Apple reported fiscal third-quarter iPhone revenue of $54.3 billion, a 22% year-over-year increase that beat the $53.86 billion consensus, but shares fell as services revenue and China sales came in below expectations. Total revenue rose 16% to $109.42 billion, while earnings per share climbed 29% to $2.02, or an adjusted $1.89 excluding a tariff rebate boost, topping analyst estimates of $1.89 per share on $108.65 billion in sales. Services revenue grew 12% to $30.74 billion, missing the $31.22 billion forecast, and China revenue increased 22% to $18.82 billion but fell short of the $19.58 billion estimate. For the fiscal fourth quarter, Apple guided for revenue growth of 9% to 11% and gross margin between 47% and 48%, while noting currency headwinds and supply constraints. The stock trades at a forward price-to-earnings ratio of about 34.5 times based on fiscal 2027 estimates.
Apple Inc.Services and China revenue missed estimates, overshadowing strong iPhone sales and EPS beat.