Apple NASDAQ:AAPL is scheduled to report fiscal third-quarter results after Thursday's market close, with investors expected to focus on services growth, artificial intelligence initiatives, and a planned leadership transition.
Wall Street forecasts Apple will post fiscal third-quarter earnings of $1.89 per share on revenue of about $108.9 billion. Apple has exceeded both earnings and revenue estimates for the past eight consecutive quarters. Investors are also expected to monitor iPhone demand, updates on the iPhone 17 launch cycle, and continued expansion of the company's higher-margin services business.
Apple reported record fiscal second-quarter revenue of $111.2 billion and earnings per share of $2.01, up about 17% and 22% year over year, respectively. Services revenue reached a record $31 billion, contributing to stronger gross margins as recurring revenue continued to expand. Earlier this month, Chinese regulators cleared Apple Intelligence, powered by Alibaba's Qwen AI model, for rollout in Greater China, potentially expanding AI features to millions of iPhone users.
Analysts also are expected to watch Apple's earnings call for commentary on the planned CEO succession, with Tim Cook anticipated to hand leadership to hardware chief John Ternus. Bank of America recently reiterated its Buy rating and $380 price target, citing resilient iPhone demand and growing AI adoption, while Wall Street maintains an overall Buy consensus on Apple.