Apple stock (NASDAQ: AAPL) fell about 6% in after-hours trading on Thursday after the iPhone maker forecast slower-than-expected revenue growth for the current quarter, overshadowing fiscal third-quarter results that topped Wall Street estimates, driven by stronger iPhone and Mac sales.
The technology company reported revenue of $109.42 billion for the quarter ended June, up 16.4% from a year earlier and above analysts’ consensus estimate of $108.65 billion.
Diluted earnings per share (EPS) came in at $2.02, exceeding the consensus forecast of $1.89. The quarterly outperformance was driven by stronger hardware demand, particularly for iPhones and Macs, while tariff refunds added an estimated $0.11 per share to reported earnings.
However, investors shifted their attention to Apple’s forward guidance, sending the stock lower despite the stronger-than-expected quarter.
Revenue Outlook Weighs on Apple Stock
Apple said it expects September-quarter revenue to increase 9% to 11% from a year earlier, below analysts’ expectation of roughly 12% growth. The company also forecast iPhone revenue growth in the mid-teens, compared with Wall Street projections of about 17.6%, prompting concerns that sales momentum could moderate in the coming months.
During the earnings call, Chief Executive Officer Tim Cook said supply constraints in advanced chip manufacturing remain “very significant” and are expected to affect iPhone, Mac and iPad in the September quarter. The shortages are likely to affect Mac and iPad availability and constrain iPhone shipments.
Chief Financial Officer Kevan Parekh added that foreign exchange headwinds were factored into the company’s revenue outlook, while higher memory costs weighed on its gross-margin outlook.
Apple forecast a September-quarter gross margin of 47% to 48%, including approximately one percentage point of benefit from tariff refunds, implying a midpoint of about 46.5% excluding the refunds, compared with 48.1% in the June quarter.
iPhone and Mac Sales Drive Quarterly Outperformance
Apple’s flagship iPhone business remained the largest contributor to revenue growth, generating a record $54.25 billion in sales during the June quarter and outperforming analyst expectations. Mac revenue climbed 28.7% year over year to $10.35 billion, also exceeding forecasts as demand for the company’s computer lineup strengthened.
Services revenue reached a record $30.74 billion, although it fell short of Wall Street estimates. Revenue from the iPad business declined 5.9% from a year earlier, while the Wearables, Home and Accessories segment generated $7.88 billion in revenue.
Geographically, revenue from Greater China increased 22.4% compared with the same period last year. Despite the double-digit growth, the regional performance was slightly below analysts’ expectations.
Margins Beat Expectations
Apple reported a gross margin of 48.1%, excluding tariff-related refunds, surpassing analyst forecasts.
Cook described the quarter ended in June as Apple’s strongest June-ended quarter on record, citing double-digit growth across multiple product categories and geographic markets.
Evercore Maintains Positive View Despite Selloff
Following the earnings release, Evercore ISI reiterated its “Outperform” rating on Apple stock and maintained its $365 price target.
Apple Declares Quarterly Dividend
Separately, Apple’s board declared a quarterly cash dividend of $0.27 per share, equivalent to an annualized payout of $1.08 per share and a dividend yield of approximately 0.3%. The dividend will be paid on Aug. 13, 2026, to shareholders of record as of Aug. 10, 2026.
In the latest after-hours snapshot, Apple stock (NASDAQ: AAPL) was trading at $311.25, down 6.65%.
