Apple posts stronger-than-expected revenue in first earnings report for new CEO John Ternus
Apple Inc posted stronger-than-expected revenue in the fiscal third quarter, giving new CEO John Ternus an upbeat start to his tenure, which began in September.
The solid results contrast with disappointing quarterly results from other tech giants including Alphabet, Amazon and Intel. Apple earned $30.71bn, or $2.10 a share, in the July-September period, up 12% from $27.47bn, or $1.85 a share, in the same period a year earlier. Revenue rose 12% to $114.5bn from $102.5bn.
Analysts were expecting earnings of $1.99 a share on revenue of $113.4bn, according to a poll by FactSet. Apple said its earnings included five cents a share from tariff refunds.
AI spending strategy
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.
While rivals face investor uncertainty over huge AI investments, Apple's 'tepid approach' to AI infrastructure spending helps preserve its cash flow. Partnerships with companies such as Alphabet could help Apple strengthen its AI capabilities without taking on the same financial risks as its peers.
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