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Apple's Services Surge Powers Record Growth
6 Dec
Summary
- Apple reported a fiscal third quarter revenue of $102.5 billion, up 7.9% year over year.
- Services revenue reached an all-time high of $28.8 billion, growing 15% year over year.
- The company maintained a robust balance sheet with $132 billion in cash and returned $24 billion to shareholders.
Apple Inc. announced impressive fiscal third-quarter results, surpassing expectations with revenue climbing to $102.5 billion, a 7.9% increase from the previous year. The company's Services segment was a standout performer, achieving a record $28.8 billion in revenue, marking a 15% year-over-year growth. This segment's ongoing strength in areas like the App Store and cloud services highlights Apple's strategic shift towards predictable, high-margin cash flows.
Growth was observed across multiple product lines, with iPhone revenue increasing by 6% to $49 billion, driven by strong demand, particularly in emerging markets like India and Latin America, despite supply constraints in China. Mac revenue saw a significant 13% jump to $8.7 billion, supported by new M5-powered devices. Apple also reported a record $29.7 billion in free cash flow and maintained a healthy balance sheet with $132 billion in cash.
Looking forward, Apple's management anticipates continued momentum, projecting 10-12% revenue growth for the December quarter and sustained double-digit gains for iPhones and mid-teens growth for Services. The company is also increasing capital spending to support AI infrastructure and private cloud expansion, positioning itself for a strong holiday season and durable growth into fiscal year 2026.
