Apple reports biggest revenue growth since December 2021

Apple reported third-quarter net connected Thursday that topped Wall Street expectations for nett and revenue.

iPhone income grew 13% year-over-year and wide gross grew 10% — Apple's largest quarterly gross maturation since December 2021.

Apple shares roseate successful after-hours trading connected Thursday and took a limb higher aft Apple provided information points astir the company's show successful the September quarter.

Here's however Apple did versus statement estimates for the 4th ending June 28:

• Earnings per share: $1.57 vs. $1.43 expected
• Revenue: $94.04 cardinal vs. $89.53 cardinal expected

• iPhone revenue: $44.58 cardinal vs. $40.22 cardinal expected
• Mac revenue: $8.05 cardinal vs. $7.26 cardinal expected
• iPad revenue: $6.58 cardinal vs. $7.24 cardinal expected
• Other Products revenue: $7.40 cardinal vs. $7.82 cardinal expected
• Services revenue: $27.42 cardinal vs. $26.80 cardinal expected
• Gross margin: 46.5% vs. 45.9% expected

The institution provided what it calls colour astir the company's show during the September 4th truthful acold connected a telephone with analysts connected Thursday. Apple said that it expects mid-to-high azygous digit increases successful wide revenue, services maturation to beryllium akin to this quarter's 13% year-over-year growth, and for gross borderline to beryllium betwixt 46% and 47%, adjacent including costs related to tariffs.

Apple incurred $800 cardinal successful tariff costs successful the June quarter, Apple CEO Tim Cook said connected the call. That came successful little than the $900 cardinal estimation the institution provided successful May. For the September quarter, assuming nary changes, Apple could incur astir $1.1 cardinal successful tariff costs, Cook said.

The institution reported $1.57 successful net per stock oregon $24.43 cardinal of nett income during the quarter, versus $1.40 per stock oregon $21.45 cardinal successful the year-ago period.

"It was an exceptional 4th by immoderate measure," Cook told CNBC's Steve Kovach.

Cook said that astir 1 of the company's 10 percent points of gross maturation could beryllium attributed to customers buying much products to get up of imaginable tariffs.

The company's astir important concern remains the iPhone, which saw 13% maturation connected an yearly ground during the 4th to $44.58 cardinal successful sales.

Cook said that iPhone gross was beardown due to the fact that the iPhone 16 is much fashionable compared to the iPhone 15 devices connected merchantability past twelvemonth astatine the aforesaid time. Cook said iPhone 16 income were up "strong treble digits" versus its predecessor. Cook specifically highlighted popularity among existent iPhone users upgrading to a caller one.

Apple's Mac concern grew the fastest of immoderate of Apple's units during the June quarter, increasing astir 15% to $8.05 cardinal successful revenue. Apple released updated MacBook Air laptops, its best-selling Mac, conscionable earlier the 4th started.

The company's services business, which includes Apple's warranties, contented subscriptions, licensing deals with Google, and iCloud continued to turn to $27.42 cardinal successful the period, a 13% increase. Cook highlighted maturation successful the company's iCloud subscriptions and said App Store gross grew "double digits" during the quarter.

The 2 tougher spots successful Apple's study were iPad income and the company's different products division, which it sometimes calls its wearables. It consists of Apple Watch, AirPods, and different accessories. Revenue for iPad was down 8% to $6.58 billion, contempt the institution launching a low-cost iPad successful March. Apple's wearables portion declined 8.64% to $7.4 cardinal during the quarter.

Apple besides saw occurrence successful China during the quarter, with income rising 4% connected an yearly ground to $15.37 billion. Apple reports its income from China, Hong Kong and Taiwan successful the aforesaid unit. It's a reversal from the past 2 quarters, wherever Apple's China income declined 2% successful Apple's 2nd fiscal 4th and 11% successful the archetypal quarter.

Cook said a Chinese subsidy for immoderate devices helped Apple successful the region.

"The subsidy does use to immoderate of our products, and it intelligibly helps," Cook said.

In June, Apple held its yearly Worldwide Developers Conference, oregon WWDC, wherever it unveiled caller bundle for iPhones, Macs and different devices, but the company's artificial quality announcements astatine the lawsuit underwhelmed investors.

Cook said that Apple views AI arsenic "one of the astir profound technologies of our lifetime."

"We are importantly increasing our investments," Cook said astir AI. "We're embedding it crossed our devices, crossed our platforms and crossed the company."

Cook said that Apple had acquired "around" 7 companies truthful acold this twelvemonth though nary had been "huge successful presumption of dollar amount."

"We're unfastened to M&A that accelerates our roadmap," Cook said. Apple had astir $133 cardinal successful currency connected manus astatine the extremity of the June quarter.

Asked astir the imaginable for AI devices similar those being developed by OpenAI to threaten income of the iPhone, Cook said that helium believed they were apt to beryllium complements to the iPhone, not replacements.

"It's hard to spot a satellite wherever iPhone is not surviving successful it," Cook told analysts connected the net call.

WATCH: Apple returns to maturation successful China