Apple Q3 Earnings Preview: Stock Rises as AI, Tariffs Loom

  • Apple will announce its third-quarter fiscal 2025 earnings on July 31.
  • The company expects year-over-year revenue growth in the low to mid-single digits and a gross margin between 45.5% and 46.5%.
  • Apple’s stock price is $213, up 6% over the past month, but the company has faced challenges including tariff threats.
  • Analysts from Zacks rate Apple as a “hold,” while Bank of America and CNN analysts see potential for stock price growth in the coming months.
  • Apple is introducing AI features, which could increase demand for its products, especially Mac computers.

Apple will issue its quarterly earnings report for the third quarter of fiscal year 2025 on July 31. The technology company expects its revenue for the period ending in June to grow in the low to mid-single digits compared to the same quarter last year. Apple projects a gross margin of 45.5% to 46.5%, factoring in an estimated $900 million impact due to tariffs on some of its products.

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Apple shares are currently valued at $213, having risen by 6% during the past month. In 2025, the company experienced challenges, particularly due to tariff risks that affected its supply chain and production. Apple has been shifting its manufacturing from China to India despite trade warnings from the U.S. government.

The company’s financial data shows mixed performance. Apple’s price-to-earnings (P/E) ratio dropped from 39.37 times earnings in Q4 2024 to 32.28 in Q3 2025, indicating that the stock may be more attractively priced for investors. Revenue growth occurred in Q1 2025 at 4.91%, but earnings and free cash flow remained negative according to available figures.

Zacks analysts currently rate Apple as a “hold,” stating that they do not expect the earnings report to cause significant changes in stock value. On the other hand, Bank of America’s analyst Wamsi Mohan wrote that Apple’s stock has “upside potential” in July, citing a forward P/E ratio of approximately 26.5, slightly below its five-year average of 27.2. He sees this as an entry point, suggesting the stock could reach $235. Separately, CNN analysts forecast possible gains up to $275 over the next year.

Apple is currently trading near the midpoint of its 52-week range and sits below its 200-day simple moving average. The company’s recent advancements in Artificial Intelligence, particularly with plans for AI-enabled personal computers, may help increase Mac sales over time. For related analysis, see: Tesla-stock-august-2025-happen-093042528.html”>Buy or Skip Tesla Stock in August 2025: What Could Happen to TSLA?.

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