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The
Cupertino, California-based company earned $30.71 billion, or
$2.10 per share, in the July-September period. That's up 12%
from $27.47 billion, or $1.85 per share, in the same period a
year earlier. Apple said its earnings included 5 cents per share
from tariff refunds.
Revenue rose 12% to $114.5 billion from $102.5 billion.
Analysts, on average, were expecting earnings of $1.99 per share
on revenue of $113.4 billion, according to a poll by FactSet.
“Apple’s strong earnings come in the wake of a recent tech
sell-off, as investors question the enormous cost and uncertain
returns of the AI boom driven by Apple’s Big Tech counterparts,"
said Emarketer analyst Jacob Bourne, adding that record iPhone
revenue and strong growth in China demonstrate the resilience of
Apple's business.
While its rivals are facing investor uncertainty over massive
investments in artificial intelligence, Bourne said Apple's
“tepid approach" to AI infrastructure spending helps preserve
its cash flow — while partnerships with companies like Alphabet
could help Apple to strengthen its AI capabilities without
taking on the same financial risks as its peers.
Despite the solid quarterly numbers, Apple said its closely
watched gross margin, which was 47.9% during the fourth quarter,
will be lower in the December quarter — between 45% and 46% —
primarily due to higher memory costs and expenses related to its
release of Siri AI.
While Apple's stock was flat after the earnings numbers came
out, it declined 2.6% to $329.60 during the earnings call. The
stock had closed down 1.8% at $338.32 in regular trading.
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