tariffs
What Executives Are Saying
“Today, we are proud to report a June quarter revenue record of $94 billion, up 10% from a year ago, which was better than we expected. EPS set a June quarter record of $1.57, up 12% year over year.”
“We see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments.”
“In terms of pull forward, we would estimate the pull forward of demand into April specifically to be about one point of the 10 points in terms of people buying because of discussions about tariffs.”
“The vast majority of the iPhones sold in the U.S. have a country of origin of India. And the vast majority of the other products, the Macs, iPad and Watch have a country of origin of Vietnam.”
“We're making good progress on a more personalized Siri, and we do expect to release the features next year. We are significantly growing our investment.”
“We expect our September quarter total company revenue to grow mid to high single digits year over year. We expect services revenue to grow at a year over year rate similar to what we reported in the June quarter.”
Companies in This Theme
Record June quarter at $94B with broad-based growth. iPhone up 13% with a June quarter upgrader record. Services hit all-time high at $27.4B. Tariff headwind is real at $800M this quarter and $1.1B projected next quarter, but Apple is absorbing it within strong margins.
Crushing margins collapsed 93% as deferred U.S. biofuel policy killed demand. Full-year EPS guidance slashed from ~$4.00 to $3.25-$3.50. The only bright spots are Nutrition (up 24%) and ethanol pricing, but they can't offset the structural margin compression in the core oilseeds business.
Aptiv is splitting into two public companies to unlock value. New Aptiv (Intelligent Systems + Engineered Components) targets 4-7% revenue growth and ~21% EBITDA margins by 2028. The EDS spin-off signals automotive supplier maturity — growth is moderating to 3-4%, and the company is pivoting hard into non-auto end markets like aerospace, telecom, and industrial AI at the edge.
KEYTRUDA franchise keeps powering ahead at 10% growth, and WINREVAIR's 141% ramp is validating the cardiovascular expansion thesis. But GARDASIL's 24% decline in China is a structural headwind, not a blip. The $70B+ domestic manufacturing commitment signals long-term confidence but compresses near-term margins.
Pricing power is strong (+5% price gains) but volume is falling hard (-6% total, -7% in Tools & Outdoor). They're spending tariff-mitigation energy just to stay flat. The cost reduction program is nearly done ($1.9B of $2.0B target) which means the easy margin gains are behind them.
Volume declines across both segments with snack category softness persisting. Tariffs are hitting gross margins directly. Cost savings program delivering $15M/quarter but not enough to offset inflation and volume erosion.
Hollister is crushing it with 16% growth, but Abercrombie brands are decelerating — down 2% with inventory being managed tightly. Tariffs are eating 210 basis points of operating margin this quarter, with ~$90M full-year tariff expense baked into guidance. Revenue growth is real but profitability is compressing — operating margin dropped from 14.8% to 12.0% YoY.
Allegion is firing on all cylinders: double-digit reported revenue growth, Americas non-residential leading the charge with mid-single-digit organic growth in both resi and non-resi, and they're raising full-year guidance on both revenue and EPS. Tariff costs of ~$40M are being fully offset through pricing actions — no margin squeeze.
Orthodontic and dental markets remain mixed, especially in North America. International markets (EMEA, APAC, LatAm) are driving volume growth. Restructuring charges of $88M signal serious cost-cutting underway while teens/kids category is a bright spot at 8.3% YoY growth.
Axon is on a seven-quarter streak of 30%+ growth with ARR accelerating to 41% YoY. Software & Services now 43% of revenue with 124% net revenue retention. Public safety budgets are flowing and enterprise expansion into retail, healthcare, and logistics is opening a second growth vector.
Competitor Mentions Across This Theme
| Competitor | Mentions | By | Sentiment |
|---|---|---|---|
| Wind River | 15 | 1 company | BULLISH |
| 4 | 2 companies | CAUTIOUS | |
| Wilmar International | 4 | 1 company | CAUTIOUS |
| DEWALT | 4 | 1 company | BULLISH |
| LaNova Medicines | 4 | 1 company | NEUTRAL |
| AstraZeneca | 3 | 1 company | NEUTRAL |
| Daiichi Sankyo | 3 | 1 company | BULLISH |
| Verona Pharma | 3 | 1 company | BULLISH |
“Wind River Studio tools for ADAS ML stack development, OTA updates, and data harvesting”
— on Wind River
Operator Implications
Apple's installed base hit all-time highs across every product and geo segment. If you're building on Apple platforms, your addressable market is expanding. But watch the tariff math — $1.1B in projected Q4 costs means Apple may eventually pass costs to consumers or squeeze supplier margins. The AI investment acceleration is real: CapEx is growing substantially with AI as the primary driver.
If you're selling into ag-tech or biofuel supply chains, budget cycles are frozen until Washington provides biofuel policy clarity — probably not until mid-2026. Shift sales focus to Nutrition/flavors customers where ADM is actually growing.
If you sell into automotive OEMs, budget cycles are getting longer and more complex as suppliers like Aptiv restructure. But if you build edge AI, robotics, or industrial automation solutions, Aptiv's aggressive pivot into non-auto markets signals real demand from a $12B+ buyer willing to invest organically and via M&A.
If you're selling into pharma or hospital systems, KEYTRUDA subcutaneous approval (one-minute administration) is about to reshape infusion center economics — watch for procurement cycle changes in oncology clinics.
If you're selling into construction, remodeling, or trades channels, volume is contracting despite price holds. Budget holders are buying less at higher prices — classic demand destruction signal. Plan for unit volume declines through H1 2026.
If you're selling into grocery retail or food distribution, expect private label pressure and tighter shelf-space decisions. Brands that can't prove velocity are getting cut.
If you're selling into retail or consumer discretionary, the bifurcation is the signal: value-oriented brands (Hollister) are thriving while premium positioning (Abercrombie) is softening. Tariff costs are being absorbed, not passed through — watch for margin pressure to intensify in Q4.
If you're selling into commercial construction or building security, buyer budgets are healthy and pricing power is holding. This is a green light to push enterprise deals — procurement isn't squeezing vendors in this category right now.
If you're selling into dental or orthodontic practices, expect North American budgets to stay tight. International expansion and pediatric/teen segments are where the growth is — orient your GTM accordingly.
If you're building for public safety or enterprise physical security, Axon is consolidating the stack fast — from body cams to 911 dispatch to drones. Either integrate into their ecosystem or prepare to compete against a $2.7B-revenue platform with $11.4B in contracted backlog.