Apple Q3 2026 Earnings Beat Estimates Despite Miss in Services Revenue
Apple reported its strongest June quarter ever, with revenue reaching $109.4 billion—up 16% year over year—and diluted earnings per share of $2.02, a 29% increase from the prior year. While iPhone and Mac sales exceeded expectations, services revenue fell short at $30.74 billion compared to analyst forecasts of $31.22 billion. iPad revenue also missed estimates, as did China region sales. Despite strong overall performance, Apple's stock dropped approximately 3-4% in extended trading following the report. The company attributed a portion of its financial success to tariff refunds that boosted gross margin by about 2%. CEO Tim Cook highlighted record growth across key product lines and geographic regions before stepping down later this year. However, ongoing supply chain issues—particularly shortages of memory chips and processors—are affecting production timelines for Macs and iPads.
Tickers: $AAPL
Topics: Apple iPhone sales Q3 earnings revenue growth services revenue miss