Apple reported record fiscal third-quarter results for 2026, with revenue reaching $109.4 billion during the three months ended June 27. Revenue increased 16% from $94 billion in the same quarter last year, supported by strong iPhone, Mac, and Services sales.
The June quarter also produced record earnings per share and operating cash flow. Apple reported diluted earnings of $2.02 per share, up 29% year over year, while net income climbed to $29.8 billion.
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Apple Q3 2026 earnings overview
| Financial metric | Q3 2026 | Q3 2025 | Year-over-year change |
|---|---|---|---|
| Total revenue | $109.4 billion | $94.0 billion | Up 16% |
| Product revenue | $78.7 billion | $66.6 billion | Up 18% |
| Services revenue | $30.7 billion | $27.4 billion | Up 12% |
| Gross margin | $54.8 billion | $43.7 billion | Up 25% |
| Operating income | $35.7 billion | $28.2 billion | Up 27% |
| Net income | $29.8 billion | $23.4 billion | Up 27% |
| Diluted EPS | $2.02 | $1.57 | Up 29% |
Apple’s company gross margin reached 50.1% during the quarter. However, this included a favorable impact of around two percentage points from tariff refunds. The refunds also added approximately $0.11 to diluted earnings per share.
Without that temporary benefit, Apple’s underlying gross margin and earnings growth would have been lower, although the company still recorded strong gains across most of its major businesses.
iPhone revenue rises nearly 22%
The iPhone remained Apple’s largest source of revenue, generating $54.3 billion during the quarter. That figure increased nearly 22% from $44.6 billion a year earlier and represented almost half of Apple’s total quarterly sales.
Mac revenue also recorded strong growth, rising nearly 29% to $10.4 billion. Services generated a record $30.7 billion, up 12% from the previous year.
Apple’s product revenue breakdown was as follows:
| Product category | Q3 2026 revenue | Q3 2025 revenue | Change |
|---|---|---|---|
| iPhone | $54.3 billion | $44.6 billion | Up 21.7% |
| Mac | $10.4 billion | $8.0 billion | Up 28.7% |
| iPad | $6.2 billion | $6.6 billion | Down 5.9% |
| Wearables, Home and Accessories | $7.9 billion | $7.4 billion | Up 6.5% |
| Services | $30.7 billion | $27.4 billion | Up 12.1% |
The iPad was the only major category to report lower revenue, falling approximately 6% year over year. Wearables, Home and Accessories returned to growth, although its 6.5% increase remained below the gains recorded by the iPhone and Mac businesses.
Apple said iPhone, Mac, and Services revenue each set new June-quarter records. The company’s installed base of active devices also reached an all-time high across every major product category and geographic segment.
Revenue grows across every geographic market
Apple posted year-over-year growth in each of its five geographic segments, including a notable improvement in Greater China.
| Geographic segment | Q3 2026 revenue | Annual change |
|---|---|---|
| Americas | $45.8 billion | Up 11.1% |
| Europe | $29.4 billion | Up 22.4% |
| Greater China | $18.8 billion | Up 22.4% |
| Japan | $6.6 billion | Up 13.4% |
| Rest of Asia Pacific | $8.9 billion | Up 15.6% |
Greater China revenue rose from $15.4 billion to $18.8 billion, reversing some of the pressure Apple has faced in the region. Europe matched China’s percentage growth and remained Apple’s second-largest geographic segment behind the Americas.
Apple increases research and development spending
Apple spent $11.7 billion on research and development during the quarter, up 32% from $8.9 billion last year. Total operating expenses increased to $19.1 billion, compared with $15.5 billion in Q3 2025.
The higher investment comes as Apple expands its work across artificial intelligence, custom silicon, software platforms, health features, and new device categories. During its earnings announcement, the company also highlighted the new Siri AI capabilities and software updates introduced at WWDC 2026.
Cash flow, share buybacks, and dividend
During the first nine months of fiscal 2026, Apple generated approximately $117 billion in operating cash flow, compared with $81.8 billion during the same period last year.
The company spent $62.1 billion repurchasing its common stock and paid $11.8 billion in dividends and dividend equivalents. Apple ended the period with $39.5 billion in cash, cash equivalents, and restricted cash.
Apple’s board declared a quarterly cash dividend of $0.27 per share. The dividend will be paid on August 13, 2026, to shareholders recorded at the close of business on August 10.
Overall, Apple’s Q3 2026 earnings showed broad growth across products, services, and international markets. Strong iPhone and Mac demand helped revenue cross $109 billion, while higher Services sales, improved profitability, and rising investment in research strengthened the company’s record June-quarter performance.
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