Apple’s stellar Q3 2025 financial performance, boasting a profit of $23.4 billion from a remarkable $94.04 billion in revenue, was notably bolstered by Google’s hefty payments. This tech giant reportedly shells out between $18-$20 billion to keep its search engine as the default choice on Apple’s devices, contributing approximately 9% to Apple’s gross profit at times. However, this lucrative partnership faces potential disruption from antitrust authorities, with Apple’s CFO cautioning that Q4 earnings might take a hit.
For the first time, Apple openly acknowledged the risk of losing significant revenue from Google. CFO Kevan Parekh highlighted this during the company’s Q3 2025 earnings discussion, referring to leaked court documents that exposed Google’s $20 billion payment to retain its search engine in Safari on iPhones, iPads, and Macs.
In his remarks about the upcoming quarter, Parekh expressed the expectation that global tariff rates, policies, and the existing revenue-share agreement with Google will remain stable. This stability is crucial, especially in light of an August 2024 U.S. federal ruling that deemed the Google-Apple deal a breach of antitrust laws. Although the court has not yet dismantled the agreement, potential appeals could entangle both companies in prolonged legal battles.
CEO Tim Cook chose not to speculate on the court’s final decision, preferring to direct attention to Apple’s impressive quarterly achievements. While the legal complexities unfold, Apple continues to benefit from its collaboration with Google, and Cook aims to maintain the spotlight on the company’s robust financial performance.
