Apple Posts Record Q3 Earnings with 13% Revenue Growth

Apple Inc. reported a record FQ3 with a 10% increase in revenue and a 12% growth in profits. The company's revenue reached a new high, driven by strong sales of iPhones, Macs, and services. Despite some concerns over the tech industry's outlook, Apple's financial performance suggests it remains a leader in the market.

Apple Inc. (NASDAQ:AAPL) has reported a strong fiscal third quarter (FQ3) with a 10% increase in revenue and a 12% growth in profits. The company's revenue reached a new high of $94.0 billion, driven by robust sales of iPhones, Macs, and services. Despite some concerns over the tech industry's outlook, Apple's financial performance underscores its position as a market leader.

In the FQ3, Apple reported quarterly diluted earnings per share (EPS) of $1.57, up 12% year-over-year. This growth was fueled by double-digit growth in iPhone, Mac, and Services segments across all geographic regions. The installed base of active devices reached a new all-time high, reflecting high customer satisfaction and loyalty [2].

Key highlights from the earnings report include:
- iPhone Sales: iPhone sales surged to $44.6 billion, up 13% year-over-year, driven by strong consumer demand for Apple's flagship product.
- Services Segment: The Services division, which includes iCloud, Apple Music, and the App Store, saw revenue jump 13% to $27.4 billion.
- Mac Sales: Mac sales grew to $8.0 billion from $7.0 billion, indicating a robust demand for Apple's computing products.
- Regional Growth: Solid growth was reported across all markets, including Americas ($41.2 billion), Europe ($24.0 billion), Greater China ($15.4 billion), Japan ($5.8 billion), and Rest of Asia Pacific ($7.7 billion).

Apple's gross margin expanded to $43.7 billion, and operating income stood at $28.2 billion, reflecting strong profitability. The company ended the quarter with $36.3 billion in cash and cash equivalents, up from $29.9 billion at the beginning of the period. Apple returned significant capital to shareholders through $11.6 billion in dividends and $70.6 billion in share buybacks during the nine-month period [2].

Executives noted that the installed base of active devices reached an all-time high across all product categories. The company's focus on artificial intelligence (AI) and its expanding services ecosystem are expected to drive significant future growth [1].

References:
[1] https://site.financialmodelingprep.com/market-news/apple-inc-strong-growth-upgraded-buy
[2] https://www.ainvest.com/news/apple-q3-earnings-record-eps-revenue-active-devices-2508/