Apple has just disclosed the earnings for its fiscal third quarter of 2026, delivering on heightened expectations with a strong print albeit marred by weakness in its services segment.
Here are the key highlights from Apple's latest quarterly earnings release:
- Total Sales - $109.42 billion, up 16.3% year-over-year (YoY)
- iPhone Sales - $54.252 billion, up 21.7% YoY
- Mac Sales - $10.352 billion, up 28.7% YoY
- iPad Sales - $6.191 billion, dowwn 5.9% YoY
- Wearables, Home and Accessories - $7.883 billion, up 6.5% YoY
- Services - $30.739 billion, up 12.1% YoY but shy of consensus expectations of $31.36 billion
- Gross Margin - $54.77 billion or 25.3 percent vs. expectations of 48%
- R&D Expenses - $11.729 billion
- Net Income - $29.789 billion
- Cash and Cash Equivalents - $39.544 billion
Apple earned $78.68 billion from its products segment and $30.739 billion from its services segment, equating to 18.1 percent year-over-year growth for the former and 12.1 percent for the latter.
Apple's Q3 2026 total sales managed to beat the consensus estimate of $108.85 billion. Likewise, its quarterly EPS of $2.02 also came ahead of consensus expectations, which were pegged at $1.89. China sales, at $18.816 billion, came out worse than the $19.58 billion number estimated by analysts.
Apple's iPhone revenue beat expectations, which were pegged at $53.60 billion vs. the $54.25 billion haul that the Cupertino giant reported for the latest three-month period.
Similarly, ahead of today's disclosure, Apple's Mac revenue consensus estimate was pegged at $8.62 billion, while that for iPad revenue and wearables was pegged at $6.89 billion and $7.87 billion, respectively.
Basically, Apple has missed consensus expectations on its services revenue, iPad revenue, and revenue from China. All consensus estimates have been sourced from here .
- "Mac Delivered its best June quarter yet with 10.4 billion in revenue, growing an impressive 29% from a year ago despite significant supply constraints."
- Apple has identified "foreign exchange headwinds" as one of the reasons behind weakness in services revenue.
- Apple says MacBook Neo's "gross margin was 40.1%, up 140 basis points sequentially," and includes a 2.5% favorable impact from tariff refunds.
- Apple says "during the June quarter, we did experience supply constraints primarily on the Mac and to a lesser extent on iPhone and iPad. These were driven by very high levels of demand."
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