Apple posts stronger-than-expected revenue in first earnings report for new CEO John Ternus

Result for the company, which earned $30.71bn and exceeded analysts’ expectations, bucked downward trend for tech firms

Apple Inc posted stronger-than-expected revenue in the fiscal third quarter, giving John Ternus, the new CEO, an upbeat start to his tenure, which began in September. The solid results bucked a downward trend for tech giants this quarter, as companies including Alphabet, Amazon and Intel had disappointing quarterly results.

“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,” said Jacob Bourne, an Emarketer analyst, adding that record iPhone revenue and strong growth in China demonstrate the resilience of Apple’s business.

The Cupertino, California-based company earned $30.71bn, or $2.10 a share, in the July-September period. That’s up 12% from $27.47bn, or $1.85 a share, in the same period a year earlier. Apple said its earnings included five cents a share from tariff refunds.

Revenue rose 12% to $114.5bn from $102.5bn.

Analysts, on average, were expecting earnings of $1.99 a share on revenue of $113.4bn, according to a poll by FactSet.

While its rivals are facing investor uncertainty over huge investments in artificial intelligence, Bourne said Apple’s “tepid approach” to AI infrastructure spending helps preserve its cash flow – while partnerships with companies such as Alphabet could help Apple strengthen its AI capabilities without taking on the same financial risks as its peers.