Omanghana
Apple reported record fiscal third-quarter results for 2026, surpassing Wall Street expectations as strong demand for iPhones and Macs lifted revenue and profit.
The technology company generated $109.4 billion in revenue during the quarter ended June 27, representing a 16% increase from the same period last year. Diluted earnings rose 29% to $2.02 per share, while net income climbed 27% to approximately $29.8 billion.
Analysts had expected earnings of about $1.89 per share on roughly $109 billion in revenue.
Apple’s results received a temporary boost from refunds on U.S. tariffs. The refunds added approximately 11 cents to earnings per share and contributed about two percentage points to the company’s reported gross margin of 50.1%.
The iPhone remained Apple’s largest source of revenue, generating approximately $54.3 billion. Sales increased nearly 22% from the previous year, reflecting strong consumer demand despite economic uncertainty and elevated device prices.
Mac revenue also delivered a major surprise, rising 28.7% to $10.35 billion. The figure comfortably exceeded analysts’ projection of approximately $8.74 billion.
Apple’s Services division, which includes the App Store, Apple Music, iCloud, Apple Pay and other subscription products, generated a June-quarter record of $30.7 billion. Although revenue grew 12.1%, it fell short of Wall Street’s higher forecast of about $31.2 billion.
Greater China revenue also came in below analysts’ expectations, despite recording year-over-year growth. The result renewed concerns about Apple’s competitive position in one of its most important international markets.
Despite the strong quarterly performance, Apple shares fell by approximately 6% during after-hours trading as investors focused on the company’s weaker outlook for the September quarter.
Apple forecast revenue growth of between 9% and 11%, below Wall Street’s expectation of roughly 12%. The company attributed its cautious projection to worsening component shortages, foreign-exchange pressures and rising production expenses.
Chief Executive Officer Tim Cook warned that Apple was experiencing significant supply constraints involving advanced chip manufacturing and memory components. The shortages are expected to affect the availability of iPhones, Macs and iPads during the current quarter.
Elevated memory prices are also placing pressure on profitability. Excluding the temporary benefit from tariff refunds, Apple’s third-quarter gross margin would have been approximately 48.1%.
The market reaction highlighted the gap between Apple’s strong recent performance and investors’ concerns about whether the company can maintain its growth while navigating supply limitations and higher input costs.
The results marked Cook’s final earnings report as Apple’s chief executive. He will become executive chairman on September 1, while longtime hardware engineering chief John Ternus assumes the CEO position.
Apple’s board unanimously approved the succession plan. Cook will continue working with Ternus during the transition and will remain involved in selected company matters, including global policy engagement.
Source: Omanghana
