What happened
Shares of Apple (AAPL 2.15%) jumped 7.6% on Friday after the technology titan's sales and profits exceeded investors' expectations.
So what
Apple's revenue rose 8% year over year to $90 billion in its fiscal 2022 fourth quarter ended Sept. 24. The tech leader's growth would have been even more impressive had the U.S. dollar not appreciated so sharply against many international currencies. "We would have grown in double digits without the foreign exchange headwinds," CEO Tim Cook said in an interview with CNBC.
Apple was able to generate gains in its most important business segments, even as the overall personal computer and smartphone markets experienced sharp downturns amid steep declines in consumer demand. Mac sales surged 25% to $11.5 billion. iPhone revenue increased by 10% to $42.6 billion. And Apple's high-margin services segment managed to grow by 5%, to $19.2 billion.
"The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high," chief financial officer Luca Maestri said in a press release.
NASDAQ: AAPL
Key Data Points
Better still, Apple's profits grew even as supply chain shortages drove up its costs. Its operating income climbed by nearly 5% to a whopping $25 billion. And its earnings per share increased by 4%, to $1.29. That was above Wall Street's projections, which had called for per-share earnings of $1.27.
"Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop," Maestri said.
Now what
Apple's solid results were praised by investors who have come to view the company's stock as a bastion in the current economic storm, which has driven sharp declines in the prices of many other tech stocks. With its defensive status now well-secured, Apple's share price could continue to rise as more investors seek shelter from the market's volatility.
