Apple fiscal Q3 results topped Wall Street forecasts on Thursday, driven by robust demand for the iPhone and renewed momentum in MacBook sales.
Last month, the company raised prices on certain Mac and iPad models, citing a memory chip shortage tied to the artificial intelligence boom. Apple described the surge in demand as an unprecedented challenge for consumer electronics suppliers. While iPhone prices were left unchanged, analysts and shoppers widely expect increases later this year.
For the April through June quarter, Apple reported net income of $29.79 billion, or $2.02 per share. That compared with $23.43 billion, or $1.57 per share, in the same period a year ago, an increase of 27%.
Revenue rose 16% to $109.42 billion, up from $94.04 billion a year earlier.
Consensus estimates had called for earnings of $1.89 per share on revenue of $109 billion, according to data from FactSet. The company said tariff refunds added 11 cents per share to the quarter’s earnings.
“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,” CEO Tim Cook said. The call marked Cook’s final earnings appearance. He announced in April that he will retire after 15 years leading the company. John Ternus, Apple’s senior vice president of Hardware Engineering, is set to take over on September 1.
“I couldn’t be more confident in his leadership, in the executive team and the extraordinary people at Apple,” Cook added.
Apple continues to generate strong cash flow without the heavy artificial intelligence outlays facing some other large technology firms, and that showed across much of its operations, said Thomas Monteiro of Investing.com. He said Apple stands out as a safe haven as investors grow more anxious about free cash flow elsewhere in Big Tech.
Monteiro cautioned that rising memory costs could weigh on results in coming quarters, and the company will not benefit again from the same tariff-related boost to margins. He said the expected September iPhone launch and additional price increases should help cushion the impact.
Shares of the Cupertino, California company, which recently reclaimed the title of the world’s most valuable public firm from Nvidia, fell $7.52, or 2.3%, to $325.91 in after-hours trading.
Apple fiscal Q3 results highlight pricing moves and AI pressure
Apple’s recent price adjustments on Macs and iPads underscore the pressure that AI-related component constraints are placing on hardware makers. Executives and analysts expect those dynamics, alongside potential iPhone pricing later this year, to remain a key factor as the company enters its September product cycle.
As investors weigh Apple’s performance against broader market volatility, some are also reassessing where to keep their cash, including options like high-yield savings accounts. The company’s strong balance sheet and consistent cash generation continue to draw comparisons with other cash-rich technology leaders such as Microsoft.