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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