Abstract created by Sensible Solutions AI
In abstract:
- Macworld studies Apple achieved report June quarter income of $109.4 billion, marking a 16% year-over-year improve with sturdy iPhone, Mac, and Companies development.
- This represents Tim Cook dinner’s last full quarter as CEO earlier than John Ternus takes over, coinciding with important operational challenges forward.
- Regardless of the success, Apple faces declining iPad gross sales, provide chain constraints, and 31% elevated R&D spending to $11.7 billion impacting future profitability.
Apple’s third-quarter 2026 earnings report on Thursday wasn’t your typical monetary announcement. It was Apple CEO’s Tim Cook dinner’s final full quarter, which gave it a little bit of nostalgia. However extra importantly, it marked the tip of 1 / 4 the place Apple introduced steep worth will increase for the Mac, iPad, HomePod, Apple TV, and Apple Imaginative and prescient Professional following elevated prices for RAM, storage, and different parts.
Seems that Apple posted its strongest June quarter ever. Apple introduced income of $109.4 billion for the quarter, a 16 p.c year-over-year improve. The corporate’s gross margin was 50.1 p.c, and diluted earnings per share (EPS) have been $2.02, up 29 p.c 12 months over 12 months.
“Right now, Apple is proud to report our strongest June quarter ever, with double-digit income development throughout iPhone, Mac and Companies, and in each geographic section,” mentioned Cook dinner in a press launch. The Mac boasted a 29 p.c improve (a June quarter report), and Apple mentioned it set a brand new all-time report with upgraders and prospects new to the Mac. iPhone income elevated 22 p.c, and Companies jumped 12 p.c.
How the quarter ended year-over-year for Apple:
- iPhone: $54.3 billion (up from $45 billion)
- iPad: $6.2 billion (down from $6.6 billion)
- Mac: $10.4 billion (up from $8 billion)
- Wearables, Dwelling, and Equipment: $7.9 billion (up from $7.4 billion)
- Companies: $30.7 billion (up from $27 billion)
Apple declared a money dividend of $0.27 per share of widespread inventory. The dividend is payable on August 13 to shareholders of report as of the shut of enterprise on August 10.
Nevertheless, there are indicators that greater costs affected Apple’s total earnings within the quarter. For one, the EPS included “a positive affect of $0.11 from tariff refunds,” that means the precise worth would have been $1.91, so much nearer to the anticipated $1.88. Moreover, the all-important Higher China area noticed a softening to $18.8 billion versus an anticipated $19.5 billion, a reasonably important miss. Additionally, iPad gross sales are clearly struggling and received’t be helped by dramatically greater costs.
A notable change in Apple’s monetary assertion is a rise in analysis and improvement expenditure. Apple spent $11.7 billion, up from $8.9 billion 12 months over 12 months, a large 31 p.c improve.
Through the name, Apple CFO Kevan Parekh said that Apple expects income to extend between 9 and 11 p.c total for the upcoming quarter and that the present supply-chain scarcity will impact Mac, iPhone, and iPad gross sales. Cook dinner said that the constraints could have a extra extreme affect on Apple’s manufacturing and that Apple expects to spend extra on reminiscence than within the earlier two quarters. Apple’s inventory was down $23 after the corporate introduced the following quarter outlook
The decision was the final for Cook dinner, who’s stepping down as CEO in September. Through the name, Cook dinner made the next assertion:
The transition [to John Ternus as CEO] goes seamlessly, and I’m past excited for John to step into his new function and lead Apple into its subsequent period. He’s really certainly one of a form and there’s no higher individual to take the helm of the corporate. As I’ve mentioned, I couldn’t be extra assured in his management, in our govt crew, and within the extraordinary folks at Apple who’re decided to complement the lives of our customers all around the world. We have now a brilliant future forward, and I actually have by no means been extra optimistic.
Apple CEO Tim Cook dinner
In 2012, Cook dinner’s first 12 months as CEO, Apple posted annual income of $156.5 billion. In Cook dinner’s last quarter as CEO, the corporate posted $109.4 billion. In 2025, Apple posted income of $416.16 billion.
