter, which ends in December and contains Apple’s biggest sales season of the year. It hasn’t provided guidance since 2020, citing uncertainty.
Apple increased revenue by 8% during the quarter, and Apple CEO Tim Cook told CNBC that it would’ve grown “double-digits” if not for the strong dollar. Total sales in Apple’s fiscal 2022 were up 8% to $394.3 billion.
“The foreign exchange headwinds were over 600 basis points for the quarter,” Cook told CNBC’s Steve Kovach. “So it was significant. We would have grown in double digits without the foreign exchange headwinds.”
Cook told CNBC that Apple had slowed the pace of its hiring. Other tech companies are looking to make cuts ahead of a possible recession and as interest rates rise.
“We are hiring deliberately. And so we we’ve slowed the pace of hiring,” Cook said.
Although Apple’s iPhone business increased sales by over 9% on an annual basis, it came up short versus analyst expectations. Apple’s September quarter had 8 days of iPhone 14 sales, and analysts are closely looking for details about if Apple customers are trading up for more expensive models or if the new devices are poised to sustain higher sales through Apple’s fiscal 2023.
Cook indicated that Apple’s performance in phone sales was strong despite signs that other smartphone companies are struggling with a recent decrease in demand and said the company grew “switchers,” or people who bought an Apple phone after having an Android device. He added that the company’s high-end phones, the iPhone 14 Pro, were supply constrained.
“We clearly countered the industry trends on the on the phone if you look at third party estimates of what the smartphone industry did,” Cook said.
Apple’s services business also missed estimates.
Apple’s services business reported just under 5% growth during the quarter, a significant slowdown for the investor-favorite and profitable business line versus last quarter, which was 12%.
For the fiscal year, Apple services grew just over 14% to $78.13 billion, a slower rate of growth than 2021’s 16% annual increase, and much slower than 2020’s 27% services growth.
The business includes several different lines, including Apple’s online services like Apple Music and Apple TV+, revenue from the App Store, hardware warranties, and search deals with companies like Google.
Apple recently increased prices for Apple Music and Apple TV+, but the increases started during the December quarter.
Cook said the price increases were “disconnected” from Apple’s services performance.
“Well, they’re in the if you look at the price increases as an example, Music, the licensing cost has increased,” Cook said.
He added that Apple TV+ has more shows now, so Apple feels that the product is more valuable.
Investors generally like Apple’s move into services because the products are more profitable than Apple’s hardware and often bring in recurring revenue.
There were a few bright spots in Apple’s report. Mac sales were up over 25% to $11.51 billion, even as data points from parts suppliers, chipmakers, and competing PC firms were pointing during the quarter to a significant slowdown in laptop and desktop sales after two boom years during the pandemic.
Apple’s Other Products category, which includes Apple Watch and AirPods, also saw an annual increase and beat Wall Street expectations. Some analysts believed that Apple’s wearables were most likely to be hurt if recessionary fears slowed discretionary spending. That business increased nearly 10% year-over-year to $9.65 billion.
Apple’s iPad, which had been hampered by supply issues, decreased nearly 10% year-over-year and is Apple’s smallest individual line of business. The company recently released new models in October, which could boost sales just after the September quarter finished. Cook said that it was a difficult comparison because last year, Apple released new iPads in September.
A Netflix logo is on display at the Lucca Comics & Games 2025 event, one of Europe’s largest pop culture conventions, as stars and creators of “Stranger Things” series launch Season 5, in Lucca, Italy, October 31, 2025.
Claudia Greco | Reuters
Users on social media posted that they were experiencing issues with Netflix’s service on Wednesday, the night of the widely anticipated “Stranger Things” fifth-season premiere.
DownDetector.com on Wednesday said “User reports indicate problems at Netflix.”
Users began reporting issues with Netflix around 7:40 p.m. Eastern, according to DownDetector.com. Netflix had said the latest season of “Stranger Things” would go live Wednesday at 8 p.m. Eastern.
Netflix said it would release the first four episodes of the “Stranger Things” fifth season on Wednesday. The streaming service has said it will release another three episodes on Dec. 25 and the final episode of the show on Dec. 31.
The company did not respond to a request for comment.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Nov. 26, 2025.
Brendan McDermid | Reuters
Thanksgiving in the U.S. takes place on Thursday stateside, but the feasting might have begun a day early for investors. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all recorded a fourth straight day of gains.
Shares of Oracle, which have been hobbling along in November after wiping out its one-day spike in September, advanced roughly 4% after Deutsche Bank said that its recent price pullback “presents an attractive entry point for investors when looking at Oracle’s business in totality.” Other technology and AI-related stocks, such as Nvidia and Microsoft, rose in sympathy.
“Thanksgiving week is generally a strong week in the markets. Everyone’s feeling good,” said Eric Diton, president and managing director at The Wealth Alliance.
It’s what happens after Thanksgiving that might cause some pause.
The futures market is now pricing in a roughly 85% chance the U.S. Federal Reserve will cut interest rates by a quarter percentage point in December. When expectations are too high — and not met — disappointment will be all the more painful.
“If the Fed disappoints, you could have a sell-off,” Diton said — but added, “I don’t think they will.”
