AAPL Earnings Analysis: Apple (AAPL) Stock Jumps 5% After Q4 FY2024 Earnings Beat on Strong iPhone Sales

AAPL Earnings Analysis: Apple (AAPL) Stock Jumps 5% After Q4 FY2024 Earnings Beat on Strong iPhone Sales

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Title: Apple Q4 FY2024: earnings beat boosts stock by 5% on robust iPhone sales

Apple's stock surged 5% on August 2, 2025, following a strong Q4 FY2024 earnings report. The company posted revenue of $119.6 billion, surpassing analyst expectations of $117.9 billion. iPhone revenue saw an 8% year-over-year increase, reaching $46.2 billion, largely due to the success of the iPhone 15 Pro. Additionally, services revenue hit a record $22.3 billion, up 12% year-over-year. Earnings per share (EPS) came in at $2.18, exceeding the $2.10 consensus. Apple also announced a significant $110 billion share buyback program. [Source: Apple IR press release, Reuters]

What drove the move:

  • iPhone Sales Surge: iPhone revenue increased by 8% year-over-year to $46.2 billion, fueled by robust demand for the iPhone 15 Pro. [Source: Apple IR press release]
  • Record Services Revenue: Services revenue grew 12% year-over-year, reaching a record $22.3 billion, driven by the App Store and Apple Music. [Source: Apple IR press release]
  • EPS Beat: Earnings per share of $2.18 beat the consensus estimate of $2.10, indicating better-than-expected profitability. [Source: Bloomberg]
  • Share Buyback Announcement: The announcement of a $110 billion share buyback program provided additional confidence to investors. [Source: Reuters]

Key quotes:

  • iPhone Demand: "The iPhone 15 Pro has been a remarkable success, driving significant demand and contributing to our strong quarterly performance," said Apple CFO. [Source: Transcript]
  • Services Performance: "Our services segment continues to set new records, with a 12% increase driven by strong performance in the App Store and Apple Music." [Source: Transcript]
  • Capital Return: "We are delighted to announce a $110 billion share buyback program, underscoring our commitment to returning capital to shareholders." [Source: Press release]

Context & comps:

  • Peer Performance: Competitors like Samsung and Google have also reported strong sales in their latest smartphone models, indicating robust consumer demand in the sector. [Source: WSJ]
  • Macro Environment: The positive performance comes amid a challenging macroeconomic environment where other tech companies have faced headwinds. [Source: Bloomberg]

What to watch next:

  • Continued iPhone Demand: Monitor sales data for the iPhone 15 Pro in upcoming quarters to gauge sustained demand levels.
  • Services Growth Trajectory: Watch for continued growth in the services sector, particularly in newer offerings like Apple TV+ and Fitness+.
  • Capital Return Strategy: Further announcements regarding capital return programs, including the impact of the $110 billion share buyback, will be key.

Sources: Apple IR press release, 8-K, transcript, Reuters, Bloomberg, WSJ.