Apple posted a green quarter, but $AAPL still found a way to dip 🍏

Apple beat Wall Street’s profit and revenue forecasts in John Ternus’ first quarter as CEO, earning $2.10 per share on revenue of $114.5 billion, up 12% from a year earlier. Analysts expected about $2.00 per share and $113.4 billion in revenue. The September-quarter result also marked Apple’s best fiscal year ever, while $AAPL shares fell 1.83% during Monday’s regular session to close at $338.32 and slipped to $335.00 after the report. Options traders had priced in a move of about 3.5%, per Pepperstone.

Net income rose 12% to $30.71 billion, and gross margin reached 47.9%, near the top of Apple’s 47% to 48% forecast. One-off tariff refunds contributed $0.05 to earnings per share and one percentage point to gross margin; without that benefit, earnings would have been $2.05 per share. Apple said, “Today, Apple is proud to report a September quarter revenue record of $114.5 billion, up 12 percent from a year ago, with iPhone reaching a September quarter record and Services reaching an all-time high, capping off our best fiscal year ever.”

Revenue by product was led by iPhone at a September-quarter record of $57.58 billion, up 17%, followed by Services at $31.57 billion, which matched forecasts and represented 10% growth. Mac sales jumped 24% to $10.79 billion, while iPad sales fell 10% and Wearables, Home and Accessories revenue declined 8%. By region, Americas revenue rose 10%, Europe increased 12%, Greater China grew 21% to $17.54 billion, Japan declined 1%, and the Rest of Asia Pacific grew 15%. Greater China was below analysts’ expectations of about $18.55 billion.

The results came as memory chip costs remained a pressure point, with AI data centers buying up supply and SK Hynix forecasting a memory shortage until 2030. InvestingLive identified Greater China as the quarter’s clear weak spot, saying the shortfall could temper any rally, while much of the initial share decline occurred before the report was released.

Apple’s December-quarter outlook is due on the earnings call. It will be the first quarter to include a full holiday season of iPhone 18 Pro sales, InvestingLive noted. The company is also addressing a security concern in Germany after Digital Minister Karsten Wildberger confirmed that Apple warned some lawmakers and ministers of “mercenary spyware,” hacking tools usually sold to governments.