Apple reports $9.55 billion in services revenue, up 31 percent since last year

  • Wall Street had expected software and services revenue to remain essentially unchanged from the previous quarter, according to StreetAccount.
  • The catch-all services category includes the App Store, Apple Care, Apple Pay, iTunes and cloud services.
  • Many on Wall Street have been bullish on the sector.
Apple CEO Tim Cook speaks at Apple's Worldwide Developer Conference (WWDC) at the San Jose Convention Center in San Jose, California on Monday, June 4, 2018.
Josh Edelson | AFP | Getty Images
Apple CEO Tim Cook speaks at Apple's Worldwide Developer Conference (WWDC) at the San Jose Convention Center in San Jose, California on Monday, June 4, 2018.

Apple posted $9.55 billion in software and services revenue for its third quarter, as the hardware giant continues to push beyond iPhones and and other hardware.

That's a jump of 31 percent from the year-ago quarter, when Apple reported services revenue of $7.27 billion. It's also ahead of consensus estimates of $9.21 billion, according to StreetAccount, and a jump from the $9.19 billion Apple reported for the second quarter.

The company noted in its earnings release that services revenue "included a favorable one-time item of $236 million in connection with the final resolution of various lawsuits."

The company's stock rose about 2 percent after hours on a strong quarter overall. Apple's third quarter ended June 30.

The company is inching toward a goal set in January 2017 by CEO Tim Cook to double services revenue to more than $14 billion a quarter by 2020.

The catch-all services category includes the App Store, Apple Care, Apple Pay, iTunes and cloud services. Many on Wall Street have been bullish on the segment, which last quarter accounted for just 15 percent of Apple's total revenue. The segment has for several quarters been far outpacing iPhone revenue in growth rate, falling second only to growth in revenue from Apple's "other products" category, which includes the Apple Watch.

--CNBC's Chloe Aiello contributed to this report.