Apple’s Services Revenue Reaches Record High in Q3, Driving Earnings Beat

Apple (AAPL) reported third-quarter results that beat analysts’ estimates as services revenue surged to a record high.

The iPhone maker reported third-quarter revenue of $85.78 billion, a 5% gain year-over-year, and above analysts’ estimates compiled by Visible Alpha. Net income also came in ahead of projections at $21.45 billion or $1.40 per share, up from 19.88 billion or $1.26 per share a year earlier.

CEO Tim Cook Highlights Record Q3 Revenue, AI Advances

Apple CEO Tim Cook said the company set a new high for third-quarter revenue, as services revenue climbed to a quarterly record. Sales of Apple’s iPads and Macs rose as well, while iPhone sales declined close to 1%.

Cook also highlighted the company’s recent developments related to artificial intelligence (AI). Apple Intelligence was unveiled during the quarter at Apple’s June developers conference, alongside its new operating system iOS 18, which is expected to be made available to users in the fall.

Apple shares were little changed in extended trading Thursday following the announcement. The stock has gained over 13% since the start of the year through Thursday’s close.