Apple Inc. posted better-than-expected earnings for its fiscal second quarter, but shares fell nearly 4% in after-hours trading on Thursday, as mounting concerns over declining sales in China and escalating tariff uncertainty dampened investor enthusiasm.

The tech giant reported a 5% year-on-year increase in revenue to $95.4 billion for the March quarter, surpassing analysts’ forecasts of $94.6 billion. Earnings per share also came in stronger than anticipated at $1.65, above the projected $1.62. Apple highlighted double-digit growth in its Services division and modest gains in iPhone sales, driven by demand for the newly released, budget-friendly iPhone 16e.

Despite the positive headline figures, investors focused on Apple’s weaker performance in Greater China, where revenue fell by 2.3% year-on-year to $16 billion. The dip follows an 11% decline in the previous quarter and reflects intensifying competition from domestic smartphone makers like Xiaomi and Vivo, as well as lagging innovation in artificial intelligence features compared to rivals.

In contrast, U.S. sales rose 8% over the same period. However, Apple CEO Tim Cook noted there was no evidence of consumers speeding up purchases in anticipation of new tariffs, suggesting that broader economic uncertainty continues to shape consumer behavior.

Tariff-related costs remain a looming challenge. Apple expects a $900 million increase in expenses during the June quarter if no new levies are introduced. While President Donald Trump recently exempted electronics from a fresh wave of China tariffs, existing measures continue to impact key components. Cook described the outlook for the second half of the year as “very difficult” to predict.

In response to ongoing trade tensions, Apple is reportedly accelerating efforts to shift iPhone production for the U.S. market to India, potentially starting in 2026. Cook confirmed that while some assembly has moved, most global production remains in China.

Apple’s Services segment, which includes Apple TV+, iCloud, and the App Store, saw revenue grow 12% to $26.7 billion. Though still robust, this marked a slight slowdown from 14% growth last quarter. The division is under scrutiny in the EU and U.S. over regulatory concerns related to digital marketplaces and payment systems.

Elsewhere, sales of Mac and iPad devices rose 7% and 15% respectively, boosted by the launch of new M3-powered models. However, the Wearables, Home, and Accessories segment declined 5%, a dip attributed to last year’s Vision Pro launch creating a tough year-on-year comparison.

Despite the uncertainty, Apple increased its quarterly dividend by 4% to $0.26 per share and authorized a new $100 billion stock buyback program. Still, shares have fallen 16% year-to-date, underscoring investor caution as the company navigates a complex geopolitical and regulatory landscape.

Apple forecast low-to-mid single-digit revenue growth for the current quarter, falling short of analysts’ expectations for a 5% rise.

Tech giants Microsoft and Meta Platforms reported stronger-than-expected earnings for the March quarter, buoyed by surging demand for artificial intelligence technologies, which helped offset broader economic uncertainty and recent global trade tensions.

Both companies posted results that outperformed Wall Street expectations, triggering a positive reaction in after-hours trading. Microsoft shares climbed 7%, while Meta gained 5.4%, providing a lift to U.S. stock futures.

Microsoft’s AI Momentum Boosts Azure Growth

Microsoft’s fiscal third-quarter earnings showed significant growth in its cloud computing segment, with Azure and related services rising 33% year-on-year—beating analyst expectations of 29%. The company said that AI services contributed 16 percentage points to Azure’s growth, up from 13% in the previous quarter.

CEO Satya Nadella emphasized the central role of AI in the company’s strategy, stating: “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth.” Microsoft has aggressively integrated AI into its offerings, including its Office 365 suite and GitHub Copilot assistant, now used by over 15 million developers.

Microsoft’s total revenue reached $70.1 billion, a 13% increase from the same period last year. Earnings per share rose to $3.46, well above the consensus estimate of $3.22. All major business units, including LinkedIn, Microsoft 365, and Dynamics cloud services, reported double-digit growth.

However, recent U.S. tariffs could pose a challenge going forward. Microsoft has already scaled back some global data centre projects. Nevertheless, the company plans to invest $80 billion in infrastructure by the end of fiscal 2025.

Meta Posts Solid Growth, Eyes AI Expansion

Meta also exceeded expectations, with revenue rising 16% to $42.31 billion. Earnings per share jumped 35% to $6.43, well above the forecasted $5.28. Advertising, which makes up 98% of the company’s revenue, totaled $41.39 billion, beating estimates.

CEO Mark Zuckerberg highlighted the company’s continued momentum: “Our community continues to grow, and our business is performing very well. We’re making good progress on Meta AI and our AI glasses.” Meta AI, a generative AI tool, now boasts nearly one billion monthly active users.

To support its AI ambitions, Meta raised its capital expenditure forecast to between $64 billion and $72 billion for 2025. The company said most of the increase will go toward expanding its data centre capacity and acquiring advanced AI hardware.

Still, Meta flagged potential regulatory headwinds in Europe, noting that new rules could affect user experience and revenue in the region starting as early as the third quarter.

Both companies’ strong quarters underscore how AI continues to drive revenue and investor confidence, even amid global economic headwinds.

British fintech giant Revolut is making its first move into the telecom sector, unveiling plans to launch monthly mobile phone services in the UK and Germany later this year, with other European markets to follow.

The company, known for its digital banking and financial services, said the new offering is aimed at disrupting the traditional telecom industry by offering greater transparency, no long-term contracts, and a better customer experience. The mobile plans will include unlimited calls, texts, and data domestically, with roaming allowances for use abroad.

Revolut’s UK customers will benefit from 20GB of roaming data across the EU and the US, while users in Germany will receive 40GB for EU roaming. However, details for roaming between the EU and the UK — which no longer shares the EU’s “roam like at home” protections post-Brexit — have yet to be finalized.

“In our view, consumers are suffering with traditional network offerings due to a lack of transparency, hidden fees, and outdated user experiences,” said Hadi Nasrallah, Revolut’s General Manager of Telecoms. He added that Revolut’s goal is to bring simplicity and fairness to mobile services, much like it did with banking.

Instead of building its own network, Revolut will operate as a mobile virtual network operator (MVNO), leasing infrastructure from established telecom companies. Although the fintech has not revealed which firms it will partner with, Nasrallah confirmed that some of the partners operate across multiple European markets.

Revolut emphasized that it will rely on both contractual guarantees and strong working relationships with its network providers to maintain high service standards.

While Europe boasts over 30 mobile network operators (MNOs), compared to just a few in markets like the US or China, industry experts say this fragmentation presents opportunities for MVNOs to enhance competition without requiring heavy infrastructure investments.

“It’s almost impossible to enter the EU market as an MNO due to regulatory and licensing hurdles,” said Tomaso Duso, head of department at DIW Berlin and chair of the German monopolies commission. “But MVNOs can stimulate innovation and consumer choice.”

Revolut’s mobile plans will be integrated into its app, and customers will be able to pay using loyalty points. Early adopters joining a waitlist can access the plans at an introductory rate of £/€12.50 per month.

The announcement marks another step in Revolut’s push to expand beyond financial services, following recent ventures into eSIMs, travel bookings, and mortgages.