Apple's Record Q3 Revenue Up 15% to US$109.42 Billion; China Sales Up 22%
Apple reported record fiscal third-quarter revenue of US$109.417 billion, up 16.4% year over year, with net income of US$29.789 billion, up 27%, and diluted EPS of US$2.02, up 29%. Gross margin was 50.1%, including a 2-point tariff refund benefit; ex that, 48.1%. iPhone sales rose 21.7% to US$54.252 billion, while Greater China revenue hit a record US$18.82 billion, up 22%. The company guided Q4 gross margin to 47-48% and declared a US$0.27 dividend.
Apple released its fiscal third-quarter results for fiscal 2026 (quarter ended June 27) on July 30, 2026. Revenue for the quarter was US$109.417 billion, up 16.4% year over year. Net income was US$29.789 billion, up 27%, and diluted earnings per share were US$2.02, up 29%. Consolidated gross margin reached 50.1%, including a one-time impact of approximately 2 percentage points from US government tariff refunds; excluding that impact, the actual gross margin was approximately 48.1%. Revenue, net income, and earnings per share all set records for the company's June quarter.
Hardware was the core pillar driving growth in the quarter. iPhone revenue was US$54.252 billion, up 21.7% year over year, setting a record for the June quarter, with premium Pro models lifting the average selling price. Mac revenue was US$10.352 billion, up 28.7%, driven mainly by MacBook Neo and MacBook Pro models with the M5 chip. Mac sales in Greater China hit a quarterly record. iPad revenue was US$6.191 billion, down 5.9% year over year, making it the only hardware category to decline. Wearables, home, and accessories revenue was US$7.883 billion, up 6.5%.
The services segment's gross margin remained high at 75.6%, though growth slowed from 16% in the prior fiscal quarter and declined slightly sequentially. Revenue from the Americas, Europe, Japan, and other Asia-Pacific regions was US$45.78 billion, US$29.4 billion, US$6.55 billion, and US$8.87 billion, respectively, up 11%, 22%, 13%, and 16% year over year.
The company guided fourth-quarter gross margin to a range of 47% to 48%, with tariff refunds still contributing about 1 percentage point. Research and development spending reached US$11.729 billion in the quarter, up 32.3% year over year. As of the end of the quarter, there were more than 2.5 billion active Apple devices worldwide, and paid subscriptions surpassed 1.5 billion.
The quarter also marked Tim Cook's final earnings call as Apple's chief executive officer. He will officially step down as CEO on September 1, 2026, to be succeeded by John Ternus, senior vice president of hardware engineering, with Cook moving to the role of executive chairman of the board. Cook said during the call that the transition was proceeding smoothly. Apple also announced a cash dividend of US$0.27 per share, payable on August 13 to shareholders of record as of August 10. After the results were released, Apple's shares fell more than 8% in after-hours trading.