From Nasdaq: 2025-04-30 11:16:00

Apple is set to report its second-quarter fiscal 2025 results on May 1, with iPhone sales facing tough competition in China. However, strong growth in the Services business could help offset this challenge. Estimates suggest a 1.1% year-over-year growth in iPhone net sales and a 12.1% growth in Services revenue.

The Services segment of Apple’s business is expected to benefit from a growing install base of active devices, with over 1 billion paid subscribers across various services. Popular shows like Severance and Ted Lasso on Apple TV+ are attracting more users to the Services portfolio, which now boasts over 1 billion paid subscribers.

Apple’s Mac sales are expected to see year-over-year growth, driven by strong demand for new models featuring M4, M4 Pro, and M4 Max chips. The Zacks Consensus Estimate for fiscal second-quarter Mac net sales is $7.79 billion, indicating a 4.6% increase from the previous year.

iPad sales for Apple are also expected to increase year over year, with the introduction of faster and more powerful models like the iPad Air with the M3 chip. The Zacks Consensus Estimate for fiscal second-quarter iPad net sales is $5.92 billion, reflecting a 6.5% growth from the same period last year.

Stocks worth considering ahead of Apple’s earnings report include Affirm (AFRM), Compass (COMP), and CyberArk Software (CYBR). These companies have favorable Earnings ESP and Zacks Rank combinations for potential earnings beats in their upcoming releases. Affirm, Compass, and CyberArk Software are set to report their respective financial results in May.



Read more at Nasdaq: Will Strong Services Offset Weak iPhone Sales for AAPL’s Q2 Earnings?