The Cupertino, California-based technology company earned $29.79 billion, or $2.02 per share, during the April-to-June quarter. That was up 27% from $23.43 billion, or $1.57 per share, a year earlier.

Revenue rose 16% to $109.42 billion, compared with $94.04 billion during the same quarter last year.

According to FactSet, analysts expected earnings of $1.89 per share on revenue of $109 billion. The supplied material said tariff refunds worth 11 cents per share also contributed to Apple’s quarterly earnings.

iPhone and Mac Sales Fuel Growth

Apple Chief Executive Officer Tim Cook said the company recorded its strongest June quarter on record.

He said double-digit revenue growth in the iPhone, Mac and Services businesses helped drive the results. Every geographic segment also reported growth during the quarter.

“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” Cook said.

The results suggest Apple’s core hardware business remains resilient even as the broader technology industry increases spending on artificial intelligence infrastructure.

Higher Component Costs Continue

Apple continues to face higher component costs, particularly for memory chips.

Last month, the company raised prices on Mac computers and iPads, citing shortages driven by strong demand for memory chips used in artificial intelligence systems.

Apple previously described the surge in memory demand as an “unprecedented challenge” for the consumer electronics industry.

The company has not increased iPhone prices. However, according to the supplied material, analysts and consumers expect price increases later this year.

Leadership Change Nears

The earnings announcement marked Tim Cook’s final quarterly conference call as Apple’s chief executive.

Cook announced in April that he will retire after leading Apple for 15 years.

John Ternus, the company’s senior vice president of hardware engineering, is scheduled to become chief executive on Sept. 1.

“I couldn’t be more confident in his leadership, in the executive team and the extraordinary people at Apple,” Cook said of Ternus.

Investors Focus on Future Costs

Investors are weighing Apple’s strong earnings against the potential impact of rising costs.

Thomas Monteiro, an analyst at Investing.com, said Apple continues to generate strong cash flow without matching the scale of AI infrastructure spending seen at several of its largest technology rivals.

According to Monteiro, that has helped distinguish Apple as investors increasingly examine how AI investments affect free cash flow across the technology sector.

He cautioned that higher memory chip costs could pressure future earnings. He also noted that the tariff-related benefit reported this quarter will not recur.

Monteiro said upcoming iPhone launches and possible price increases could help offset those headwinds.

Despite reporting stronger-than-expected results, Apple’s shares fell $7.52, or 2.3%, to $325.91 in after-hours trading.

This report is based on reporting by The Associated Press.

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The Seattle-based coffee chain said global comparable-store sales increased 7.9% during the April–June quarter, exceeding analysts’ expectations of 5.7%, according to FactSet. Comparable-store sales in the United States also rose 7.9%.

Investors responded positively to the results, sending Starbucks shares more than 5% higher in after-hours trading.

The company also raised its outlook, forecasting 6% global comparable-store sales growth for the fiscal year ending Sept. 28, up from its previous projection of 5%.

Starbucks now expects full-year earnings per share of $2.55 to $2.65, compared with its earlier guidance of $2.25 to $2.45.

Sales Growth Broadens Across Customer Groups

Starbucks said quarterly growth was driven by improved performance across multiple customer income groups and throughout both morning and afternoon business hours.

The company also reported that customers spent more during each visit, supported by continued growth in delivery orders and demand for newly introduced beverages.

The results suggest Starbucks’ sales momentum extended beyond its traditional morning coffee business.

New Beverages Support Customer Demand

Chairman and Chief Executive Officer Brian Niccol highlighted the success of the company’s seasonal beverage lineup.

He said the S’mores Cold Brew, featuring marshmallow syrup, marshmallow cream cold foam and graham cracker topping, became one of Starbucks’ strongest limited-time summer beverage launches in recent years, particularly among Generation Z customers.

Niccol also said Starbucks’ fruit-based Refreshers beverages continued performing well despite growing competition.

McDonald’s expanded its own fruit beverage offerings in the United States earlier this year as restaurant chains compete for customers in the fast-growing specialty drinks market.

Store Upgrades Continue

Starbucks said investments in store renovations have also improved the customer experience.

“People just feel better about, you know, even doing their mobile order pickup when they go to a coffeehouse versus a place that maybe wasn’t up to our Starbucks standards,” Niccol told investors during a conference call.

The company has redesigned more than 1,000 stores across North America and plans to renovate another 500 locations before the end of its fiscal year.

Revenue Tops Expectations Despite Annual Decline

Starbucks reported $9.3 billion in quarterly revenue, a 1% decline from the same period last year but above analysts’ expectation of $9.2 billion.

The company said part of the decline reflected the sale of a stake in its China business, a transaction completed in April.

Starbucks also said its quarterly results benefited from a tariff refund received during the period, which largely offset tariffs paid during the first three quarters of the fiscal year.

Profit Climbs Sharply

Starbucks reported net income of $1 billion, an 87% increase from a year earlier.

Excluding one-time items, the company earned 85 cents per share, surpassing analysts’ estimate of 66 cents per share.

