In a remarkable display of resilience, two of the world's technology behemoths have delivered quarterly performances that left analysts scrambling to revise their forecasts. Both Apple and Amazon have reported first-quarter results that comfortably exceeded market expectations, sending positive ripples through the tech sector.
Apple's strategic pivot continues to pay dividends, with the company reporting earnings of $1.53 per share against the predicted $1.50. Revenue reached $90.75 billion, surpassing the $90.01 billion forecast. While iPhone sales experienced a slight dip of 10%, this was more than compensated for by robust growth in the company's services division and other product categories.
The tech giant's Chinese business showed particular strength, with CEO Tim Cook noting the region achieved year-over-year growth in constant currency terms. This performance comes as a welcome relief to investors concerned about Apple's position in the competitive Chinese market.
Amazon's cloud computing empire demonstrated its enduring power, with the company posting earnings of 98 cents per share compared to the expected 83 cents. Revenue climbed to $143.3 billion, beating estimates of $142.5 billion. The standout performer was Amazon Web Services (AWS), which saw sales jump 17% to $25 billion.
CEO Andy Jassy highlighted the "reaccelerating growth" of AWS, noting that the division continues to attract significant enterprise commitments. The company's advertising business also emerged as a powerhouse, generating $11.8 billion in revenue—a 24% increase that underscores Amazon's growing dominance in the digital ad space.
Both companies provided optimistic guidance for the current quarter, suggesting the tech rally that has driven markets higher this year may have further room to run. The results demonstrate that despite economic uncertainties and regulatory challenges, well-established tech giants continue to find pathways to growth.
