Apple Inc.’s much-awaited quarterly earnings report failed to soothe investor concerns about its biggest challenges, including escalating tariff costs and a slowdown in China.

Apple reported stronger-than-expected earnings for the second quarter of fiscal year 2025. However, its shares dropped by nearly 4% in extended trading as concerns over declining China sales and ongoing tariff uncertainty weighed on investor sentiment.

Apple shares fell more than 4 percent in early trading Friday as investors weighed an outlook for the iPhone maker that’s clouded by tariffs. The company’s fiscal second-quarter results came in ahead of analyst estimates,

The company announced it upped its quarterly cash dividend to $0.26 per share and its board approved a $100 billion share buyback program.

On the impact of tariffs, Tim Cook said it's "very difficult to predict beyond June," while Apple's AI is "taking a bit longer than we thought."

And Apple CEO Tim Cook had quite a carefully crafted statement. (Check out CNET's regularly updated tariff pricing tracker.) And the word of the day for this earnings call was "color." "Now let me walk you through the impacts of tariffs in the March quarter and give you some color on what we expect for the June quarter,