◆ Inside the Latest Quarter (Q3 FY2026)

Apple (AAPL) — the variant view

A record June quarter whose margin was flattered by tariff refunds and whose guidance was cut by memory costs — and Apple's answer was $100 on every iPhone.

📈 AAPL valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Apple's June quarter of fiscal 2026 set records it did not need and exposed a cost it cannot yet control. Revenue rose sixteen percent to $109.4 billion, a record for the June quarter, with double-digit growth in every geographic segment1. The iPhone did most of the work, up twenty-two percent to $54.3 billion on higher sales of Pro models2, and the Mac was the surprise, up twenty-nine percent to $10.4 billion as the new MacBook Neo sold alongside the MacBook Pro3. The iPad was the one line that shrank, down six percent. Services grew twelve percent to $30.7 billion, its slowest pace in a year and short of what analysts expected, and Apple blamed currency4.

Q3 FY2026 net sales growth by line, year on year (%)+21.7%iPhone+28.7%Mac-5.9%iPad+6.5%Wearables+12.1%ServicesApple Form 10-Q, quarter ended 27 June 2026; red bar is a decline
Four of five lines grew in the June 2026 quarter, led by the Mac; iPad was the one that shrank.

The headline margin needs a footnote. Gross margin printed 50.1 percent, but about two points of it were refunds of tariffs Apple had already paid, and diluted earnings of $2.02 included eleven cents of the same windfall. Strip the refunds out and the margin sat in the middle of the 47.5-to-48.5 percent range Apple had guided. Research spending rose thirty-two percent to $11.7 billion, mostly infrastructure for artificial intelligence.

The guidance is where the quarter turned. Apple told investors to expect September-quarter revenue growth of nine to eleven percent and a gross margin of 47 to 48 percent, with about a point of tariff refunds still inside it, and said supply constraints and currency would hold the iPhone back. Tim Cook, on his last call as chief executive, said Apple had paid more for memory in each of the past three quarters and expected to pay more again; the shares fell more than six percent after hours.

The lesson for an owner is that the moat did its job and the cost structure did not. Demand was strong enough that supply, not buyers, set the limit, and Apple has since shown it will pass the memory bill on: in September, under its new chief executive John Ternus, it raised the starting price of every iPhone by $100 and launched the $1,999 iPhone Duo5. That is pricing power being used rather than admired. The December quarter will say whether it worked: a gross margin near 47 percent without refunds would mean the brand paid the memory bill, and anything well below it would mean the customer's patience has found its limit.

References
  1. ReportedJune 2026 quarter revenue rose 16% to $109.4 billion, a June-quarter record with double-digit growth in every geographic segment; gross margin 50.1% including about two points of tariff refunds; diluted EPS $2.02 including $0.11 of refunds.
    Apple Q3 FY2026 results release (Form 8-K, exhibit 99.1) — revenue $109.4B, up 16%; gross margin 50.1% including a favorable impact of approximately 2 percentage points from tariff refunds; diluted EPS $2.02; 'At WWDC26, we were thrilled to introduce the all-new Siri AI' — Quarter ended 27 June 2026 · publ. 30 July 2026 · source ↗
  2. ReportediPhone net sales rose 22% to $54,252M on higher sales of Pro models; iPad fell 6%; R&D rose 32% to $11,729M on infrastructure costs including AI.
    Apple Inc., Form 10-Q for the quarter ended 27 June 2026 — net sales $109,417M (+16%): iPhone $54,252M, Mac $10,352M, iPad $6,191M, Wearables, Home and Accessories $7,883M, Services $30,739M; Greater China $18,816M (+22%), Europe $29,395M (+22%); gross margin 50.1% (products 40.1%, services 75.6%), products margin up primarily due to mix and tariff refunds; research and development $11,729M (+32%, 11% of net sales), primarily higher infrastructure-related costs including investments in artificial intelligence; total deferred revenue $14.9B; 215 million shares repurchased for $61.8B in nine months — Quarter ended 27 June 2026 · publ. 31 July 2026 · source ↗
  3. ReportedMac revenue rose 29% to $10.4 billion on the MacBook Pro and MacBook Neo; without the tariff refunds the margin was mid-guidance; September-quarter guidance of 9-11% revenue growth and a 47-48% gross margin with about a point of refunds.
    MacRumors live coverage of Apple's Q3 FY2026 call (30 July 2026) — installed base above 2.5 billion; product margin 40.1% with a 2.5-point tariff-refund impact; September-quarter guidance: revenue growth of 9-11%, gross margin 47-48% with about 1% benefit from tariff refunds; Apple introduced a neural engine in 2017 — Q3 FY2026 call · publ. 30 July 2026 · source ↗
  4. ReportedServices rose 12% to $30.74 billion, below the $31.22 billion estimate, hurt by currency; Cook expects even higher memory costs; the shares slid more than 6% after hours.
    CNBC live coverage of Apple's Q3 FY2026 results (30 July 2026) — Services revenue up 12%; Cook said Apple has 1.5 billion paid subscriptions; gross margin guidance of 47%-48%; memory costs rising — Q3 FY2026 · publ. 30 July 2026 · source ↗
  5. ReportedIn September 2026, under new CEO John Ternus, Apple raised the starting price of every iPhone by $100 and launched the iPhone Duo at $1,999.
    CNN Business live coverage of Apple's 9 September 2026 event — CEO John Ternus, who took over from Tim Cook earlier in the month, revealed the foldable iPhone Duo, starting at $1,999 and topping out at $3,199; pre-orders from October 16, availability from October 23; iPhone 18 Pro from $1,199 and Pro Max from $1,299 against $1,099 and $1,199 for the iPhone 17 Pro models; older iPhones up $100 (iPhone 17 $899 from $799, 17e $699 from $599); a new leasing plan, Apple Upgrade — 9 September 2026 · publ. 9 September 2026 · source ↗
Sources
Generated September 19, 2026