Apple Inc (NASDAQ:AAPL, ETR:APC) will hand down its fiscal third quarter earnings next week, with Wall Street expecting the iPhone maker to report modest growth on the top and bottom lines for the seasonally weaker quarter ahead of major product launches in the fall.
The company is expected to report earnings per share (EPS) of $1.42 on revenue of $89.1 billion, representing growth of 1.4% and 3.9% over the year-ago quarter, respectively.
iPhone sales are expected to be about $47 billion for the quarter, up slightly from $46.84 billion in the year-ago period.
Double-digit growth is expected for Services revenue, which includes offerings such as Apple Music, iCloud, Apple TV+, and Apple Arcade.
Investors will be closely watching to see the impact of tariffs on Apple's expenses. Tariffs imposed on imports from China and other countries by the US have increased Apple's production costs by an estimated $900 million in the June quarter.
This prompted the company to diversify manufacturing to India and Vietnam to mitigate the impact, but it still faces higher costs and potential price increases for products like the iPhone sold in the US.
An update on Apple’s AI monetization initiatives is expected amid concerns that the company has fallen behind its tech peers like Meta and Microsoft in this space.
Guidance for Q4 will also be watched. Wall Street, on average, expects Apple to project EPS of $1.65 and revenue of $97.67 billion for Q4.
Apple will hand down its Q3 report after US markets close.
The company’s shares traded hands at about $209 ahead of its report, down almost 17% in the year to date.
- Updated with share price movement -