Apple Q3 2026 Earnings Beat on iPhone and Mac Strength

Apple Inc. (NASDAQ: AAPL) reported fiscal third-quarter 2026 results on Thursday, July 30, 2026, surpassing Wall Street expectations as record iPhone and Mac sales and tariff refunds boosted revenue and profit. Services and Greater China revenue fell short of consensus.

Quarter Results and Profitability

Apple posted net sales of $109.4 billion for the June quarter, a 16.4% increase year over year and a June-quarter record. Diluted earnings per share rose about 29% to $2.02, while net income increased roughly 27% to $29.8 billion. The quarter included tariff refunds that added $0.11 per share to EPS. Gross margin expanded to 50.1%.

Product Strength and Regional Performance

iPhone revenue reached approximately $54.2 billion, up about 22% year over year, marking the best June-quarter performance for the product and exceeding analyst estimates. Mac revenue rose roughly 29% to about $10.4 billion, the product line’s strongest June quarter, driven by upgrades to newer models and strong demand for MacBook Neo and MacBook Pro systems.

Apple raised prices on Macs and iPads in the prior month amid a memory-chip shortage linked to AI demand. This contributed to revenue growth and margin strength despite supply constraints. Management noted that advanced chipmaking supply limitations reduced flexibility but did not prevent record hardware performance.

Services revenue grew about 12% year over year to roughly $30.7 billion but missed Street forecasts. Apple reported 1.5 billion subscriptions across its services ecosystem, including paid and free users. The company cited a gaming slowdown and App Store policy changes as factors weighing on services growth.

iPad revenue declined about 6% to near $6.2 billion, the only major product category to fall year over year. Wearables, Home and Accessories revenue rose roughly 6.5% to about $7.9 billion, slightly above expectations.

Greater China revenue increased about 22% to roughly $18.8 billion but fell short of analyst estimates. Apple reported double-digit revenue growth in every geographic segment, indicating China’s shortfall reflected a gap versus consensus rather than a year-over-year decline.

Analysts noted the quarter’s upside was partly driven by tariff refunds and recent price increases, which may normalize as one-time benefits expire. The refunds stemmed from tariffs imposed the prior year and overturned by the U.S. Supreme Court in February. Services and Greater China remain near-term challenges amid strong hardware momentum.

This quarter was widely framed as Tim Cook’s final earnings report as chief executive. Cook is expected to step down in September and transition to executive chairman, with John Ternus previously named as his successor.

The leadership transition will test whether new management can sustain the current hardware upgrade cycle while addressing slower services growth and China’s softness amid ongoing supply-chain pressures.