Apple tops estimates in CEO Cook’s final quarter, but shares fall
AFP
Fri, July 31, 2026 at 4:08 AM GMT+5:30
3 min read
- AAPL
-1.41%
Apple beat market expectations in its latest results on Thursday, capping Tim Cook’s final earnings report as CEO with a strong showing, although the outlook for the current quarter disappointed investors
The Cupertino-based tech giant’s results were powered by robust iPhone demand, a sharp rebound in China and double-digit growth in every region where it operates
Sales rose 16 percent to $109.4 billion in the <a href="https://todaytrendnews7.com/japan-to-cut-consumption-tax-on-food-to-1-from-april-2027-pm/” title=”Japan to cut consumption tax on food to 1% from April 2027: PM”>April-through-June period, while profit climbed 27 percent to $29.8 billion
The company’s performance was boosted by refunds of tariffs imposed last year by Donald Trump and overturned by the US Supreme Court in February
Its iPhone sales jumped 22 percent to $54.3 billion as customers kept upgrading to the latest models, while Mac revenue climbed 29 percent, with higher prices doing little to dampen demand
Apple’s services business — which spans the App Store, iCloud, Apple Music and advertising — grew 12 percent to $30.7 billion, slightly below analyst expectations
Souring the picture, Apple forecast revenue growth of between nine and 11 percent in the current quarter, below estimates, citing supply constraints.
Cook told analysts the constraints stemmed from unexpectedly strong demand for the iPhone and Mac
The guidance sent Apple shares down by as much as eight percent in after-hours trading
“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” Cook said in a statement
The earnings announcement was expected to be the last for Cook as chief executive
John Ternus, who attended the post earnings analysts call with Cook, will take over as Apple chief executive on September 1, with Cook becoming executive chairman of the iPhone maker’s board
Cook has led the company since 2011, taking over shortly before the death of co-founder Steve Jobs
Long criticized for falling behind in the AI race, Apple is now being rewarded by Wall Street for resisting the vast investments its big tech rivals have poured into chips and data centers
Apple touched a $5 trillion market value this week, while some rivals have seen their shares punished as investors question the profitability of their huge AI bets.
Meta’s shares sank about nine percent Thursday after this week’s results stoked alarm over its spending
Microsoft, by contrast, rose sharply after signaling its AI bets were starting to pay off
The major concern for Apple’s business is rising prices for memory chips, a key component for electronics
