Apple posted a record June quarter with revenue of $109.42 billion (+16% YoY) and EPS of $2.02, led by iPhone revenue of $54.25 billion (+22%) and Mac revenue of $10.35 billion (+29%), while gross margin hit 50.1% but was inflated by ~2 percentage points and $0.11 EPS from one‑time tariff refunds. Services grew 12% to $30.74 billion, missing estimates (~$31.2B), shares fell in after‑hours to about $317.66 as investors flagged the tariff boost and soft services growth, and the impending CEO transition makes guidance, sustainable adoption and even crypto app exposure key risks for market impact.

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In Brief

Apple posted record June quarter revenue of $109.4 billion, yet shares slipped.
Tariff refunds added $0.11 to EPS and roughly 2 points of margin.
Services grew 12% but landed under estimates, while Mac revenue jumped 29%.

Apple reported its strongest June quarter on record, topping Wall Street forecasts on both revenue and earnings. Shares still fell in extended trading on Thursday as investors picked apart the composition of the beat.

Services revenue and Greater China sales landed below analyst forecasts. A one-time tariff refund also flattered profitability, leaving traders to judge how much of the quarter reflects durable demand.

Apple Q3 Earnings Rest on iPhone and Mac Strength

Revenue reached $109.42 billion for the quarter ended June 27, up 16% year over year. Diluted earnings per share rose 29% to $2.02, ahead of the $1.89 consensus.

Mac produced the quarter’s biggest upside surprise. The segment generated $10.35 billion, roughly 29% above last year and well clear of forecasts near $8.7 billion.

iPhone revenue climbed 22% to $54.25 billion. Every geographic segment grew by double digits, and the installed base of active devices set a record.

“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,” Tim Cook, Apple CEO, in the company’s earnings release.

Tariff Refunds Cloud the Quality of the Beat

Gross margin reached 50.1%, but tariff refunds contributed about 2 percentage points of that figure and $0.11 of earnings per share. Strip those out and the beat narrows considerably.

Those refunds trace back to the Supreme Court tariff ruling in February, which struck down the White House’s global tariff regime. The benefit is unlikely to repeat at the same scale.

Services grew 12% to $30.74 billion, short of estimates near $31.2 billion. Apple pointed to foreign exchange headwinds as one factor. Greater China revenue rose 22% to $18.82 billion, though analysts had set a higher bar after recent share gains.

How Stock Traders Are Framing the Setup

Shares closed at $338.43 on Thursday, down 0.56%, then eased to roughly $317.66 after hours. Market value sits near $4.97 trillion, just under the $5 trillion market cap the stock touched earlier this week.

Apple (APPL) Stock Performance. Source: Yahoo Finance

That run created the problem. Apple gained about 15% in July and closed a week of megacap earnings that had already lifted expectations beyond a routine beat.

Some analysts had already flagged the valuation risk heading into the print, including warnings on Apple’s valuation from investor Dan Niles. The soft Services line gives that argument fresh support.

The report also marks Cook’s last as chief executive. John Ternus takes the role on September 1, adding a leadership variable to a September quarter that already carries memory supply constraints and recent hardware price increases.

Guidance from the earnings call now matters more than the headline numbers. Traders will watch whether management signals that Services growth reaccelerates, or whether this quarter marks the peak of the current cycle.

Read the article at BeInCrypto