Apple closed its June quarter with a staggering $109.4 billion in revenue, marking the company’s best performance for that period yet the stock dropped roughly 4% in after-hours trading. This earnings release was the last under CEO Tim Cook, who plans to step down by September 1, handing the reins to hardware chief John Ternus.
Strong Hardware Sales Drive Revenue Gains
The quarter showed solid growth led by iPhone sales, which surged nearly 22% to $54.3 billion a new high for the June quarter. Mac computers also posted a 29% increase, generating $10.4 billion in revenue. Meanwhile, the Services segment hit a record $30.7 billion, up 12%, although it fell short of some market expectations. Wearables, Home, and Accessories revenues climbed 6%, reaching $7.9 billion, helping balance out a 6% decline in iPad sales to $6.2 billion.
Global Growth and Margin Details
Geographically, Apple saw gains everywhere. Greater China’s revenue jumped over 22% to $18.8 billion, while Europe increased from $24 billion to $29.4 billion. The gross margin settled at 50.1%, bolstered by tariff refunds that contributed around two percentage points and added $0.11 per share to earnings.
Despite these impressive figures, investor sentiment was mixed. The weaker-than-expected performance in Services and iPad units combined with reliance on tariff refunds to boost profits seemed to trigger concern. This partly explains the share drop despite the record quarterly income of $29.8 billion up from $23.4 billion the year before and diluted earnings per share soaring 29% to $2.02.
This final report caps Tim Cook’s 15-year tenure, setting a high bar for John Ternus as he steps up as CEO in September.
This article is for informational purposes and does not constitute financial advice.
