Two of the world’s most valuable technology companies reported robust earnings this week, demonstrating the resilience of their diversified business models amid massive artificial intelligence investments.
Apple Inc. (NASDAQ: AAPL) capped fiscal 2025 with record Services revenue of US$109.2 billion, while Amazon.com Inc. (NASDAQ: AMZN) saw its cloud division AWS re-accelerate to 20% growth in Q3 2025, its fastest pace since 2022.
The results underscore how mega-cap tech companies are successfully balancing aggressive AI infrastructure spending with maintaining profitability across their core businesses.
Apple: Services Milestone Powers Record Profitability
Apple delivered impressive fiscal 2025 results with total revenue climbing 6.4% year-on-year (YoY) to US$416.2 billion, driven by a landmark performance in its high-margin Services segment.
Services revenue surged 13.5% to US$109.2 billion, establishing this division as an increasingly critical growth engine alongside the company’s flagship hardware products.
The Cupertino-based tech giant saw net income jump 19.5% to US$112.0 billion, with diluted earnings per share (EPS) rising to US$7.46 from US$6.08 in the prior year.
The strong bottom-line growth was aided by an improved tax rate of 15.6% compared to 24.1% previously.
iPhone revenue grew a modest 4.2% to US$209.6 billion, while Mac sales impressed with 12.4% growth to US$33.7 billion, offsetting a 3.6% decline in the Wearables, Home and Accessories category to US$35.7 billion.
Despite the strong operational performance, free cash flow declined 9.2% to US$98.8 billion (calculated as operating cash flow of US$111.5 billion minus capital expenditure of US$12.7 billion) due to increased capital spending and working capital headwinds.
Apple maintained a fortress balance sheet with US$35.9 billion in cash against US$98.7 billion in total debt (including US$90.7 billion in term debt and US$8.0 billion in commercial paper).
Amazon: AWS Powers Growth Despite Massive AI Investments
Amazon delivered robust third-quarter 2025 (3Q2025) results with net sales climbing 13% YoY to US$180.2 billion, powered by a standout performance from AWS which re-accelerated to 20% growth – its fastest pace since 2022.
The cloud computing division generated US$33.0 billion in revenue, benefiting from surging demand for AI services and core infrastructure as the company added 3.8 gigawatts of power capacity over the past year.
While operating income remained flat at US$17.4 billion due to US$4.3 billion in special charges for an FTC settlement (US$2.5 billion) and severance costs (US$1.8 billion), the underlying business showed remarkable strength with adjusted operating income up 25%.
Net income in 3Q2025 surged 39% to US$21.2 billion, boosted by US$9.5 billion in pre-tax gains from Anthropic investments, pushing diluted EPS to US$1.95 from US$1.43.
The e-commerce giant is betting heavily on AI infrastructure, with capital expenditure soaring to US$115.9 billion on a trailing twelve-month basis, causing free cash flow to plummet 69% to US$14.8 billion.
As of 30 September 2025, Amazon held US$66.9 billion in cash against US$50.7 billion in long-term debt.
Beyond AWS, advertising services revenue jumped 24% to US$17.7 billion while third-party seller services grew 12% to US$42.5 billion.
Looking ahead, management expects 4Q2025 net sales of US$206 to US$213 billion with operating income of US$21 to 26 billion, signaling continued momentum across all business segments.
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