AAPL: Apple Stock Rises as CEO Tim Cook Praises “June Quarter Revenue Record”

Sales of the iPhone were way above estimates, showing that demand for the flagship product is still there.

📱 iPhone Sales Surge

• Apple stock AAPL moved higher by about 2% in extended trading Thursday after the tech titan crushed Wall Street estimates for iPhone and services revenue, notching a new June quarter record despite swirling macro headwinds, tariffs, and loud whispers about saturation.
• iPhone revenue soared to $44.6 billion, trouncing analyst estimates of $40.1 billion and posting the strongest growth in years, up over 13% year over year.
• Demand was lifted by US and Chinese consumers front-loading purchases ahead of expected tariff-driven price hikes.

💿 Services Revenue Hits All-Time High

• CEO Tim Cook said the quarter produced solid numbers in services revenue. “Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment.”
• Services brought in $27.4 billion, beating forecasts of $26.8 billion and setting a new all-time high for the category. The segment grew 13% year over year, reaffirming Apple’s shift toward recurring digital revenue.
• As hardware margins get squeezed, services remain Apple’s most profitable business, offering growth with less exposure to global supply chain drama.

💸 Earnings Beat, Tariffs Bite

• Overall revenue came in at $94 billion, up nearly 10% from the prior year and ahead of consensus. Earnings per share hit $1.57, blowing past the $1.43 Wall Street had penciled in.
• Cook noted tariff-related costs were $800 million, slightly below the $900 million expected — suggesting Apple’s margin resilience remains intact, even in a bumpy trade environment.
• Shares of Apple have been hit hard this year, largely due to fears that tariffs will eat into the company’s top-line and bottom-line growth. The stock’s down 15% year-to-date, ahead of the opening bell.