The results reflect stronger operating performance as Starbucks continued efforts to improve store operations, expand menu offerings and strengthen customer engagement.

Company Sees Momentum Continuing

The higher full-year guidance reflects management’s confidence that store renovations, beverage innovation and stronger customer spending will continue supporting sales growth.

The company said improved performance across multiple customer groups and dayparts indicates demand has broadened rather than relying solely on traditional morning coffee traffic.

As competition intensifies across the coffee and specialty beverage market, Starbucks continues investing in product innovation and store improvements while balancing restructuring efforts and external cost pressures.

This report is based on reporting by The Associated Press.

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The Redmond, Washington-based technology company reported $90 billion in revenue and earnings of $4.81 per share for the April–June quarter, exceeding analysts’ expectations of $87.62 billion in revenue and $4.24 per share, according to FactSet.

The results underscore Microsoft’s continued momentum in cloud infrastructure and enterprise artificial intelligence as businesses expand investments in AI-powered technologies.

Cloud Business Continues Strong Growth

Microsoft Cloud generated $59.3 billion in quarterly revenue, up 27% from the same period a year earlier.

The company attributed the increase to continued demand for Azure cloud services and AI-powered applications.

Revenue from Azure and other cloud services rose 43% year over year, reflecting sustained enterprise demand for cloud infrastructure and artificial intelligence workloads.

For the fiscal year ended in June, Microsoft reported total revenue of $331.8 billion.

Chief Executive Officer Satya Nadella said Azure reached a major milestone during the year.

“This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation,” Nadella said.

AI Adoption Gains Momentum

The continued expansion of Azure and Microsoft 365 Copilot has become a central measure of Microsoft’s ability to generate returns from its substantial artificial intelligence investments.

Michael J. Wolf, founder and chief executive of Activate Consulting, said Microsoft is benefiting from growth in both AI infrastructure and AI-powered workplace software.

He said the company is simultaneously supplying cloud computing capacity for enterprise AI applications while generating recurring revenue from AI capabilities integrated into widely used productivity products.

Microsoft has continued expanding AI infrastructure and enterprise software as organizations increase adoption of generative AI technologies.

Capital Spending Plans Remain Unchanged

Microsoft said its capital investment plans for calendar year 2026 remain unchanged despite accounting adjustments that will make projected spending appear closer to approximately $175 billion.

Chief Financial Officer Amy Hood told investors the accounting changes do not represent a shift in Microsoft’s underlying investment strategy.

Earlier this year, Hood said Microsoft expected approximately $190 billion in capital expenditures during 2026, including roughly $25 billion associated with higher component costs.

Microsoft reported $41 billion in capital expenditures during the latest quarter.

The company’s investment plans remain closely watched as major technology firms continue expanding data centers, cloud infrastructure and AI computing capacity.

Investors Look for Returns on AI Spending

Technology companies have invested hundreds of billions of dollars in artificial intelligence, prompting investors to seek clearer evidence that those expenditures are translating into sustainable financial returns.

Bryan Hayes, an investment strategist at Zacks Investment Research, said investors appeared more confident that Microsoft’s AI spending is producing measurable business results.

“For the first time in three quarters, the market appears willing to grant that the spending is buying something real,” Hayes said.

Danielle Criste, Microsoft’s director of investor relations, also expressed confidence that the company’s long-term AI investments will continue generating value.

“We remain very confident in the long-term return on these investments, given these strong demand signals, the increasing product usage we’ve seen and the efficiencies that we’re driving across the platform,” Criste said.

Shares Rise After Earnings Beat

Microsoft shares rose following the earnings announcement as investors responded positively to stronger-than-expected revenue, continued Azure growth and increasing adoption of AI-powered products.

The stock gained approximately 9% in after-hours trading to $426.03.

The latest earnings reinforce Microsoft’s position as one of the leading companies in enterprise artificial intelligence, with cloud computing and AI services continuing to drive growth while supporting the company’s long-term business strategy.

This report is based on reporting by The Associated Press.

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The company, which owns Facebook, Instagram, WhatsApp, Messenger and Threads, reported net income of $15.85 billion, or $6.18 per share, for the April–June quarter. That compared with $18.34 billion, or $7.14 per share, during the same period a year earlier, representing a 14% decline in profit.

Revenue rose 28% to $60.8 billion, exceeding analysts’ average estimate of $60.22 billion, according to FactSet. Earnings per share, however, fell short of the $7.19 forecast.

The results illustrate Meta’s efforts to balance continued investment in artificial intelligence with rising legal and restructuring costs.

Revenue Growth Driven by AI Strategy

Chief Executive Officer Mark Zuckerberg said artificial intelligence continues to strengthen Meta’s existing platforms while creating new long-term business opportunities.

“AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities,” Zuckerberg said in a statement.

“The results are already showing, and I’m optimistic about the potential ahead.”

Meta has increasingly positioned AI as the centerpiece of its long-term strategy, investing heavily in AI infrastructure, products and enterprise capabilities.

User Growth Continues Across Platforms

Meta said its family of applications—including Facebook, Instagram, Messenger, WhatsApp and Threads—reached 3.6 billion daily active users, an increase of 3% from the same quarter last year.

