Apple (Apple (AAPL)) just reported its fiscal third-quarter earnings, and the numbers are impressive. Revenue came in at $109.42 billion, beating the $108.65 billion analysts were expecting. Earnings per share hit $2.02, well above the $1.89 consensus. That's a 16% revenue jump and a 29% EPS climb year-over-year. CEO Tim Cook called it "our strongest June quarter ever."
But here's the thing: Apple stock, which was up about 22.5% year-to-date heading into the print, slipped 2.24% in after-hours trading to $325.98. That's the market's way of saying, "Great quarter, but what's next?"
Let's break down the numbers. Product revenue was $78.68 billion, up from $66.61 billion a year ago. Services revenue, the high-margin business Apple has been leaning into, hit $30.74 billion, up from $27.42 billion. The iPhone remains the star, with sales of $54.25 billion, compared to $44.58 billion last year. Mac revenue also grew nicely to $10.35 billion from $8.05 billion. iPad, however, slipped a bit to $6.19 billion from $6.58 billion. Wearables, Home, and Accessories came in at $7.88 billion, up from $7.40 billion.
Geographically, every region grew. Americas led with $45.78 billion, followed by Europe at $29.40 billion, Greater China at $18.82 billion, Japan at $6.55 billion, and the rest of Asia Pacific at $8.87 billion.
One of the most telling metrics: Apple's installed base of active devices hit another all-time high across all major product categories and geographic segments. That's a huge deal because it means more people are in the Apple ecosystem, which bodes well for future services revenue and upgrades.
Apple ended the quarter with $39.54 billion in cash and cash equivalents. The board declared a quarterly dividend of $0.27 per share, payable on Aug. 13 to shareholders of record as of Aug. 10.
Management will discuss the quarter on an earnings call at 5 p.m. ET. They typically provide commentary on how they expect different product lines to perform moving forward. Investors will be listening closely for any hints about iPhone demand, especially with the next-generation models expected later this year.
So why did the stock dip? It could be profit-taking after a strong run, or maybe some investors were hoping for even bigger numbers. But for a company that just delivered its best June quarter ever, Apple is looking pretty good.
