Apple (NASDAQ: AAPL) reported fiscal second-quarter results that slightly exceeded Wall Street expectations, with stronger-than-anticipated iPhone sales and signs of improving performance in China. However, a miss in the high-margin services segment weighed on investor sentiment, sending shares down about 3% in pre-market trading.
EPS came in at $1.65 on revenue of $95.36 billion, beating Wall Street forecasts of $1.63 and $94.22 billion, respectively.
iPhone revenue rose 1% year-over-year to $46.84 billion, above estimates of $45.84 billion, bolstered by a stabilization in Greater China, where sales declined just 2%—a notable improvement from the 11% drop reported in the same quarter a year earlier.
Apple’s services division, which includes platforms such as the App Store and Apple Pay, grew to $26.65 billion from $23.87 billion a year ago. However, the figure narrowly missed the $26.7 billion consensus estimate, highlighting some softness in what has become a key driver of the company’s profitability.
In the wearables and accessories segment, revenue reached $7.52 billion, trailing expectations of $7.85 billion. iPad sales reached $6.40 billion, ahead of the $6.07 billion forecast, while Mac sales slightly exceeded projections at $7.95 billion versus $7.92 billion.
Apple also announced a $100 billion stock buyback program and raised its quarterly dividend by 4% to $0.26 per share. While substantial, the repurchase plan came in $10 billion below the record buyback announced last quarter.
As of the latest update, Apple (NASDAQ: AAPL) stock is down 2.66%, trading at $207.65.
