Apple stock falls as supply warning overshadows record quarter

Apple (NASDAQ: AAPL) brought in $109.42 billion during its fiscal third quarter, yet the stock dropped more than 6% after regular trading ended. Traders focused on the company’s softer forecast for the current period, where sales are expected to rise by only 9% to 11%.

Apple blamed tight supplies for the weaker view. The reaction came even though quarterly revenue beat the $108.65 billion expected by analysts tracked by London Stock Exchange Group (LON: LSEG).

Profit came in ahead of analysts’ expectations as well. Apple posted $2.02 in earnings per share, higher than the expectation of $1.89. This is not a like-for-like comparison, however, since tariff reimbursements boosted EPS by 11 cents.

Apple’s net income reached $29.79 billion, up from $23.43 billion one year earlier. On a per-share basis, last year’s result was $1.57. Apple’s total revenue rose by more than 15% for the third quarter in a row, while cash holdings stood at $146.52 billion.

Apple gets most of its growth from iPhone and Mac sales

The iPhone business produced $54.25 billion, ahead of the $53.86 billion analysts had expected. Sales from the phone line climbed close to 22% from the same quarter last year. That increase came late in the iPhone 17 sales cycle, with another hardware release expected in September.

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