Apple (AAPL) will report its second quarter earnings after the bell on Thursday as Wall Street looks for early signs of the impacts of President Trump’s tariffs on the iPhone maker. The company is expected to report higher earnings but may be wary of its prospects for the rest of the year.
The second quarter wrapped up in late March, and because Trump held his tariff announcement on April 2, the full breadth of the duties’ effects may not come into view until Apple’s third quarter. Still, Q2 could provide a hint at what to expect in the coming quarters.
Apple stock is down 16% year to date but up 23% over the past 12 months.
Trump initially slapped China-produced goods with a 145% tariff, which could have sent Apple iPhone prices soaring. But Trump has since exempted devices like smartphones and computers from the duties.
Read more about Apple’s stock moves and today’s market action.
According to Reuters, Apple worked to get ahead of the tariffs by shipping 600 tons of iPhones from India to the US. The company is also leaning more heavily on its India operations for devices destined for America because that country faces a lower 26% reciprocal tariff versus China. According to the Financial Times, Apple hopes to eventually source all US iPhones from India.
But the Trump administration hasn’t ruled out the potential for future tariffs on those goods. The White House is currently working on a plan for duties on semiconductors and has said those could also apply to things like smartphones and computers.
Read more: The latest news and updates on Trump’s tariffs
“We don’t think Apple is ‘out-of-the-woods’ yet,” KeyBanc analyst Brandon Nispel wrote in an investor note. “We continue to see consensus expectations as too high for [Apple], particularly looking out to FY26, which calls for an accelerating growth profile.”
For the first quarter, Apple is expected to report earnings per share of $1.62 on revenue of $94.2 billion, according to Bloomberg consensus estimates. That would be an increase from the same period last year, when Apple saw EPS of $1.53 on revenue of $90.7 billion.
But Apple’s iPhone revenue is expected to decline to $45.6 billion in Q2 from $45.9 billion in Q2 last year. Wall Street anticipates the company will make up for the drop with improvements in Mac, iPad, wearables, and services revenue.
For the quarter, the company is expected to see Mac and iPad revenue of $7.7 billion and $6.1 billion, respectively. That’s up from $7.4 billion and $5.5 billion in Q2 2024. Wearables will bring in $8 billion, compared to $7.9 billion last year. Apple’s services revenue is set to come in at $26.7 billion, compared to $23.8 billion in Q2 2024.
