Apple Inc (NASDAQ:AAPL, ETR:APC)shares fell more than 2% in extended trading on Thursday, despite the iPhone maker beating Wall Street expectations for both profit and revenue in its fiscal first quarter, as investors focused on weaker-than-expected Services growth and a decline in China sales.
The company reported earnings per share of $1.65, above analysts’ expectations of $1.63, and revenue of $95.4 billion, up 5% from a year ago and topping estimates of $94.5 billion.
While Apple’s core hardware segments posted solid results, including iPhone revenue of $46.84 billion, up nearly 2% year-over-year, and iPad sales that jumped 15%, its Services division came in slightly below forecasts at $26.65 billion, missing the $26.72 billion estimate.
Revenue from Greater China, a key market, declined 2% to $16 billion, falling short of the expected $16.83 billion, raising fresh concerns about demand in the region.
“We delivered strong quarterly results, including double-digit growth in Services,” CEO Tim Cook said in a statement. Cook also highlighted progress on sustainability efforts and upcoming product launches, including the iPhone 16e and new Macs and iPads powered by Apple silicon.
The company authorized a new $100 billion share repurchase program and raised its quarterly dividend to $0.26 per share, a 4% increase. Apple returned $29 billion to shareholders during the quarter.
Geographically, revenue grew in most regions, led by a 17% jump in Japan and 8% growth in the Americas. Europe was up just 1% while revenue from the rest of Asia Pacific increased 8%.