Apple Tops Earnings Estimates, But AAPL Shares Slide on Soft China Sales

Apple just dropped its fiscal third quarter results, beating Wall Street expectations on both revenue and earnings per share. The tech giant reported revenue of $109.42 billion against the expected $108.65 billion, with diluted earnings per share hitting $2.02. Strong hardware sales, especially from the Mac and iPhone divisions, powered the record June quarter. Net income climbed to $29.79 billion, showing solid annual growth across multiple categories.

Despite the strong headline figures, Apple shares slid over four percent in after hours trading. Investors quickly focused on a few soft spots in the report. Services revenue reached $30.74 billion, missing analyst forecasts, and Greater China revenue came in at $18.82 billion, which also fell short of expectations. Profit margins got a temporary boost from one time tariff refunds, adding about two percentage points to gross margins and lifting earnings per share slightly.

Traders are now shifting their attention to upcoming product cycles and leadership changes. Incoming CEO John Ternus takes the helm in September, just as the company faces rising competition in artificial intelligence. Market participants will watch the upcoming earnings call closely for details on supply chain conditions, pricing strategies, and artificial intelligence plans for the fall season.