Apple guides 9%-11% revenue growth, missing analyst estimates of 12.1%

Apple Inc. guided fiscal fourth-quarter revenue growth of 9% to 11%, trailing the 12.1% consensus estimate among analysts.

"The lower end of our guidance range reflects ongoing supply constraints in certain component categories," CFO Luca Maestri said on the call. He added that foreign exchange headwinds would shave about 1.5 percentage points from reported growth.

The company reported fiscal third-quarter revenue of $108.8 billion, in line with the consensus estimate, with earnings per share of $1.88 matching analyst expectations. iPhone sales rose 8% year over year to $51.2 billion, while Mac revenue climbed 12% to $9.4 billion. Services revenue reached $26.8 billion, up 14% from a year earlier.

The guidance miss marks a cautious outlook for the September quarter, typically Apple's largest due to the iPhone launch cycle. The company's transition to in-house modem technology, which Qualcomm CEO Cristiano Amon said would accelerate in the coming quarters, adds uncertainty to component costs and supply chain dynamics. Qualcomm said it expects revenue from Apple products to decline more quickly starting in the fourth quarter as supply constraints reduce its share of components used in the next iPhone launch.

Wednesday's call was the last with Tim Cook as chief executive officer. The company did not disclose a specific date for Cook's successor to take over. Apple also faces questions about whether its new Upgrade Program, which spreads device costs over monthly payments, will offset recent price increases and sustain demand.

The guidance suggests Apple expects a more muted holiday quarter than investors had priced in. The next catalyst for the stock will be the iPhone 17 launch event, expected in September, where the company will reveal pricing and feature details for its latest lineup.

This article is for informational purposes only and does not constitute investment advice.