Apple delivered better-than-expected FY2026 third-quarter results, but investor attention shifted quickly to a softer outlook for the next quarter. Revenue, EPS, iPhone revenue and Mac revenue all beat expectations, while iPhone, Mac and Services each posted record June-quarter revenue. Even so, management’s guidance for the coming quarter came in below consensus, and the stock fell sharply at one point after the report.
Quarterly results came in ahead of expectations
According to the figures cited in the report, Apple posted revenue of $109.417 billion for the quarter, ahead of the $108.853 billion market estimate. Earnings per share were $2.02, above the expected $1.89.
By segment, iPhone, Mac and Services all set June-quarter records. Mac was the standout. Revenue reached $10.352 billion, far above the $8.619 billion estimate.
Gross margin was reported at 50.1%, though that number included a one-time benefit of roughly 2 percentage points tied to tariff refunds. Excluding that item, gross margin was about 48.1%, still slightly ahead of expectations of around 47.9%.
Services and iPad missed estimates
Two areas fell short of market expectations: Services and iPad.
- Services revenue was $30.739 billion, below the $31.359 billion estimate.
- iPad revenue was $6.191 billion, short of the expected $6.890 billion.
Services still set a June-quarter record, but on a relative basis it was one of only two businesses in the report that missed expectations.
Guidance for next quarter came in light
The main pressure point was the company’s outlook. Management said supply-chain constraints tied to advanced-process chips and memory costs would “significantly intensify,” affecting iPhone, iPad and Mac.
Apple guided for next-quarter revenue growth of 9% to 11%, below the roughly 12% consensus. Gross margin guidance was 47% to 48%. The report said the stock dropped sharply at one point after earnings were released.
Focus shifts from record revenue to supply pressure
The quarter itself still showed solid momentum in Apple’s core businesses. iPhone, Mac and Services all reached record June-quarter revenue, pointing to continued strength across key segments.
At the same time, the headline gross margin figure of 50.1% needs context. Around 2 percentage points came from a one-off tariff refund. Excluding that benefit, gross margin was about 48.1%. That still beat expectations, but it was less striking than the headline figure suggested.
That helps explain the market reaction. The issue was not only what Apple had just reported, but what management said about the quarter ahead. With supply constraints expected to intensify and revenue growth guided at 9% to 11%, below prior expectations, the outlook became the central reason the shares weakened after what was otherwise a record-setting report.
Other details cited in the report
The article also noted that this was Cook’s last earnings call before stepping down as CEO.
The original piece said the commentary came from MSX Research Institute’s daily U.S. stock and RWA market watch, and included a risk statement saying the material was for academic and research observation only and did not constitute investment advice.