Tim Cook's Last Quarter as CEO Was Apple's Best June Quarter Ever. The Stock Fell Anyway.

Apple's fiscal third-quarter revenue rose 16% year over year to a June-quarter record of $109.4 billion.

Services revenue of $30.7 billion grew about 12%, the slowest of the company's three biggest revenue categories.

Apple (NASDAQ: AAPL) closed the Tim Cook era with its best June quarter ever, with revenue rising 16% year over year to $109.4 billion. The stock still fell as much as 8% in after-hours trading because the market's objections centered on what comes next: supply constraints, rising supply costs, and a share price that had already climbed to about 40 times earnings.

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The quarter itself left little to criticize. Earnings per share rose 29% year over year to $2.02, net income climbed 27% to $29.8 billion, and iPhone revenue jumped 22% to $54.3 billion. Mac revenue grew even faster, up 29%.

The company's gross margin expanded, too, reaching 50.1% against 46.5% a year earlier. Also worth noting, the quarter's earnings included an $0.11-per-share benefit from tariff refunds. Excluding it, earnings per share still grew about 22%.

"Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment," Cook said in the earnings release -- his last as CEO. John Ternus takes over on Sept. 1, and Cook becomes executive chairman.

Services, which may have been one reason shares sold off, was the softest of Apple's three biggest revenue categories. Revenue there rose about 12% year over year to $30.7 billion -- a June-quarter record and the category's 12th straight quarter of double-digit growth, but the slowest growth of the three. And the high-margin services business is the line the stock's premium valuation leans on most.