Apple Inc (NASDAQ:AAPL) shares rose 2.75% in after-hours trading after the iPhone maker group reported quarterly results ahead of market expectations.
Revenue came in at $111.18 billion for the March quarter, up 17%, beating forecasts of $109.46 billion. Earnings per share of $2.01 also came in ahead of estimates.
Growth was driven by iPhone and Services, with handset revenue rising 22% to $57 billion.
China was a standout, with revenue in the region climbing 28% to $20.5 billion, a sharp turnaround from recent quarters when it had weighed on performance.
Wedbush analyst Dan Ives said China "is a key theme for Apple as this core region has been a persistent growth headwind".
Services revenue reached $30.98 billion, slightly ahead of expectations, while gross margins of 49.3% and operating margins of 32.3% also beat forecasts.
As China was considerably better than Street expectations, Ives said the country is now a “strong tailwind” for the group, particularly as investors look ahead to the next iPhone upgrade cycle.
He added that Apple has "done a great job navigating a very complex tariff situation and memory pricing headwinds so far".
For the current quarter, Apple guided to total revenue growth of 14-17%, "crushing" the Street estimate of around 9%.
This was the highlight of the earnings call, Ives said, "as the iPhone 17 supercycle continues to gain momentum across nearly every major geography, setting up significant momentum heading into the iPhone 18 launch in September."
The June guide also "bakes in" continued supply constraints across models including Mac Mini, Mac Studio, and the new MacBook Neo, where management indicated it could take several months to reach supply demand balance.
With Tim Cook handing over the CEO role, his successor, hardware chief John Ternus, made his debut on the call alongside Cook.
Ives expects a "smooth September 1st handoff with continuity on capital discipline" and what Ternus called the most exciting product roadmap of his 25-year Apple career.
The transition sets up the annual Worldwide Developers Conference (WWDC) at Apple Park in early June "as the most consequential developer conference in years", added Ives, with the tech world watching for the long-awaited personalized Siri, expanded Apple Intelligence capabilities, and additional details on the Google Gemini collaboration.
"With iPhone 17 firing on all cylinders, China a clear tailwind, the June guide well ahead of the Street, and Ternus about to take the wheel heading into WWDC, it's all about the AI strategy."
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