Apple Inc (NASDAQ:AAPL) beat analyst estimates for both revenue and earnings per share for a 15th straight quarter on Thursday. Investors may be surprised to learn how much of an impact tariff refunds had on the earnings beat.
Apple Q3 Earnings
Apple reported third-quarter earnings per share of $2.02, beating the Street consensus estimate of $1.89 by 13 cents, according to data from Benzinga Pro.
In a statement, the company attributed 11 cents per share in earnings coming from tariff refunds. Doing the math, this means that as much as 85% of the 13-cent per share earnings beat came from tariff refunds.
"Company gross margin was 50.1 percent, including a favorable impact of approximately 2 percentage points from tariff refunds. Diluted earnings per share was $2.02, up 29 percent year over year, and included a favorable impact of $0.11 from tariff refunds," Apple said.
Without the one-time tariff benefit, the earnings beat would have been only two cents per share.
Supreme Court Ruling Against Trump’s Tariffs
In February, the United States Supreme Court ruled against President Donald Trump’s tariffs, saying the import levies were illegal and unconstitutional because the president lacked the authority to unilaterally impose them. The president had previously issued tariffs of various percentages on various countries around the world.
This included rates above 40% for Vietnam and China, which hurt Apple. The company was able to navigate the tariffs by shifting some production to India, which had a lower rate, and to CEO Tim Cook lobbying the president on global trade.
The White House later excluded certain items and sectors from the tariffs, which helped protect Apple from higher prices and lower margins for its important revenue-driving iPhone and other products, as reported by 9to5Mac.
Former Wedbush analyst Dan Ives previously argued that Apple CEO Tim Cook might need to lobby Trump after new tariffs were placed on countries after the Supreme Court ruling. Ives said Cook’s role had shifted from being 10% politician and 90% CEO to a new range of 25% politician and 75% CEO due to the tariff battles.
Ives said Cook’s ability to navigate the supply chain concerns could be his "Hall of Fame moment" for his legacy with Apple.
Apple’s Fine Line With Tariffs
Apple and Cook have a positive relationship with President Trump, which may bring a surprise that the tariff refund impact was so large in the quarter.
Apple was mentioned as one of several companies that may not seek tariff refund reimbursement this year, which led to Trump saying he would "remember" the companies that didn’t go after refunds.
The earnings report shows Apple did go after tariff refunds, a move that could create some tension with the president.
Cook, who is set to move on from the CEO role at Apple on Sept. 1, is set to become the Executive Chairman and still maintain some political interference control for the technology giant.
“As executive chairman, Cook will assist with certain aspects of the company, including engaging with policymakers around the world,” Apple said.
Cook once attended the White House to present a 24-kt gold-based plaque to Trump. This “gift” happened around the time Apple landed a tariff exemption, and became a punchline on an episode of “South Park,” which made fun of business executives lavishing Trump with items.
Cook also attended Trump’s private screening of the “Melania” documentary, along with political leaders and other business executives.
In October 2025, Trump showered Cook with praise in front of other business leaders. “You’ve done more than the entire group here,” Trump said at the time.
Apple rewarded shareholders with an earnings per share beat thanks to the tariff refunds. Time will tell if this move changes anything between the relationship of Cook and Trump.
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