And if White House National Economic Council Director Kevin Hassett does assume the role of Fed chair when Jerome Powell vacates his seat, rates could trend even lower in the future, wrote Bank of America economist Aditya Bhave.
Investors indeed have much to be thankful for in 2025 — and possibly the next year as well.
What you need to know today
Fourth straight day of gains for U.S. stocks. Major indexes closed higher on Wednesday, lifted by technology firms such as Oracle and Nvidia. Europe’s Stoxx 600 added 1.09%. U.K. banks climbed following the release of the country’s budget.
Apple’s smartphone shipments to overtake Samsung. The company will ship around 243 million iPhones this year, higher than the 235 million smartphones from Samsung, Counterpoint Research wrote. It’d be the first time in 14 years Apple will outstrip its rival.
UK unveils its Autumn Budget. Some measures Finance Minister Rachel Reeves announced on Wednesday include tax breaks for startup employees and investors, and frozen income tax thresholds — which have been described as “stealth tax” for workers.
AI can replace 11.7% of U.S. workforce, MIT says. That’s equivalent to $1.2 trillion in wages across finance, health care and professional services. The study, which was released Wednesday by the university, created a simulation of 151 million U.S. workers.
[PRO] The S&P 500 to hit 8,000 next year? A JPMorgan strategist thinks the broad-based index will end 2026 at 7,500, roughly 10% higher than Wednesday’s close. But if certain events happen, he thinks the S&P 500 could touch even higher levels.
And finally…
Jiang Zheyuan, chairman of Noetix Robotics, with a robotic android at the company’s offices in Beijing, China, on Friday, June 27, 2025.
Shares of Apple and Broadcom on Wednesday both traded above their record-high closes. New research shows investors exactly why there should be more upside ahead for the two Club holdings. No. 1 smartphone: Apple stock rose Wednesday after Counterpoint Research said the company was on track to dethrone Samsung as the world’s top smartphone maker in 2025 — a feat not seen in more than a decade. The tech behemoth is expected to ship 243 million iPhone units in 2025 compared to Samsung’s 235 million. Counterpoint analysts credited the successful debut of Apple’s newest iPhone 17 series for the share gains as device shipments rose 10% year over year in 2025. While shipments – the number of devices vendors send to retailers – are different than final sales, the figures are still important. They can provide valuable insights into smartphone demand and sales expectations. For 2025, Apple is expected to secure a 19.4% share of the global smartphone market, while Samsung’s is seen coming in at 18.7%. AAPL YTD mountain Apple YTD We’re not surprised to hear of Apple’s market dominance. After all, the iPhone 17 series has shown promising signs time and time again since its September launch. Jim Cramer has described Apple’s latest flagship device as a huge bargain when considering trade-in values for previous models and carrier subsidies. “We’ve been saying the iPhone 17 is unbelievable,” Jim previously said. He added, “As long as Apple makes the best products, people will buy them.” The impressive iPhone 17 debut, in part, is why the stock keeps hitting all-time highs and even joined the $4 trillion market cap club last month. Given the consistent signs of success for the iPhone 17, we could see the upward trend in Apple shares continuing through the end of 2025. That said, the Club is still awaiting more clarity on Apple’s AI strategy, which so far has been lackluster. Buzzy new features — like delivering on a long-delayed conversational Siri — could help further drive an upgrade cycle for the iPhone. Still, we see Apple as uniquely positioned to benefit from AI because its huge installed customer base makes the company a great AI partner for those who want to expand services to a broader audience. That means Apple can make money from AI without spending enormous amounts. The Club maintains its long-held “own, don’t trade” thesis on shares. Wall Street praise: Broadcom shares hit new all-time intraday highs Wednesday after Goldman Sachs raised its price target to $435 from $380. The analysts, who kept their buy rating, expect Broadcom’s upcoming quarter to be solid, with “strong momentum driving upside to AI revenue” in 2026. Broadcom is set to report its fiscal 2025 fourth quarter on Dec. 11. “We expect sustained AI strength in 4Q, with 1Q guidance above the Street given robust spending at key customers — and we expect updated FY26 AI revenue guidance above 100% YoY,” the analysts wrote in a Tuesday note. The reference to “key customers” is likely a nod to more AI spending from hyperscalers, which means an increase in Broadcom sales. Goldman forecasts that Broadcom’s AI revenue will see a 128% year-over-year gain in fiscal year 2026. Broadcom shares have surged as Wall Street positions the chipmaker as a play on Alphabet’s growing AI dominance, thanks to Broadcom’s role in co-designing Google’s custom Tensor Processing Units (TPUs) that power the new standout Gemini 3 artificial intelligence model. AVGO YTD mountain Broadcom YTD We agree with Goldman: Broadcom shares have more upside ahead even as they trade at records. Big tech companies raising their capital expenditures for AI infrastructure means more sales for Broadcom’s networking and custom chip businesses. That’s a key reason why the Club started a position in the stock. Additionally, this week’s report that Club name Meta Platforms is considering Google TPUs for its data centers in 2027 are a positive for Broadcom. Alphabet’s deeper AI commitment can drive sales for the custom chips Broadcom helps design. The Club has a hold-equivalent 2 rating , and a price target of $415 on shares. (Jim Cramer’s Charitable Trust is long AAPL, AVGO, META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
