Apple Q3 2026 Earnings Show Record Quarter

Apple Inc. reported its strongest June quarter on July 30, 2026, driven by robust iPhone sales and Services revenue. The company posted record revenue and earnings per share but cautioned that near-term growth would slow due to memory-cost inflation and supply constraints, leading to a mixed investor response.

Record June Quarter Results

For the fiscal third quarter ended June 27, 2026, Apple reported revenue of $109.4 billion, a 16% increase year over year, marking its strongest June quarter. Diluted earnings per share rose 29% to $2.02, while net income reached about $29.8 billion, up 27%.

iPhone sales totaled $54.3 billion, up 22% from a year earlier, setting a June-quarter record. Mac revenue grew 29% to $10.4 billion, supported by strong demand for MacBook Neo and MacBook Pro models and AI-related use cases. Services revenue hit $30.7 billion, a June-quarter record and a 12% increase year over year, though it fell short of analyst estimates near $31.2–31.3 billion. iPad sales declined 6% to $6.19 billion, while Wearables, Home and Accessories generated $7.88 billion.

Apple’s installed base of active devices surpassed 2.5 billion, and paid subscriptions exceeded 1.5 billion. Operating cash flow reached a June-quarter record $34.4 billion. The company reported record revenue in every geographic segment during the period.

Gross margin was 50.1%, boosted by tariff refunds that contributed about two percentage points and added roughly $0.11 to diluted EPS, enhancing reported profitability.

Guidance and Supply Constraints

Apple guided revenue growth of 9% to 11% for the next quarter, below the pre-call consensus of about 12%. Management attributed the softer outlook mainly to supply constraints and elevated memory costs rather than weaker demand.

The company said higher memory chip prices and limited availability would compress gross margins toward the mid-40% range, describing this as a supply-side pressure that will affect near-term profitability.

While demand for iPhone, Mac, and Services remains strong, the combination of supply constraints, a Services revenue shortfall, and a softer-than-expected performance in Greater China tempered investor enthusiasm. Greater China revenue grew about 22% to roughly $18.8 billion but missed analyst estimates near $19.5–19.6 billion.

Separately, Apple surpassed $10 billion in annual sales in India for the first time, with the iPhone cited as the primary growth driver. This quarter also marks a leadership transition as John Ternus prepares to succeed Tim Cook as chief executive.

“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 company’s press release.