Apple (NASDAQ: AAPL) shares fell approximately 4% in after-hours trading on Wednesday after CEO Tim Cook delivered his final quarterly earnings report, despite the company posting record June quarter revenue and earnings.

Cook is scheduled to step down as chief executive on September 1, 2025, after 15 years in the role. He succeeded Steve Jobs in August 2011 and has overseen Apple's transformation into one of the world's most valuable companies. The transition will be only the third CEO change in Apple's modern era, marking a significant inflection point for a company that has frequently tied its strategic direction to its leadership. Apple hardware chief John Ternus will assume the CEO position, while Cook will transition to executive chairman. Ternus, who joined Apple in 2001 and has led hardware engineering through multiple product cycles, will take the helm at a time when the smartphone market is intensely competitive and AI integration is reshaping consumer devices.

According to Apple's official announcement, the company reported quarterly revenue of $109.4 billion, up 16% from $94 billion in the same period a year earlier. Net income rose to $29.8 billion from $23.4 billion, while diluted earnings per share climbed 29% to $2.02.

The company posted a gross margin of 50.1%. Tariff refunds contributed approximately two percentage points to gross margin and boosted earnings by $0.11 per share. Apple, like other major hardware manufacturers, has navigated an evolving U.S.-China tariff landscape that has affected cost structures across the consumer electronics industry.

On the product side, iPhone revenue increased nearly 22% year-over-year to reach a June quarter record of $54.3 billion. Mac revenue grew 29% to $10.4 billion. Services revenue climbed 12% to a record $30.7 billion, a segment that includes the App Store, Apple Music, iCloud, Apple TV+, and AppleCare and has become central to Apple's profitability story given its substantially higher margins than hardware. iPad revenue fell nearly 6% to $6.2 billion, while revenue from Wearables, Home and Accessories increased approximately 6% to $7.9 billion.

Apple recorded growth across every geographic segment. Greater China revenue surged more than 22% to $18.8 billion, and Europe revenue climbed to $29.4 billion from $24 billion a year earlier.

The negative stock market reaction appeared to reflect softer-than-expected results in the Services and iPad segments, along with investor concerns that tariff refunds contributed meaningfully to the earnings beat.

The results marked Apple's strongest June quarter on record, providing Cook with a robust final report before Ternus takes leadership of the company in September.