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Apple Earnings: Should Investors Take a Bite?

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This week’s reporting docket is headlined by many notable companies, a list that includes beloved Mag 7 member Apple (AAPL - Free Report) . Shares have had a rough showing in 2025 so far, down roughly 8% and widely underperforming relative to the S&P 500.

But can the tech titan’s results push some life back into shares? Let’s take a closer look at revisions and a few other key metrics to keep an eye on.

Earnings & Sales Revisions Primarily Unchanged

Analysts have been quiet concerning their EPS revisions, with the $2.36 Zacks Consensus EPS estimate unchanged over recent months and suggesting 8% growth year-over-year.

Top line revisions have been slightly more negative but have otherwise been stable since a downward adjustment in early November of last year. The $124 billion expected suggests 3.7% growth year-over-year.

As shown below, the company’s top line has remained rather stagnant over recent years. Apple’s overall top and bottom line growth has been cooling for some time now, with it no longer recognized as the growth machine it used to be.

Zacks Investment Research
Image Source: Zacks Investment Research

Key Apple Metrics to Watch

It’s critical to keep a close eye on Apple’s China results, as the region has become a big thorn in the side amid a growth cooldown stemming from increased competition. The company’s China revenue has fallen short of our consensus estimate in five consecutive releases, reflective of the struggles.

The Zacks Consensus Estimate for China sales for the upcoming print stands at $22.1 billion, 6.5% higher than the year-ago figure and reflective of the first positive year-over-year change in several quarters.

Zacks Investment Research
Image Source: Zacks Investment Research

Another key metric to watch in the release is Apple’s Services results, which have regularly been robust and reached record levels throughout its latest period. The Zacks Consensus estimate for the metric stands at $26.2 billion, 14% higher than the year-ago figure.

As shown below, the company has regularly exceeded expectations on the metric, with the one exception coming in its latest print.

Zacks Investment Research
Image Source: Zacks Investment Research

And last but not least, the company’s iPhone results will be under heavy scrutiny. Apple has bounced back on the metric in recent quarters, as shown below, but Apple Intelligence will likely be discussed significantly.

Many have remained skeptical of Apple Intelligence, and we’ll likely get a good read on whether or not the technology and new features have led to greater sales. The iPhone remains the biggest top line contributor for Apple, accounting for nearly 50% of sales throughout its latest quarter.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Beloved Apple (AAPL - Free Report) is gearing up to reveal its next set of quarterly results this week, with many other notable companies slated to report.

The stock is currently a Zacks Rank #4 (Sell), reflective of bearishness among analysts. Commentary and guidance will be critical for the stock’s movement post-earnings, likely dictated by the adoption rate and use of Apple Intelligence.

In addition to the iPhone’s new capabilities, investors should also keep a close eye on China results and momentum within its Services segment, with the former suppressing growth over recent periods and the latter supporting it. Still, it’s worth noting that China sales are forecasted to show the first positive year-over-year change in several periods.


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