What factors drove Apple's 12% diluted EPS increase to $1.57 in Q3 2025?

Apple Inc. (US:AAPL) reported a diluted EPS of $1.57 for Q3 2025, marking a 12% increase year-over-year. This growth was primarily fueled by robust revenue expansion across multiple segments and a significant reduction in outstanding shares due to the company's capital return program.

Key factors contributing to this performance include:

• Strong Revenue Growth: Apple posted quarterly revenue of $94.0 billion, a 10% increase compared to the prior year. This revenue growth was broad-based, with double-digit growth observed in iPhone, Mac, and Services categories, and positive growth across all geographic segments globally.
• Expanding Installed Base: The company achieved a new all-time high in its installed base of active devices across all product categories and geographic segments, indicating strong customer loyalty and satisfaction.
• Increased Net Income: Net income rose to $23,434 million in Q3 2025, up from $21,448 million in Q3 2024.
• Share Repurchases: Apple's aggressive share repurchase program significantly contributed to the EPS increase by reducing the weighted-average diluted shares outstanding. The company repurchased $21.0 billion of its common stock during the third quarter of 2025, leading to a decrease in diluted shares from 15,348,175 thousand in Q3 2024 to 14,948,179 thousand in Q3 2025. This reduction in share count directly boosts EPS, even with a smaller percentage increase in net income.

These combined factors demonstrate a healthy operational performance coupled with effective capital management strategies.