Apple (NASDAQ:AAPL) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• Apple beat quarterly expectations, reporting EPS of $2.02 versus the $1.88 consensus and revenue of $109.42 billion versus $109.04 billion. Revenue rose 16.4% year over year, led by record iPhone, Mac and Services sales.
• Apple’s installed base reached a record more than 2.5 billion active devices, while paid subscriptions surpassed 1.5 billion, underscoring continued ecosystem strength and customer adoption.
• Management expects growth to moderate to 9%–11% next quarter as foreign-exchange headwinds, semiconductor supply constraints and rising memory costs pressure sales and margins. Apple also faces leadership-transition uncertainty as John Ternus prepares to succeed Tim Cook as CEO.

Apple (NASDAQ:AAPL - Get Free Report) released its quarterly earnings results on Thursday. The iPhone maker reported $2.02 earnings per share for the quarter, beating analysts' consensus estimates of $1.88 by $0.14, FiscalAI reports. The business had revenue of $109.42 billion for the quarter, compared to the consensus estimate of $109.04 billion. Apple had a net margin of 27.15% and a return on equity of 146.69%. Apple's revenue for the quarter was up 16.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.57 EPS.

Here are the key takeaways from Apple's conference call:

• Revenue reached a June-quarter record of $109.4 billion, up 16% year over year, with double-digit growth across all geographic segments. iPhone revenue rose 22% to $54.3 billion, Mac revenue increased 29% to a record $10.4 billion, and Services grew 12% to $30.7 billion.
• Apple reported strong customer adoption, including an all-time-high installed base of more than 2.5 billion active devices and over 1.5 billion paid subscriptions. The company also said it gained global share in both iPhone and Mac, while emerging markets delivered particularly strong growth.
• Apple expects September-quarter revenue growth to slow to 9%–11%, citing a roughly 2.5-percentage-point foreign-exchange headwind and significantly worsening supply constraints affecting iPhone, Mac, and iPad. The constraints are primarily tied to limited availability of advanced semiconductor manufacturing nodes amid demand that exceeded forecasts.
• Rising memory costs are putting pressure on profitability, with Apple expecting to pay even higher memory prices in the September quarter and beyond. Management said memory costs were the primary driver of the sequential decline in adjusted gross margin, while recent price increases were implemented reluctantly to offset the unprecedented cost inflation.
• Management expressed strong enthusiasm for Apple Intelligence and the upcoming Siri AI, emphasizing private, personalized, and on-device capabilities that could support future product demand and new iCloud+ upgrades. Apple also announced a U.S. manufacturing agreement with Broadcom expected to exceed $30 billion and confirmed John Ternus will succeed Tim Cook as CEO after this call.

Apple Stock Performance

NASDAQ AAPL traded down $4.76 during midday trading on Thursday, hitting $333.43. The company had a trading volume of 72,210,597 shares, compared to its average volume of 50,546,977. The firm has a fifty day simple moving average of $309.51 and a two-hundred day simple moving average of $281.25. Apple has a fifty-two week low of $201.50 and a fifty-two week high of $344.57. The company has a quick ratio of 1.02, a current ratio of 1.07 and a debt-to-equity ratio of 0.70. The stock has a market cap of $4.90 trillion, a price-to-earnings ratio of 40.32, a P/E/G ratio of 2.94 and a beta of 1.10.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AAPL. Wedbush reiterated an "outperform" rating and set a $400.00 price target on shares of Apple in a research note on Friday, June 5th. Barclays reaffirmed an "underweight" rating on shares of Apple in a research report on Tuesday, June 9th. Bank of America reissued a "buy" rating and issued a $380.00 price target on shares of Apple in a research report on Thursday, June 18th. TD Cowen lifted their target price on shares of Apple from $335.00 to $350.00 and gave the stock a "buy" rating in a report on Tuesday, June 9th. Finally, HSBC raised shares of Apple from a "hold" rating to a "buy" rating and boosted their target price for the stock from $260.00 to $366.00 in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Apple presently has an average rating of "Moderate Buy" and a consensus price target of $327.40.

Trending Headlines about Apple

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple reported record June-quarter revenue of approximately $109.4 billion, up 16% year over year, while diluted EPS of $2.02 rose 29% and exceeded Wall Street expectations. Strong iPhone and Mac sales drove the results. Apple reports third quarter results
• Positive Sentiment: The company said its active installed base reached an all-time high, and iPhone, Mac and Services each posted June-quarter revenue records. Apple also declared a quarterly dividend of $0.27 per share. Apple Q3 revenue rises
• Neutral Sentiment: Apple indicated that a revamped Siri could eventually become a paid service for heavy users, offering a potential long-term monetization opportunity as the company expands its consumer-AI strategy. Tim Cook says Apple may charge for AI Siri
• Neutral Sentiment: Thursday marked Tim Cook’s final earnings call as CEO before he steps down in September, adding leadership-transition uncertainty despite incoming CEO John Ternus’s expected continuity.
• Negative Sentiment: Apple’s fiscal fourth-quarter revenue outlook of $111.7 billion to $113.7 billion was below the roughly $114.3 billion consensus estimate. The cautious forecast is a key reason the stock has decreased despite the quarterly beat.
• Negative Sentiment: The generative-AI hardware boom is driving severe memory and component shortages. Apple is stockpiling inventory, but CEO Tim Cook warned that the impact of higher memory prices will worsen, pressuring product margins and potentially requiring further price increases. The quarter’s 50.1% gross margin benefited by about two percentage points from tariff refunds, a benefit that may not recur. Apple stockpiles inventory
• Negative Sentiment: Services revenue missed expectations, with Apple citing a slowdown in gaming and the effects of App Store changes. Weaker-than-expected China performance also raised concerns about regional demand and competition.
• Negative Sentiment: With Apple valued near $5 trillion and trading at roughly 40 times earnings, investors had set very high expectations. That premium leaves less room for disappointment in growth, margins or guidance. Apple forecasts slower growth

Insider Buying and Selling at Apple

In related news, insider Ben Borders sold 116 shares of Apple stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $295.14, for a total transaction of $34,236.24. Following the sale, the insider directly owned 38,713 shares of the company's stock, valued at $11,425,754.82. This trade represents a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.06% of the company's stock.

Institutional Trading of Apple

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in shares of Apple by 0.4% in the 1st quarter. Vanguard Group Inc. now owns 1,400,790,809 shares of the iPhone maker's stock valued at $311,157,662,000 after buying an additional 5,005,297 shares in the last quarter. State Street Corp increased its stake in Apple by 1.1% in the fourth quarter. State Street Corp now owns 604,056,505 shares of the iPhone maker's stock valued at $164,218,801,000 after acquiring an additional 6,555,392 shares during the period. Geode Capital Management LLC raised its position in Apple by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 358,032,517 shares of the iPhone maker's stock worth $97,031,587,000 after purchasing an additional 1,866,103 shares in the last quarter. Morgan Stanley raised its position in Apple by 0.6% in the fourth quarter. Morgan Stanley now owns 230,483,035 shares of the iPhone maker's stock worth $62,659,118,000 after purchasing an additional 1,379,651 shares in the last quarter. Finally, Norges Bank bought a new position in Apple during the fourth quarter worth about $52,266,468,000. Institutional investors and hedge funds own 67.73% of the company's stock.

Apple Company Profile

Apple Inc NASDAQ: AAPL is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple's principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.