Apple beats Q3 forecasts but shares fall on weak segments

Apple beats Q3 forecasts with $109.42B revenue and strong device sales, but shares fall 4% after-hours on weak Services and China performance.

Apple surpassed Wall Street expectations in its third fiscal quarter, posting revenue of $109.42 billion and earnings per share of $2.02. Both figures exceeded analyst forecasts. Strong iPhone and Mac sales, up nearly 22% and 29% respectively, drove net income to $29.79 billion. Despite these results, Apple’s stock declined over 4% in after-hours trading. Investors expressed concern over weaker-than-expected revenue in the Services and China segments, which, while growing year-over-year, still missed projections. Looking ahead, Apple forecasts only 9% to 11% growth next quarter due to supply constraints, further weighing on investor sentiment. Although Services revenue rose 12% and gross margin stayed above 50%, the market remains cautious about potential ongoing weakness in key segments.