Apple Exceeds Earnings Estimates Despite Weakness in Services and Greater China Sales
Apple reported its strongest June quarter on record, surpassing Wall Street's expectations for both revenue and earnings. Revenue reached $109.42 billion, up 16% year-over-year, while diluted earnings per share rose to $2.02 from $1.89 expected. Despite the strong results, Apple shares fell in extended trading due to concerns over below-forecast services revenue and weaker-than-expected sales in Greater China. The company's Mac segment delivered a significant upside surprise with 29% year-over-year growth, while iPhone revenue climbed by 22%. However, investors were cautious about the impact of one-time tariff refunds on profitability. These refunds contributed to an elevated gross margin and earnings per share but are unlikely to recur at the same scale. Apple's stock closed slightly lower before falling further in after-hours trading as traders reassessed its valuation following a strong July rally. The report also marks Tim Cook’s final quarter as CEO, with John Ternus set to take over on September 1.
Tickers: $AAPL
Topics: Apple China Sales Earnings Beat Services Revenue Disappointment Tariff Refunds