European Investor
01 May 2026, 15:26
Apple Rises 3.4% in Pre-Market as Record iPhone and Services Quarter Overshadow Memory Cost Warning
Apple shares are up 3.4% in pre-market trading tody, after the
company delivered its best March quarter in history, topping estimates across every major category and issuing guidance that dramatically beat expectations.
Revenue came in at $111.2 billion, up 17% year-over-year, beating the $109.66 billion consensus, while EPS of $2.01 topped estimates of $1.95 and grew 22% from the prior year. iPhone revenue surged 22% to $57 billion, a March quarter record, with CEO Tim Cook citing extraordinary demand for the iPhone 17 lineup as the primary driver. (9to5Mac, heygotrade)
Services continued its relentless march higher. Services revenue grew 16.3% to $30.98 billion, setting a new all-time record and beating the $30.4 billion estimate, with double-digit growth in both developed and emerging markets and all-time records across every major category within the segment. Greater China was a standout, with revenue growing 28% to $20.49 billion against an $18.9 billion expectation, a number that will silence near-term concerns about China demand erosion. (Yahoo Finance)
The Q3 guidance was the real catalyst for after-hours and pre-market enthusiasm. Apple guided Q3 revenue growth of 14% to 17%, against analyst expectations of just 9.5% growth to $103 billion, a massive beat that pushed shares sharply higher during the conference call. (StockAnalysis)
There are two near-term headwinds worth watching. Cook warned that significantly higher memory costs are expected to impact gross margin in the June quarter and beyond, driven by the global AI data center build-out creating a memory component shortage. Supply constraints on Mac mini and Mac Studio are also expected to persist for several months. (heygotrade)
The earnings call also marked a significant leadership moment. Cook confirmed he will transition to executive chairman on September 1, with hardware SVP John Ternus becoming CEO, and Apple announced the end of its formal net cash neutrality target, authorizing a new $100 billion buyback and raising the quarterly dividend 4% to $0.27 per share. (heygotrade)
After the results were released, shares initially dipped as much as 1.24% before rebounding to a gain of 5.36%, ultimately settling around 1.86% by the end of after-hours trading, with pre-market extending the gains further as investors digested the blowout Q3 guidance.
Apple shares are up 3.4% in pre-market trading tody, after the
company delivered its best March quarter in history, topping estimates across every major category and issuing guidance that dramatically beat expectations.
Revenue came in at $111.2 billion, up 17% year-over-year, beating the $109.66 billion consensus, while EPS of $2.01 topped estimates of $1.95 and grew 22% from the prior year. iPhone revenue surged 22% to $57 billion, a March quarter record, with CEO Tim Cook citing extraordinary demand for the iPhone 17 lineup as the primary driver. (9to5Mac, heygotrade)
Services continued its relentless march higher. Services revenue grew 16.3% to $30.98 billion, setting a new all-time record and beating the $30.4 billion estimate, with double-digit growth in both developed and emerging markets and all-time records across every major category within the segment. Greater China was a standout, with revenue growing 28% to $20.49 billion against an $18.9 billion expectation, a number that will silence near-term concerns about China demand erosion. (Yahoo Finance)
The Q3 guidance was the real catalyst for after-hours and pre-market enthusiasm. Apple guided Q3 revenue growth of 14% to 17%, against analyst expectations of just 9.5% growth to $103 billion, a massive beat that pushed shares sharply higher during the conference call. (StockAnalysis)
There are two near-term headwinds worth watching. Cook warned that significantly higher memory costs are expected to impact gross margin in the June quarter and beyond, driven by the global AI data center build-out creating a memory component shortage. Supply constraints on Mac mini and Mac Studio are also expected to persist for several months. (heygotrade)
The earnings call also marked a significant leadership moment. Cook confirmed he will transition to executive chairman on September 1, with hardware SVP John Ternus becoming CEO, and Apple announced the end of its formal net cash neutrality target, authorizing a new $100 billion buyback and raising the quarterly dividend 4% to $0.27 per share. (heygotrade)
After the results were released, shares initially dipped as much as 1.24% before rebounding to a gain of 5.36%, ultimately settling around 1.86% by the end of after-hours trading, with pre-market extending the gains further as investors digested the blowout Q3 guidance.