Apple today announced financial results for its fiscal 2026 third quarter, in what is Tim Cook’s final earnings appearance before his retirement after 15 years at the helm of the company.
John Ternus, Apple’s head of hardware engineering, will assume the CEO role on 1 September.
The company reported third quarter earnings of $2.02 a share, which got a boost of 11 cents a share from tariff refunds. Apple sales were $109.4 billion, up 16% from a year ago.
iPhone revenue was $54.25 billion, thanks to a 22 percent increase in iPhone sales. The Mac saw $10.35 billion in revenue, the iPad $6.19 billion, wearables $7.88 billion, and services $30.74 billion. Overall, Apple enjoyed $109.42 billion in revenue during the quarter.
- iPhone revenue of $54.25 billion, up from $44.6 billion a year ago.
- Mac revenue of $10.35 billion compared to $8.05 billion a year ago.
- iPad revenue of $6.19 billion, down from $6.58 billion a year ago.
- Wearables revenue of $7.88 billion, up from $7.4 billion.
- Services revenue of $30.74 billion, up from $27.4 billion a year ago.
Revenue rose in every geographic segment, setting June quarter records across all regions.
- Americas: $45.78 billion
- Europe: $29.39 billion
- Japan: $6.55 billion
- Asia Pacific: $8.87 billion
- Greater China: $18.8 billion
Thursday’s earnings report confirmed investor fears that Apple will be hit by an industry-wide memory chip shortage, which the company had already blamed for a rare 20 per cent price increase on MacBooks and iPads in June — and gave little insight into how long the drought could last.
Cook said supply chain constraints in the three months to June were mainly due to higher-than-expected demand for the iPhone and Mac computers, with manufacturing capacity for Apple’s chips unable to keep up.
But memory chip prices were now starting to bite, Cook said, and “could drive an increasing impact on our business” into the end of the year.
Cook reiterated the difficulty of relying on three suppliers of high-end DRam memory — Micron, SK Hynix and Samsung — and said an additional supplier would help.
Apple said to expect revenue for the current quarter to rise 9% to 11% from the prior year despite a challenging foreign exchange headwind and supply constraints for the iPhone, Mac and iPad that are up significantly from the March-to-June quarter.
