06:33 AM EDT, 08/01/2025 (MT Newswires) -- Apple ( AAPL ) shares rose early Friday as the technology giant reported better-than-expected fiscal third-quarter results, boosted by double-digit sales growth for iPhones, Macs and services.

The company posted net income of $1.57 a share for the quarter ended June 28, up from $1.40 the year before, it said late Thursday. The consensus on FactSet was for EPS of $1.43. Overall sales climbed to $94.04 billion from $85.78 billion, topping the Street's view for $89.41 billion. The stock inclined 2% in the most recent premarket activity.

"These results were driven by double-digit growth across iPhone, Mac and services," Chief Executive Tim Cook said during an earnings call, according to a FactSet transcript. "We saw an acceleration of growth around the world in the vast majority of markets we track, including Greater China and many emerging markets."

Sales for iPhone advanced 13% to $44.58 billion, driven by the iPhone 16 model, while the active installed base for the flagship product grew to an "all-time high," Chief Financial Officer Kevan Parekh said on the call. Mac revenue increased 15% to $8.05 billion, buoyed by "continued strength across the portfolio, including MacBook Air, Mac mini and MacBook Pro," according to Parekh.

Services revenue jumped 13% year over year to $27.42 billion amid broad-based growth, Parekh told analysts. The majority of the categories in the segment accelerated on a sequential basis, including cloud services, the CFO added. Sales for iPad declined to $6.58 billion from $7.16 billion, while wearables, home and accessories sales fell to $7.4 billion from $8.1 billion last year.

Apple ( AAPL ) logged revenue growth in all of its geographic regions, including China, which recorded sales of $15.37 billion versus $14.73 billion in the 2024 quarter. In an emailed client note, Wedbush Securities said the China result was "considerably better" than its expectations, with government stimulus helping generate demand during the quarter.

The company incurred roughly $800 million in costs related to tariffs during the third quarter, Cook said on the call, compared with the $900 million hit he estimated in May. For the ongoing three-month period, Apple ( AAPL ) forecasts tariffs to "add about $1.1 billion" to its expenses, assuming current duties, policies and applications don't change for the balance of the quarter and no new tariffs are added, according to Cook.

The US administration has set a Friday deadline for countries to negotiate trade deals with Washington or face higher tariffs. President Donald Trump said earlier in the week that his tariffs deadline "will not be extended."

Apple ( AAPL ) anticipates mid- to high-single-digit revenue growth year over year in the September quarter, Parekh said on the call, while the Street is currently looking for nearly $98.8 billion. Gross margin is pegged at 46% to 47%, including the estimated $1.1 billion of tariff-related costs, while operating expenses are projected to be between $15.6 billion and $15.8 billion, Parekh added.