Apple recorded its strongest June quarter ever, beating Wall Street expectations with strong growth across iPhones, Macs and Services. The company posted fiscal third-quarter revenue of $109.4 billion, up 16% year-on-year, while earnings per share came in at $2.02. Net income increased, highlighting Apple's strong consumer demand.
Revenue from iPhone sales rose 22% to $54.3 billion, recording the highest June-quarter. Apple said, “The iPhone 17 lineup attracted strong customer demand and delivered the highest number of June-quarter upgrades in the company's history. Mac revenue also surged 29%, supported by healthy sales of the latest MacBook models, while Services reached another quarterly record. However, iPad revenue declined during the quarter.”
Despite the financial success, investors focused on Apple's softer outlook for the current quarter. The tech giant expects revenue growth of 9% to 11% in the September quarter. This is lower than the expected market growth of around 12%.
Apple says that its cautious outlook is based on supply constraints, not slowing demand. This downbeat outlook has led to a drop in Apple's stock price in after-hours trading.
The earnings call also marked Tim Cook's final quarterly results presentation as Apple's CEO. After nearly 15 years leading the company, Cook will hand over the role to hardware chief John Ternus while transitioning to Executive Chairman.
Cook leaves behind a record June quarter, but his successor inherits mounting challenges, including rising component costs, supply-chain disruptions and the need to sustain Apple's AI ambitions while maintaining profitability.