Apple Smashes Wall Street Earnings Estimates as Revenue Hits $109 Billion

Apple’s fiscal third-quarter earnings beat Wall Street expectations as revenue hit $109.4 billion and earnings reached $2.02 per share. Services slid down slightly from last quarter’s all-time revenue record with $30.70 billion, but still rose 12% from last year to reach a June quarter milestone. Apple shares slipped 3% in after-hours trading two days after the company’s market cap crossed the $5 trillion mark. Apple posted fiscal third-quarter earnings and revenue that beat Wall Street expectations as revenue hit $109.4 billion. The tech giant’s third-quarter revenue and earnings soared past analyst estimates, with revenue up from Wall Street’s estimate of $108.96 billion. Likewise, while analyst estimates put Apple’s earnings at $1.89 per share, the tech giant hit $2.02 per share this quarter. Overall, revenue was up 16% year-over-year and earnings per share rose 29% over last year. Net income was $29.8 billion, compared to $23.4 billion a year ago. Apple notably benefitted from tariff refunds, which led to a boost of two percentage points for company gross margin and $0.11 rise for earnings per share. “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,” Apple CEO Time Cook said in a statement. “At WWDC26, we were thrilled to introduce the all-new Siri AI, alongside all of Apple’s latest software innovations and important new child safety features.” Apple’s services, which includes Apple TV, Apple Music, iCloud, its App Store and more, saw a 12% rise with the quarter hitting $30.74 billion. It didn’t hit the all-time revenue record Apple hit last quarter for services with $30.98 billion, up more than 16% from a year ago. iPhone sales also soared 22% from last year with $54.3 billion in sales, with Cook touting the category “achieved June quarter records in every geographic segment and set a June quarter record for upgraders.” The tech giant is also preparing for a leadership transition as incoming CEO John Ternus takes the reins from Cook, with Ternus’ first day as CEO set for Sept. 1. More to come …