Apple TV+ viewership hit an all-time high last quarter but tough comps from the release of F1 the year before led to slower growth at Apple’s giant Services division, executives said Thursday, delivering a bit more color than usual as they were peppered with questions by Wall Street.

Services, which houses Apple TV+, posted sales of $30.7 billion for the tech giant’s fiscal third quarter ended in June. That was up 12% and a new record but below analysts’ forecasts and the company’s guidance. Apple indicated growth would continue to moderate in the current quarter.

Asked why on a call after earnings, Apple CEO Tim Cook and CFO Kevan Parekh largely blamed foreign exchange. Parekh also noted that in 2025, “We had the theatrical release of F1, which is one of the highest grossing sports films in history. And this year, we didn’t. So that had an impact on both the June quarter, and also the September quarter.”

Apple released F1: The Movie, directed by Joseph Kosinski and starring Brad Pitt, in late June of 2025 with Warner Bros. distributing. It’s grossed $190 million domestic and $634 million worldwide.

Parekh also noted headwinds in mobile gaming in the App Store. “Keep in mind, we also made some changes to the App Store business model in certain countries. And, in the U.S., we continue to operate under a court ruling impacting link out transactions. But we’re pleased the Supreme Court will hear our appeal.”

He was referring to a civil contempt finding in an ongoing antitrust battle with Epic Games over whether Apple’s 27% fee on external third-party web purchases violates a court order requiring it to allow external payment links in apps. The Court is expected to take up the case in its next term, which starts in October.

The App Store still set a June revenue record, Parekh said, along with every other Services category from advertising and AppleCare to music and video.

In total, Services topped 1.5 billion paid subscriptions in the quarter, he said.

Apple doesn’t break out financials of the various Services businesses but Cook, speaking on his 90th and last earnings call, gave his usual shoutout to the streaming service.

“Apple TV continues to leave audiences spellbound with new releases like Widow’s Bay and Cape Fear, alongside returning favorites like Silo and Sugar. And next week, we’re excited that Ted Lasso is back for its fourth season.

“It was wonderful to see Apple TV with the industry’s top honors, adding Tony Awards this year to its Emmy, Grammy, and Oscar wins.” The Broadway musical adaptation of Apple TV’s Schmigadoon! won four Tonys including Best Musical.  

“We reached that milestone faster than any streamer in history,” Cook said. “We’re also looking forward to this year’s Emmy awards, where Apple has landed a record 89 nominations, leading all networks in both the major drama and comedy series categories … “Widows Bay also stands out as the year’s most nominated new program, earning 19 Emmy nominations. In the six and a half years since launch, Apple TV has earned more than 850 wins and nearly 3,800 nominations.”

Cook’s successor John Ternus will step up as CEO on September 1.

In farewell remarks, the outgoing CEO thanked Apple shareholders — “particularly our long term shareholders who have put their trust in us for so many years” — and analysts, “who have followed our company so closely.”

“As you know, this will be my final earnings call, and John will leave these calls going forward. The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era. He is truly one of a kind, and there is no better person to take the helm of the company. As I’ve said, I couldn’t be more confident in his leadership, in our executive team, and in the extraordinary people at Apple who are determined to enrich the lives of our users all over the world. We have a bright future ahead, and I truly have never been more optimistic.”

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