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Apple shares drop after fiscal Q3 as free cash flow jumps
Apple reported fiscal Q3 revenue of $109.4 billion and lifted free cash flow 30.8% to $31.9 billion, but the stock fell 7.4% the next day.
Apple’s fiscal Q3 results showed strong free cash flow growth, supporting a high free cash flow margin, according to an analysis published by Yahoo Finance. The outlet highlighted that free cash flow grew 30.8% year over year in the quarter to $31.9 billion, while free cash flow margins were reported at 29.2% for both the quarter and on a trailing 12-month basis, based on Stock Analysis data.
Revenue also rose in Apple’s fiscal Q3 ended June 27, increasing 16.4% year over year to $109.4 billion. On a trailing 12-month basis, revenue was up 14.2% to $466.8 billion, and Yahoo Finance said analysts’ revenue forecasts are higher, implying stronger free cash flow potential over the next 12 months.
Despite higher capex, the analysis pointed to operating cash flow growth of 23.3% year over year in the quarter, and noted capex fell below the prior year level. The outlet also tied the cash flow outlook to potential valuation support, citing projections for revenue for the year ending September 2027 of $524.8 billion, which it said would be 9.9% higher than the $477.4 billion forecast for fiscal 2026.
On the market reaction, Apple shares were down 7.35% on Friday, July 31, to $308.91 after the company’s July 30 earnings release. The stock peaked at $340.08 on July 28 and remained above a recent trough of $275.15 on June 25, according to the same Yahoo Finance write-up.