Apple Reports Strong Fourth Quarter Revenue Under New CEO

Apple Inc. posted stronger-than-expected revenue in the fiscal fourth quarter, giving new CEO John Ternus a positive start to his tenure after he took over in September. The company earned $30.71 billion, or $2.10 per share, in the July-September period, which is up 12% from $27.47 billion, or $1.85 per share, a year earlier. Apple stated that these earnings included 5 cents per share from tariff refunds. Total revenue rose 12% to reach $114.5 billion, compared to $102.5 billion in the same period last year. These figures beat average analyst expectations compiled by FactSet, which had predicted earnings of $1.99 per share on revenue of $113.4 billion.

Market Impact

The solid financial report bucked a downward trend for major technology companies this quarter, as firms like Alphabet, Amazon, and Intel reported disappointing results. Apple recently raised its prices because of a global memory chip shortage driven by the artificial intelligence boom. The iPhone 18 now costs about $100 more than earlier generations, and the prices for Macs and iPads also went up in June. Emarketer analyst Jacob Bourne noted that Apple's strong earnings arrive after a tech sell-off caused by investor questions over high AI spending costs. Bourne added that record iPhone revenue and strong growth in China show the business is strong, while Apple's cautious approach to AI spending helps protect its cash flow. Meanwhile, Apple's first foldable phone, the iPhone Duo, was not included in these earnings because it went on sale in October starting at $1,999. Apple is currently handling strong demand, some user reports of cracked screens, and supply constraints that push current shipping dates to January. Apple shares were flat in after-hours trading after closing down 1.8% at $338.32 in regular trading.

Context

Apple is one of the world's largest technology companies, known for designing and selling consumer electronics, software, and services. Earnings reports like this one are released every three months to show investors how much money the business is making and spending. Major tech firms often face intense market scrutiny over how their spending on new technologies like artificial intelligence affects their overall financial health.