Apple reported stronger-than-expected results for the July-to-September fiscal third quarter, giving new CEO John Ternus a positive start to his tenure, which began in September. The performance contrasted with disappointing quarterly results from other major technology companies, including Alphabet, Amazon and Intel.
The company earned $30.71 billion, or $2.10 per share, up from $27.47 billion, or $1.85 per share, a year earlier. Apple said earnings included five cents per share from tariff refunds. Revenue rose 12% to $114.5 billion from $102.5 billion.
Analysts surveyed by FactSet had expected earnings of $1.99 per share and revenue of $113.4 billion.
Emarketer analyst Jacob Bourne said Apple’s results came amid a recent technology-sector sell-off, as investors weighed the cost and uncertain returns of AI investments by other major companies. He pointed to record iPhone revenue and strong growth in China as signs of resilience in Apple’s business.
Bourne also said Apple’s comparatively modest spending on AI infrastructure could help preserve its cash flow. Partnerships with companies such as Alphabet may allow Apple to develop its AI capabilities without taking on the same financial risks as competitors, he added.
Sources: The Guardian Business.