Apple stock dropped over 7% in premarket trading Friday as investors reacted to the company’s earnings report, the last under veteran CEO Tim Cook.
Apple announced its third quarter earnings, exceeding analysts’ forecasts due to strong iPhone sales. However, shares fell as Services and Greater China sales fell short of expectations.
For the third quarter, Apple reported EPS of $2.02 on revenue of $109.4 billion, surpassing the $1.89 EPS and $108.8 billion in revenue that analysts expected, and up 16 percent year over year.
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’s iPhone revenue reached $54.2 billion, surpassing the expected $53.5 billion. In the same quarter last year, sales were $44.5 billion. Services, Apple’s second-largest business, generated $30.7 billion, below the expected $31.3 billion.
Revenue in Greater China was $18.8 billion, falling short of analyst estimates of $19.5 billion.
Cook told investors, “Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment. At WWDC26, we were thrilled to introduce the all-new Siri AI, alongside all of Apple’s latest software innovations and important new child safety features.”
“We are very pleased with our record business performance during the quarter, which set new June quarter records for both EPS and operating cash flow,” said Kevan Parekh, Apple’s CFO. “Our installed base of active devices also reached a new all-time high across all major product categories and geographic segments.”
By CEO NA Editorial Staff