Zuckerberg also said Instagram surpassed 2 billion daily active users, while Threads reached 500 million monthly active users.

The company did not disclose revenue generated by individual platforms.

Workforce Shrinks Following Layoffs

Meta reported 75,472 employees as of June 30, down 1% from a year earlier.

The company said that figure still includes approximately 8,000 employees affected by layoffs announced previously. Meta said its third-quarter report will reflect the updated workforce total after those reductions are completed.

Legal and Restructuring Costs Pressure Earnings

Meta increased the lower end of its projected full-year expenses after recognizing $2.4 billion in legal expenses during the quarter.

The company now expects full-year 2026 expenses to total between $165 billion and $169 billion.

Second-quarter operating expenses rose 55% to $42.03 billion, including:

• $2.40 billion in legal-related charges.
• $1.18 billion in severance expenses associated with layoffs announced in May.

The higher spending also affected cash generation.

Meta’s free cash flow fell 91% to $784 million, compared with $8.55 billion during the same quarter last year.

Analysts Assess Meta’s AI Position

Meta’s earnings were released as the company continued an extensive campaign promoting its artificial intelligence strategy.

Emarketer analyst Minda Smiley said Meta has worked to better communicate its AI ambitions through advertising and public messaging as it seeks a stronger competitive position in the rapidly expanding AI market.

Ahead of the earnings announcement, Zuckerberg published an opinion article in The Wall Street Journal arguing that artificial intelligence could eventually provide “personal superintelligence to everyone.”

Smiley said Meta’s optimistic messaging about AI comes as the company continues to face criticism over allegations concerning the impact of social media on children, creating additional challenges as it seeks to shape public perceptions of its AI initiatives.

Outlook Falls Short of Expectations

For the current quarter, Meta forecast revenue between $61 billion and $64 billion.

The midpoint of $62.5 billion is below analysts’ consensus estimate of $63.14 billion, tempering investor optimism despite stronger-than-expected revenue growth during the latest quarter.

Following the earnings release, Meta shares fell $24.76, or 4.2%, to $560.85 in after-hours trading.

While the company continued to report robust revenue growth and expanding user engagement, investors focused on the financial impact of legal expenses, restructuring costs and continued investment in artificial intelligence.

The latest results underscore Meta’s challenge of sustaining growth through AI-driven innovation while managing rising costs associated with legal matters, workforce restructuring and long-term technology investments.

This report is based on reporting by The Associated Press.

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For the January–March quarter, Apple posted revenue of $111.18 billion, up 17% year-over-year, while net income rose to $29.58 billion, or $2.01 per share, according to the AP report. The figures surpassed analyst forecasts of $109.46 billion in revenue and $1.95 per share in earnings, as compiled by FactSet.

The results underscore the central role of the iPhone in Apple’s financial performance, with continued demand driving overall growth across its product ecosystem.

iPhone Sales Remain Core Growth Driver

iPhone revenue reached $56.99 billion in the quarter, representing the bulk of Apple’s total sales, according to company disclosures cited by the Associated Press. CEO Tim Cook said it was Apple’s “best March quarter ever,” attributing performance to “double-digit growth across every geographic segment.”

The iPhone 17 lineup was a key contributor to results, with Cook noting “extraordinary demand” during the period. Analysts highlighted that sustained upgrade cycles and strong global demand helped offset broader macroeconomic uncertainty in parts of the consumer electronics sector.

Broader Product Segments Show Mixed but Stable Growth

Beyond the iPhone, Apple reported gains across its Mac, iPad, and services businesses. Mac and iPad revenue increased year-over-year, supported by new product introductions, while services continued to expand as a recurring revenue stream.

According to the AP report, services—encompassing subscriptions such as iCloud, Apple Music, and App Store transactions—remained a stabilizing force in Apple’s overall revenue mix. The segment continues to be closely watched by investors due to its higher margins compared with hardware sales.

Investor Focus Shifts to AI Strategy and Leadership Change

Despite strong financial results, investor attention is increasingly centered on Apple’s artificial intelligence strategy and corporate leadership transition.

The company has faced scrutiny over its pace in deploying advanced AI features compared with competitors, a factor that analysts say could influence future device upgrade cycles. Apple has indicated ongoing development of AI-driven features across its ecosystem, though full implementation timelines remain a key market focus.

At the same time, Apple is preparing for a leadership change. Tim Cook announced earlier this month that he will step down as CEO later this year, with hardware chief John Ternus set to succeed him, according to AP reporting. The transition marks a significant shift for the company after more than a decade under Cook’s leadership.

Outlook Hinges on Product Cycle and AI Integration

Analysts cited in market coverage suggest Apple’s near-term performance will depend on continued iPhone demand and the company’s ability to integrate AI features into its hardware ecosystem. Services growth and global market expansion remain additional supporting factors.

While the earnings beat reinforces Apple’s scale and resilience, investors are watching closely for signals on how the company plans to compete in an increasingly AI-driven technology landscape.

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