Apple to report second quarter earnings as tariff uncertainty clouds Big Tech outlook

Apple (AAPL) volition study its 2nd 4th net aft the doorbell connected Thursday arsenic Wall Street looks for aboriginal signs of the impacts of President Trump's tariffs connected the iPhone maker. The institution is expected to study higher net but whitethorn beryllium wary of its prospects for the remainder of the year.

The 2nd 4th wrapped up successful precocious March, and due to the fact that Trump held his tariff announcement connected April 2, the afloat breadth of the duties' effects whitethorn not travel into presumption until Apple's 3rd quarter. Still, Q2 could supply a hint astatine what to expect successful the coming quarters.

Apple banal is down 16% twelvemonth to day but up 23% implicit the past 12 months.

Trump initially slapped China-produced goods with a 145% tariff, which could person sent Apple iPhone prices soaring. But Trump has since exempted devices similar smartphones and computers from the duties.

Read much astir Apple's banal moves and today's marketplace action.

According to Reuters, Apple worked to get up of the tariffs by shipping 600 tons of iPhones from India to the US. The institution is besides leaning much heavy connected its India operations for devices destined for America due to the fact that that state faces a little 26% reciprocal tariff versus China. According to the Financial Times, Apple hopes to yet root each US iPhones from India.

But the Trump medication hasn't ruled retired the imaginable for aboriginal tariffs connected those goods. The White House is presently moving connected a program for duties connected semiconductors and has said those could besides use to things similar smartphones and computers.

Read more: The latest quality and updates connected Trump's tariffs

"We don't deliberation Apple is 'out-of-the-woods' yet," KeyBanc expert Brandon Nispel wrote successful an capitalist note. "We proceed to spot statement expectations arsenic excessively precocious for [Apple], peculiarly looking retired to FY26, which calls for an accelerating maturation profile."

For the archetypal quarter, Apple is expected to study net per stock of $1.62 connected gross of $94.2 billion, according to Bloomberg statement estimates. That would beryllium an summation from the aforesaid play past year, erstwhile Apple saw EPS of $1.53 connected gross of $90.7 billion.

But Apple's iPhone gross is expected to diminution to $45.6 cardinal successful Q2 from $45.9 cardinal successful Q2 past year. Wall Street anticipates the institution volition marque up for the driblet with improvements successful Mac, iPad, wearables, and services revenue.

For the quarter, the institution is expected to spot Mac and iPad gross of $7.7 cardinal and $6.1 billion, respectively. That's up from $7.4 cardinal and $5.5 cardinal successful Q2 2024. Wearables volition bring successful $8 billion, compared to $7.9 cardinal past year. Apple's services gross is acceptable to travel successful astatine $26.7 billion, compared to $23.8 cardinal successful Q2 2024.