Last night, Apple revealed its financial outcomes for the fiscal third quarter of 2026, covering the months of April, May, and June. The company set a new record for a spring quarter, posting revenues of $109.42 billion, up from $94.04 billion in the same period last year—an increase of 16.4%. Profits also rose significantly to $29.79 billion, up from $23.43 billion a year ago, marking a 27.1% increase.
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Financial Highlights and Gross Margin Details
The gross margin improved from 46.5% to 50.1%. However, it’s important to note that this was partially due to a customs duty refund which accounted for 2% of the profits. This gross margin spans the entire company and includes its services. For products alone, the gross margin stood at 40.1%.
Performance by Product
Breaking it down by product, the iPad saw a decline of 5.9% to $6.2 billion, lacking new releases to boost sales. The miscellaneous category of other products, which includes AirPods, Beats, Apple Watch, Apple TV, HomePod, Vision Pro, and various accessories, saw an increase of 6.5% to $7.9 billion. Services continued their upward trajectory, growing 12.1% to $30.7 billion. The iPhone experienced a substantial surge of 21.7% to $54.3 billion. Lastly, the Mac benefited greatly from the renewal of its laptop lines, including the launch of the MacBook Neo, with a rise of 28.7% to $10.4 billion.
Geographical Performance
Geographically, all regions showed positive growth. The Americas grew by 11.1% to $45.8 billion, Europe by 22.4% to $29.4 billion, and China also by 22.4% to $18.8 billion. Japan increased by 13.4% to $6.6 billion, and the rest of the Asia Pacific by 15.6% to $8.9 billion.
Leadership Transition
This earnings presentation was Tim Cook’s last as he announced his retirement effective September 1st, passing the leadership baton to John Ternus. At the end of the CFO Kevan Parekh’s presentation, CEO Tim Cook said, “I just wanted to take a moment to thank everyone. Whether it’s our shareholders—especially those long-standing ones who have trusted us for so many years—or the analysts who monitor our business closely. I am extremely excited for John to assume his new role and lead Apple into its next era. He is truly a unique individual, and there is no one better qualified to head the company. I have complete confidence in his leadership, our executive team, and the incredible people at Apple who are committed to enriching our user’s lives around the world. A bright future lies ahead, and I have never been more optimistic. So, thank you all.”
Outlook for the Next Quarter
For the upcoming quarter, Apple expects revenue growth between 9% and 11%, though supply chain constraints and currency fluctuations may impact iPhone growth. The gross margin is anticipated to normalize between 47% and 48%, with 1% attributed to the customs duty refund.
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Ethan Rivers focuses on Android smartphones, emerging mobile platforms, and operating systems. With a critical yet fair perspective, he evaluates devices on performance, design, and ecosystem compatibility.