Apple’s Earnings Per Share (EPS) stood at $1.57, also higher than the $1.43 that analysts were working with.
Revenue from Apple’s iPhone rose to $44.58 billion at the end of the third quarter, higher than the analyst estimate of $40.22 billion.
For the final quarter of Apple’s fiscal year, the iPhone maker expects mid-to-high-single-digit revenue growth and services to grow at a similar 13% rate as the quarter gone by. Gross margins, including tariff-related costs, are likely to be between 46% and 47%.Apple had warned of a $900 million hit in the most recent quarter due to tariffs during its May results. That figure stood at $800 million. Assuming no changes, the hit during the ongoing quarter is likely to be $1.1 billion, according to Apple CEO Tim Cook.
Cook attributed 1 out of the 10% growth that Apple’s topline saw to customers buying more products to get ahead of potential tariffs. iPhone sales were strong as the 16 version is turning out to be more popular than 15, which was on sale last year at the same time. The 16 version saw strong double-digit growth over its predecessor, Cook said.
After declining in the first two quarters, Apple’s sales in China reversed in the third quarter, registering a 4% growth. The company reports sales from China, Hong Kong and Taiwan in the same unit. A Chinese subsidy from some devices contributed to the growth in the region, according to Cook.
“We’re open to M&A that accelerates our roadmap,” Cook said. Apple had about $133 billion in cash on hand at the end of the June quarter. Apple acquired seven companies during the year so far but none major in US Dollar terms.
The stock, which is down 15% on a year-to-date basis, rose 2% in extended trading.
