Apple revenue and profit hit June-quarter records; CEO succession, supply caution trigger over 8% after-hours

Apple Inc. reported revenue of $109.417 billion for its fiscal 2026 third quarter ended 27 June 2026, a 16.4% year-on-year increase and a record for the period. Net profit climbed 27% to $29.789 billion; diluted earnings per share rose 29% to $2.02, including a one-time $0.11 gain from a U. S. tariff rebate. Gross margin reached 50.1%, with the rebate contributing about two percentage points; excluding that benefit, underlying gross margin was approximately 48.1%. Operating cash flow set a June-quarter record. Research and development spending grew 32.3% to $11.729 billion.

By product, iPhone revenue rose 21.7% to $54.252 billion, a June-quarter record, as high-end Pro models raised the average selling price. Mac revenue jumped 28.7% to $10.352 billion, driven by M5-series MacBook Pro and MacBook Air laptops and the entry-level MacBook Neo; Mac unit sales in Greater China and emerging markets such as Southeast Asia also hit June-quarter highs. iPad revenue declined 5.9% to $6.191 billion, pressured by longer tablet replacement cycles. Wearables, Home and Accessories revenue increased 6.5% to $7.883 billion. Services revenue grew 12% to $30.739 billion, slowing from the 16% pace of the prior quarter, with paid subscriptions surpassing 1.5 billion.

Regionally, Greater China revenue rose 22% to a record $18.816 billion. Americas revenue was $45.78 billion, up 11%; Europe $29.4 billion, up 22%; Japan $6.55 billion, up 13%; and the rest of Asia-Pacific $8.87 billion, up 16%. Global active Apple devices exceeded 2.5 billion.

Chief Financial Officer Kevin Parek warned that persistently rising memory chip prices and insufficient advanced-node chip capacity will significantly worsen supply constraints, affecting iPhone, Mac and iPad availability.

On the earnings call, Tim Cook confirmed he will officially step down as CEO on 1 September 2026, to be succeeded by John Ternus, senior vice president of hardware. Cook said the transition is proceeding smoothly and noted this was his last earnings call. Following the release, Apple shares tumbled more than 8% in after-hours trading, erasing over $300 billion in market capitalisation. Apple also declared a dividend of $0.27 per share, payable on 13 August 2026 to shareholders of record as of 10 August.