Latest quarter
Apple reported Q3 FY2026 revenue of $109.4 billion, compared with the $108.7 billion consensus, while adjusted EPS as the consensus counts it was $1.91 against a $1.88 consensus. The company reported diluted EPS of $2.02, up 28.7% from Q3 FY2025, as revenue increased 16.4% from $94.0 billion a year earlier.
Apple’s filing said iPhone sales increased on higher sales of Pro models, Mac sales rose on laptops, and Services grew on advertising and cloud services. The filing said iPad sales declined because of lower iPad mini and iPad Air sales, while Wearables, Home and Accessories sales increased on accessories and wearables. Apple reported gross margin of 50.1%, compared with 46.5% a year earlier, and said product-margin gains reflected product mix and tariff refunds, partly offset by higher costs including memory. The company reported operating cash flow of $34.4 billion and free cash flow of $31.9 billion. Apple’s reported 16.4% revenue growth fell within its 14.0% to 17.0% guide, while its 50.1% gross margin was above its 47.5% to 48.5% guide.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $109.4 billion | $94.0 billion | 16.4% |
| Diluted EPS | $2.02 | $1.57 | 28.7% |
| Gross margin | 50.1% | 46.5% | 3.6 percentage points |
| Operating margin | 32.6% | 30.0% | 2.6 percentage points |
| Free cash flow | $31.9 billion | $24.4 billion | 30.8% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.91 | $1.88 | Beat by 1.60% |
| Revenue | $109.4 billion | $108.7 billion | Beat by 0.62% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Gross margin | Q3 FY2026 | 47.5%–48.5% | 50.1% | Above the guide |
| Revenue growth | Q3 FY2026 | 14.0%–17.0% | 16.4% | Within the guide |
What management said on the call
On the earnings call, Tim Cook said Apple faced supply constraints in the June quarter, primarily in Mac and to a lesser extent in iPhone and iPad, which he attributed to high demand and reduced supply-chain flexibility. Cook said the primary constraint was the availability of advanced semiconductor nodes used for Apple’s system-on-chips, rather than a partner or supplier issue.
Responding to questions about the outlook, Cook said iPhone and Mac were performing better than Apple had expected, requiring the company to seek more supply. Kevin, Apple’s CFO, said constraints would increase significantly in Q4 FY2026 and affect iPhone, Mac and iPad. Kevin also said foreign exchange would reduce year-over-year total-company growth by around 2.5 percentage points in Q4 FY2026.
Cook told analysts that memory costs had risen from the prior quarter and that Apple expected the market price of memory to keep increasing beyond Q4 FY2026. He said carry-in inventory would provide a decreasing benefit over time, while lower costs for certain non-memory components would partly offset memory costs. Cook said Apple raised prices in response to memory-price inflation and described Apple’s pricing approach as weighing units, revenue and margin over the long term.
On Services, Kevin said the App Store faced mobile-gaming headwinds and changes to its business model in certain countries, while Apple continued to operate under a U.S. court ruling affecting link-out transactions. Kevin said cloud services, video, payment services and advertising recorded strong double-digit growth during the June quarter, and that Services surpassed one and a half billion paid subscriptions.
Cook said Apple was increasing operating expenses and AI investment, while some Siri AI requests could run on-device. Apple did not provide outlook or guidance beyond Q4 FY2026.
Guidance
Apple expects total-company revenue to grow 9% to 11% year over year in Q4 FY2026. Kevin said foreign exchange is expected to reduce the year-over-year total-company growth rate by around 2.5 percentage points, and Apple expects supply constraints to increase significantly and affect iPhone, Mac and iPad. Apple said it was not providing outlook or guidance beyond Q4 FY2026.