Apple (NASDAQ:AAPL) reported third-quarter results that topped Wall Street estimates, boosted by strong iPhone sales, but shares declined over 2% on Friday due to tariff-related concerns and a lack of AI momentum.

The company posted earnings of $1.57 per share on revenue of $94.04 billion, exceeding analyst projections of $1.43 per share and $89.53 billion in revenue.

iPhone sales climbed 13% year-over-year to $44.58 billion, surpassing expectations of $40.22 billion. Apple noted that its active installed device base reached a record high across all products and regions.

Sales in Greater China rose to $15.37 billion, up from $14.73 billion a year ago, and above estimates of $15.19 billion, reversing earlier declines tied to domestic competition.

Apple's services division, which includes Apple Pay and the App Store, grew 13% year-over-year to $27.42 billion, beating the $26.80 billion forecast.

Despite these gains, the company flagged rising tariff-related costs for the current quarter. Analysts also noted limited contribution from artificial intelligence, with some investors viewing Apple as lagging behind AI-enhanced competitors.