Apple reported $109.42 billion in revenue for its fiscal third quarter, with iPhone sales soaring almost 22% to $54.25 billion. Despite smashing expectations analysts predicted $108.65 billion the stock dropped over 6% after hours.
The main issue was Apple’s outlook. The tech giant now expects sales growth between 9% and 11%, down from previous optimism. The company pointed to supply constraints as the reason for the lowered forecast, even though its net income climbed to $29.79 billion from $23.43 billion a year ago.
On earnings per share, Apple reported $2.02, beating the $1.89 estimate, helped partly by tariff reimbursements. Mac sales surged too, jumping nearly 29% to $10.35 billion, well ahead of forecasts. Apple continues to lean heavily on iPhone and Mac sales to drive growth, with the iPhone 17 launch on the horizon.
