Apple is set to report its first quarterly earnings since the release of its new lineup of iPhones on Thursday. After the company hit a $4tn market value this week for the first time, analysts are expecting it to demonstrate steady financial growth and a strong bottom line despite slow progress on artificial intelligence.
The slate of new iPhones, in particular the iPhone 17 and 17 Pro, have reinvigorated demand for Apple’s products, especially in China, where sales had been lagging behind projections. Demand for the ultra-thin iPhone Air remains the subject of speculation, with some analysts saying that the company has lowered production of the device and others asserting it has not.
Wall Street is anticipating Apple to report $102bn in revenue and earnings of $2.53 per share for the fourth quarter of 2025, according to analyst group LSEG.
John Belton, a portfolio manager at Gabelli Funds, said the positive estimates are due to increasing iPhone sales along with a price increase with the device’s newest model. “The most bullish data point coming out of Apple’s last earnings report was the iPhone revenue number,” Belton said. “The double-digit growth represented the best iPhone growth in at least three years.”
The strong iPhone revenue comes even as Apple has lagged behind other tech companies in releasing artificial intelligence products. The company has yet to fully roll out an AI product to compete with companies like Meta, Google and Microsoft. Apple has also struggled with the up-and-down tariffs that Donald Trump has levied on China and India, where the vast majority of the company’s manufacturing takes place.
Nevertheless, Apple’s stock has risen over the past few weeks, inflating the company’s market cap, one of only three companies worldwide worth more than $4tn. Both Nvidia and Microsoft have also hit that milestone.
Apple’s share price has increased by more than 50% since a low point in April, which analysts credit to the debut of its latest products. Along with the iPhone 17, the company also launched new AirPod earbuds with live translation tools and upgrades to its Apple Watch lineup.
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Apple is reporting earnings this week, along with other top tech behemoths, including Microsoft, Meta, Amazon and Alphabet, as the wider US stock market hits record highs. Microsoft and Alphabet posted strong results Wednesday, while Meta’s were more mixed, leading to a slump in share price.
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North American Retail Growth: 9% increase, led by strong Off-Road performance.
Dealer Inventory: Down 21% year-over-year.
Adjusted EBITDA Margin: Under pressure due to increased tariffs and normalized incentive compensation.
Adjusted EPS: $0.41, driven by strong mix and operational efficiencies.
Operating Cash Flow: $159 million for the quarter.
Free Cash Flow: Approximately $485 million year-to-date.
Off-Road Sales Growth: 8%, supported by a richer mix of vehicles.
Marine Sales Growth: 20%, driven by positive shipments of new boats.
Gross Profit Margin: Impacted by $35 million in new tariffs.
Full Year Sales Guidance: $6.9 billion to $7.1 billion.
Full Year Adjusted EPS Guidance: Expected to be a loss of approximately $0.05.
Release Date: October 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Polaris Inc (NYSE:PII) reported strong third quarter results with sales reaching $1.8 billion, driven by improved retail and a solid mix of Off-Road vehicles.
The company gained approximately 3 points of market share in the Off-Road Vehicle (ORV) segment, led by strong performance in the Polaris RANGER and crossover vehicles.
Dealer inventory levels have improved significantly, with a 21% year-over-year reduction, leading to healthier inventory and lower flooring expenses for dealers.
Polaris Inc (NYSE:PII) successfully executed operational efficiencies, exceeding their goal of $40 million in structural operational efficiencies for the year.
The sale of a majority stake in Indian Motorcycle is expected to be accretive to adjusted EBITDA by approximately $50 million and to adjusted EPS by approximately $1, allowing Polaris to focus on high-margin growth opportunities.
Adjusted EBITDA margin was under pressure due to increased tariffs and normalized incentive compensation.
The company faced headwinds in the Youth segment due to a shift in production out of China, which is expected to continue into early Q4.
Tariffs are expected to have a significant impact, with an anticipated $90 million hit in 2025, increasing to over $200 million in 2026.
The On-Road segment experienced a decline in sales, driven by softness in the broader motorcycle market and within the Slingshot business.
Fourth quarter adjusted EPS is expected to be lower than the third quarter due to increased tariffs, negative mix, and higher operating expenses.
Q: What drove the 9% growth in ORV retail and share gains in the quarter? A: Michael Speetzen, CEO, explained that the growth was due to right-sized inventory, a broad RANGER lineup, and significant quality improvements. The RANGER 500 attracted new customers, and the NorthStar rewards program enhanced dealer performance, contributing to the share gains.
Q: What are the expectations for fiscal 2026, considering the Indian Motorcycle deal and tariffs? A: Michael Speetzen, CEO, noted that the Indian Motorcycle deal will significantly impact revenue but add $50 million in EBITDA and $1 in EPS. Tariffs are expected to be just over $200 million, but mitigation efforts are underway. The company anticipates a flat industry with potential growth from shipping aligning with retail demand.
Q: Can you provide insights into the consumer profile for the RANGER 500? A: Michael Speetzen, CEO, stated that the RANGER 500 attracts new customers who previously couldn’t find an entry point into Polaris products. These customers often have small properties and are new to powersports, transitioning from alternatives like golf carts.
Q: How did the Factory Authorized Clearance (FAC) program impact demand, and what are the expectations for Q4? A: Michael Speetzen, CEO, mentioned that the FAC program successfully generated excitement without significant cost increases. It helped reduce noncurrent inventory, and October trends indicate continued strength in key areas like RANGER XD and XPEDITION, with Q4 retail expected to rise in low single digits.
Q: What are the key takeaways from 2025, excluding tariffs, and what lessons have been learned? A: Robert Mack, CFO, highlighted that promotions were heavier than expected, but mix and plant performance exceeded expectations. Operational execution improved significantly, with plants outperforming targets, indicating strong future potential for operational improvements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Nick Elphick
