Apple Services Misses Forecasts as F1 Comp Drags Growth
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- Apple's Services division posted $30.7 billion in fiscal Q3 (June quarter), up 12% and a record — but below analyst forecasts and Apple's own guidance, with the company signaling further moderation in the current quarter.
- Apple TV viewership hit an all-time high in the June quarter, executives told Wall Street, even as the division's growth rate softened.
- CFO Kevan Parekh attributed the slowdown to FX headwinds and the absence of last year's theatrical release of F1: The Movie, which has grossed $634 million worldwide since its June 2025 debut with Warner Bros. distributing.
- Tim Cook delivered his 90th and final earnings call as CEO, with John Ternus set to step into the role on September 1.
- Apple TV earned a record 89 Emmy nominations, leading all networks in both drama and comedy categories; the Broadway adaptation of Schmigadoon! won four Tonys including Best Musical.
- Services topped 1.5 billion paid subscriptions, with the App Store setting a June revenue record despite mobile gaming headwinds.
- The Supreme Court will hear Apple's appeal in its ongoing Epic Games antitrust case over its 27% fee on external third-party web purchases in its next term starting in October.
Why it matters: Apple's $30.7 billion Services revenue was a record but missed both analyst forecasts and Apple's own guidance, with executives attributing the miss to FX and a one-time F1: The Movie comp. The slowdown comes as Cook hands the CEO role to Ternus on September 1, after a quarter where Services topped 1.5 billion paid subscriptions across every category from advertising to AppleCare.
