Apple Faces AI, Tariff Pressures Ahead of Fiscal Q3 Results

Apple will release fiscal third-quarter results after Thursday’s closing bell, with Wall Street expecting revenue of roughly $89.3 billion and earnings of about $1.43 a share. The quarter traditionally marks the company’s seasonal low point, but investors hope the numbers will steady a stock that has fallen around 16% this year. Analysts say the update must show progress on artificial-intelligence initiatives after peers Alphabet and Meta credited their own AI investments for strong results earlier in the week. Speculation has centered on whether Apple will outline a deeper push into generative AI, including a possible partnership with start-up Perplexity, to address concerns that it is lagging in the technology race. Tariff costs remain a second overhang. The U.S. administration’s higher duties on Chinese goods have added to Apple’s supply-chain expenses, and Chief Executive Officer Tim Cook previously estimated the measures could lift quarterly costs by as much as $900 million. Investors are looking for clarity on how those pressures, as well as softer consumer demand in China, are affecting margins and guidance. Beyond the near-term numbers, the market will parse management commentary on September’s expected iPhone launch, potential changes to Apple’s long-standing search deal with Google, and the trajectory of the company’s high-margin services business. Any signs that new products or cost controls can offset trade headwinds and an AI shortfall could help bolster sentiment after a difficult stretch for the world’s most valuable consumer-electronics brand.