Apple says quarterly earnings included 5 cents per share from tariff refunds
Apple Inc. reported stronger-than-expected fiscal fourth-quarter revenue on November 2, following John Ternus’s start as CEO in September. The Cupertino, California-based company generated $114.5 billion in revenue and earned $30.71 billion, or $2.10 per share, in the July-September period.
Analysts, on average, expected $1.99 per share on $113.4 billion in revenue, according to a FactSet poll. Apple’s $2.10 per-share result and $114.5 billion in revenue both exceeded the averages in that poll.
Revenue increased 12% from $102.5 billion in the same quarter a year earlier. Earnings also rose 12%, reaching $30.71 billion compared with $27.47 billion, while per-share earnings increased to $2.10 from $1.85. Apple said its earnings included 5 cents per share from tariff refunds.
Apple’s stronger showing bucked a downward trend for tech giants this quarter. Alphabet, Amazon and Intel were among the companies with disappointing quarterly results.
Emarketer analyst Jacob Bourne placed Apple’s performance in the context of recent market concerns. “Apple’s strong earnings come in the wake of a recent tech sell-off, as investors question the enormous cost and uncertain returns of the AI boom driven by Apple’s Big Tech counterparts,” Bourne said.
Bourne also said record iPhone revenue and strong growth in China demonstrated the resilience of Apple’s business. In Bourne’s assessment, Apple’s operating performance contrasted with the investor uncertainty surrounding massive artificial-intelligence investments by Big Tech rivals.
Bourne said Apple’s “tepid approach” to AI infrastructure spending helps preserve its cash flow. He contrasted that approach with the investor uncertainty facing rivals over massive artificial-intelligence investments.
Partnerships with companies like Alphabet could help Apple strengthen its AI capabilities without taking on the same financial risks as its peers, Bourne said. Bourne said Apple’s strong earnings came in the wake of that tech sell-off, as investors questioned the enormous cost and uncertain returns of the AI boom driven by Apple’s Big Tech counterparts.
Apple shares were flat in after-hours trading. The stock had closed down 1.8% at $338.32 in regular trading.
The November 2 report followed John Ternus’s September start as CEO, with stronger-than-expected revenue and 12% growth in both revenue and earnings. Bourne said record iPhone revenue and strong growth in China demonstrated the resilience of Apple’s business. Apple’s shares ended regular trading lower.