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Apple Heads Into Earnings on iPhone 17 Strength as Services Set to Top $100 Billion

Wall Street wants proof the rally rests on sustainable iPhone upgrades plus Services momentum.

FILE - Alphabet CEO Sundar Pichai speak at a Google I/O event in Mountain View, Calif., Tuesday, May 20, 2025. (AP Photo/Jeff Chiu, File)
FILE - The logo of Microsoft is seen outside its French headquarters in Issy-les-Moulineaux, outside Paris on May 13, 2024. (AP Photo/Thibault Camus, File)
iPhones 17 Pro are displayed during Apple's event at the Steve Jobs Theater in Cupertino, California, U.S. September 9, 2025. REUTERS/Manuel Orbegozo
Figurines with computers and smartphones are seen in front of Alphabet logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration

Overview

  • Analysts forecast fiscal Q4 revenue near $102.17 billion and EPS around $1.77–$1.78, with several banks calling for a modest beat.
  • Counterpoint data show first‑10‑day iPhone 17 sales ran about 14% above iPhone 16 in the U.S. and China, with demand skewing toward higher‑margin Pro models.
  • Services revenue is projected at roughly $108.6 billion for fiscal 2025, up about 13% year over year, a high‑margin mix that could be ~25% of sales yet up to ~50% of profit and is supported by the Google search deal.
  • Shares briefly touched a $4 trillion valuation this week, while options pricing implies roughly a 4% move in either direction following Thursday’s results.
  • Key watch items include an estimated $1.1 billion tariff hit this quarter, continuing App Store legal scrutiny in the U.S., U.K. and EU, and lingering questions over Apple’s AI rollout timeline.