Apple reported fiscal third-quarter 2026 revenue of $109.4 billion, up 16 percent year-over-year, in what CEO Tim Cook called the company's strongest June quarter ever, with double-digit growth across iPhone, Mac and Services and in every geographic region. iPhone sales rose about 22 percent to $54.25 billion, while Mac sales grew nearly 29 percent to $10.35 billion. iPad revenue fell about 6 percent to $6.19 billion, and Services revenue rose 12 percent to $30.74 billion but missed analyst expectations of $31.36 billion. China revenue of $18.82 billion also came in below the $19.58 billion analysts had forecast. Sources differ on gross margin figures, with one report citing 25.3 percent and Apple's own release citing 50.1 percent, including a roughly 2-point benefit from tariff refunds. Despite the record results, Apple's stock fell 8 percent following the earnings call, reportedly on the China and services misses.
Much of the call, in what was described as Cook's final earnings call as CEO, centered on Apple's ongoing memory chip crunch. Cook said Apple 'reluctantly raised prices' last month on devices other than the iPhone because of what he called a '100-year flood' in memory pricing, with exponential increases in memory costs. Apple said it paid more for memory in each recent quarter and expects to pay even higher costs in the September quarter. Cook and CFO Kevan Parekh said supply constraints—primarily affecting Macs, and to a lesser extent iPhones and iPads—were driven by unexpectedly high demand rather than a typical supply issue, with Cook warning that supply-chain impacts are expected to increase significantly in the current quarter and that Apple will be 'scrambling on supply' in the months ahead.
On the memory question, Apple confirmed it is continuing to evaluate sourcing DRAM and NAND from Chinese suppliers CXMT and YMTC, saying such sourcing could help on the supply side, though the pricing benefit is unclear. This comes despite pushback from U.S. lawmakers, including Senators Jim Banks and Chuck Schumer, who have urged Apple to abandon talks with the two companies—both on a Pentagon list tied to China's military—and have asked Apple to commit by August 21 not to pursue the deals and to disclose any technical information shared with the firms. Reports have also indicated Apple lobbied the U.S. administration for clearance to buy from CXMT and worked with officials to limit political blowback if it sources memory from the Chinese companies for products sold in China.
Mac sales growth was linked in part to the lower-cost MacBook Neo, championed by incoming CEO John Ternus, which helped push Mac revenue up more than 25 percent quarter-over-quarter to $10.35 billion. Apple said the MacBook Neo's gross margin was 40.1 percent, up 140 basis points sequentially, including a 2.5 percent benefit from tariff refunds, indicating the cheaper laptop did not significantly hurt margins. The MacBook Neo, priced at $599 before a $100 price increase, gained traction in U.S. education, with half of institutional purchases reportedly displacing Windows laptops and Chromebooks, including a Florida school district moving 25,000 students to the device. However, supply constraints on the A18 Pro chip that powers the MacBook Neo limited its potential, with one analyst cited as expecting a 40 percent drop in shipments during 2026.
Apple's board declared a quarterly dividend of $0.27 per share, payable August 13, 2026, to shareholders of record as of August 10, 2026. Diluted earnings per share came in at $2.02, up 29 percent year-over-year and ahead of consensus expectations of $1.89, including an $0.11 benefit from tariff refunds. Looking ahead, coverage noted that the upcoming quarter will be a key test of how Apple manages the memory crisis, with the Apple Upgrade Program cited as a potential tool for steadier revenue, and speculation about further price increases on future iPhone models.