Apple and Amazon Report Strong Earnings Amid Cloud Service Disappointments
Both tech giants exceed revenue expectations; however, their cloud divisions fall short of analyst forecasts.
Amazon.com, Inc. concluded the first quarter of 2025 with significant earnings and revenue that surpassed analysts' expectations, although the performance of its cloud services disappointed investors.
The company reported revenues of $155.67 billion, exceeding the projected $155.04 billion.
Net income for the quarter reached $17.13 billion, or $1.59 per share, compared to $10.43 billion, or 98 cents per share in the same quarter last year.
Market expectations had anticipated earnings of $1.36 per share.
In terms of its cloud computing segment, Amazon Web Services (AWS) generated $29.3 billion, falling short of the anticipated $29.42 billion.
Meanwhile, advertising revenue totaled $13.92 billion, surpassing expectations of $13.74 billion.
For the current quarter, Amazon provided a revenue forecast of between $159 billion and $164 billion, reflecting an anticipated growth rate of 7% to 11%.
Market expectations for the second quarter stand at $160.9 billion.
Amazon’s stock has declined by 13% since the beginning of the year, contrasting with an 8% drop in the Nasdaq index and a 4% fall in the Dow Jones Industrial Average during the same time frame.
The company is currently valued at $2.03 trillion.
In parallel, Apple Inc. reported its earnings after the close of the New York Stock Exchange, exceeding analyst forecasts.
The technology giant recorded a diluted earnings per share of $1.65, with revenues rising by 5.1% to $95.4 billion.
Analysts had estimated a diluted earnings per share of $1.63 and revenues of $94.7 billion.
Despite the overall revenue growth, Apple's services division, which includes cloud services as well as Apple Music and Apple TV, did not meet expectations.
Revenue from this segment increased by 11.6%, totaling $26.65 billion, but analysts had projected $26.7 billion.
The revenue growth was attributed to notable increases across most of Apple's product categories.
iPhone sales rose by 1.9% to $46.8 billion, surpassing analyst predictions of $45.6 billion.
iPad sales surged by 15.2% to $6.4 billion, exceeding forecasts of $6.1 billion, and Mac sales increased by 6.7% to $7.95 billion, higher than the predicted $7.7 billion.
Conversely, the wearables and accessories category underperformed, recording a 4.9% decline in revenue to $7.5 billion, against analyst expectations of $8 billion.
Geographically, except for a 2.3% decline in revenues from China to $16 billion, Apple observed growth across its operational regions.
Revenues in the Americas grew by 8.2% to $40.3 billion, in Europe they decreased by 1.4% to $24.45 billion, in Japan, they increased by 16.6% to $7.3 billion, and the Asia-Pacific region experienced an 8.4% rise to $7.29 billion.
Investors are awaiting comments from Apple CEO Tim Cook regarding U.S. President Donald Trump's tariff policies.
Currently, import tariffs from China stand at 145%; however, a temporary exemption has been granted for electronics, including smartphones and computers.
Reports last week indicated that Apple plans to shift much of its iPhone production destined for the U.S. to India by the end of 2026.
Additionally, Apple announced a dividend of $0.26 per share to be paid on May 15 to shareholders of record as of May 12.
In commenting on the earnings report, Cook stated that Apple delivered strong quarterly results, including double-digit growth in services, and expressed pride in the introduction of the iPhone 16e into their lineup and the launch of new Macs and iPads.
He highlighted a reduction in carbon emissions by 60% over the past decade.
The company reported revenues of $155.67 billion, exceeding the projected $155.04 billion.
Net income for the quarter reached $17.13 billion, or $1.59 per share, compared to $10.43 billion, or 98 cents per share in the same quarter last year.
Market expectations had anticipated earnings of $1.36 per share.
In terms of its cloud computing segment, Amazon Web Services (AWS) generated $29.3 billion, falling short of the anticipated $29.42 billion.
Meanwhile, advertising revenue totaled $13.92 billion, surpassing expectations of $13.74 billion.
For the current quarter, Amazon provided a revenue forecast of between $159 billion and $164 billion, reflecting an anticipated growth rate of 7% to 11%.
Market expectations for the second quarter stand at $160.9 billion.
Amazon’s stock has declined by 13% since the beginning of the year, contrasting with an 8% drop in the Nasdaq index and a 4% fall in the Dow Jones Industrial Average during the same time frame.
The company is currently valued at $2.03 trillion.
In parallel, Apple Inc. reported its earnings after the close of the New York Stock Exchange, exceeding analyst forecasts.
The technology giant recorded a diluted earnings per share of $1.65, with revenues rising by 5.1% to $95.4 billion.
Analysts had estimated a diluted earnings per share of $1.63 and revenues of $94.7 billion.
Despite the overall revenue growth, Apple's services division, which includes cloud services as well as Apple Music and Apple TV, did not meet expectations.
Revenue from this segment increased by 11.6%, totaling $26.65 billion, but analysts had projected $26.7 billion.
The revenue growth was attributed to notable increases across most of Apple's product categories.
iPhone sales rose by 1.9% to $46.8 billion, surpassing analyst predictions of $45.6 billion.
iPad sales surged by 15.2% to $6.4 billion, exceeding forecasts of $6.1 billion, and Mac sales increased by 6.7% to $7.95 billion, higher than the predicted $7.7 billion.
Conversely, the wearables and accessories category underperformed, recording a 4.9% decline in revenue to $7.5 billion, against analyst expectations of $8 billion.
Geographically, except for a 2.3% decline in revenues from China to $16 billion, Apple observed growth across its operational regions.
Revenues in the Americas grew by 8.2% to $40.3 billion, in Europe they decreased by 1.4% to $24.45 billion, in Japan, they increased by 16.6% to $7.3 billion, and the Asia-Pacific region experienced an 8.4% rise to $7.29 billion.
Investors are awaiting comments from Apple CEO Tim Cook regarding U.S. President Donald Trump's tariff policies.
Currently, import tariffs from China stand at 145%; however, a temporary exemption has been granted for electronics, including smartphones and computers.
Reports last week indicated that Apple plans to shift much of its iPhone production destined for the U.S. to India by the end of 2026.
Additionally, Apple announced a dividend of $0.26 per share to be paid on May 15 to shareholders of record as of May 12.
In commenting on the earnings report, Cook stated that Apple delivered strong quarterly results, including double-digit growth in services, and expressed pride in the introduction of the iPhone 16e into their lineup and the launch of new Macs and iPads.
He highlighted a reduction in carbon emissions by 60% over the past decade.
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