TLDR
- Apple shares fell 4% after hours despite record June quarter revenue and higher earnings today.
- Tim Cook delivered his final earnings report before stepping down as Apple CEO in September.
- Apple posted $109.4B revenue, while net income rose to $29.8B during the latest quarter period.
- iPhone revenue climbed nearly 22% to $54.3B, setting a June quarter record for Apple sales.
- Services revenue hit $30.7B, while iPad revenue fell nearly 6% to $6.2B this quarter alone.
Apple stock fell around 4% in after-hours trading after Tim Cook delivered his final earnings report as chief executive, even as the company posted record June quarter revenue and earnings.
Apple Reports Record June Quarter Revenue
Apple reported quarterly revenue of $109.4 billion, up 16% from $94 billion a year earlier. The result marked the company’s strongest June quarter and came before a planned leadership change in September.
Net income rose to $29.8 billion from $23.4 billion in the same period last year. Diluted earnings per share increased 29% to $2.02, supported by higher revenue and stronger margins.
Apple recorded a gross margin of 50.1% during the quarter. Tariff refunds added about two percentage points to gross margin and lifted earnings by $0.11 per share.
The after-hours decline followed investor focus on the quality of the earnings increase. Some market attention turned to tariff refunds and weaker results in certain business lines.
iPhone and Mac Sales Lead Growth
iPhone revenue rose nearly 22% to $54.3 billion, setting a June quarter record for the product line. The iPhone remained Apple’s largest revenue source during the period.
Mac revenue increased 29% to $10.4 billion. The result added another growth driver as Apple continued selling newer devices across its computer lineup.
Services revenue climbed 12% to a record $30.7 billion. The unit includes subscriptions, cloud services, payment services, app-related revenue, and other recurring business lines.
However, Services growth came below some expectations. That weaker reading contributed to the after-hours pressure despite the segment reaching another revenue record.
iPad revenue declined nearly 6% to $6.2 billion. Wearables, Home and Accessories revenue rose about 6% to $7.9 billion during the quarter.
China and Europe Add to Regional Growth
Apple reported growth across every geographic segment. Greater China revenue rose more than 22% to $18.8 billion, showing stronger sales in a key market.
Europe revenue increased to $29.4 billion from $24 billion a year earlier. The region remained one of Apple’s largest markets during the quarter.
The company’s results also showed continued demand across hardware and services. However, the stock reaction showed investors were watching margins, Services growth, and iPad weakness closely.
Cook is scheduled to step down as CEO on September 1 after 15 years in the role. Apple hardware chief John Ternus will become chief executive after the transition.
Cook will move to executive chairman once Ternus takes over. The leadership shift will place Apple’s next phase under a hardware executive during a period of product, services, and margin pressure.
The quarter gave Cook a record final earnings report as CEO. Apple now enters the transition period with rising revenue, higher earnings, and investor attention fixed on future growth drivers.
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