Apple reported results for its fiscal third quarter on Thursday, and it was the company’s biggest June quarter ever. Revenue came in at a whopping $109.4 billion US, up 16 per cent from the same quarter last year, with earnings of $2.02 per share, a 29 per cent jump.
The iPhone did most of the heavy lifting, as expected. Sales hit $54.3 billion, up 22 per cent year over year, which is a big number for what is usually Apple’s slowest quarter of the year. Mac had a strong run too at $10.4 billion, up 29 per cent. Services set another record at $30.7 billion, up 12 per cent.
Not everything grew, as the iPad slipped to $6.2 billion from $6.6 billion a year ago, a six per cent decline. Cook called the iPad revenue drop a “tough compare” against the same period last year, when the company saw a surge in sales following the launch of its budget-minded A16 iPad, speaking to Reuters.
Wearables, Home and Accessories edged up six per cent to $7.9 billion.
Every region grew by double digits or close to it, with Greater China the highlight at $18.8 billion, up 22 per cent. Europe rose 22 per cent to $29.4 billion, the Americas 11 per cent to $45.8 billion, Japan 13 per cent to $6.6 billion, and the rest of Asia Pacific 16 per cent to $8.9 billion.
Gross margin landed at 50.1 per cent, though about two percentage points of that came from tariff refunds. Strip those out and the underlying margin is closer to 48 per cent. The refunds also added 11 cents to earnings per share, so the 29 per cent EPS growth is flattered somewhat.
“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” said Tim Cook, Apple’s CEO. “At WWDC26, we were thrilled to introduce the all-new Siri AI, alongside all of Apple’s latest software innovations and important new child safety features.”
“We are very pleased with our record business performance during the quarter, which set new June quarter records for both EPS and operating cash flow,” said Kevan Parekh, Apple’s CFO. “Our installed base of active devices also reached a new all-time high across all major product categories and geographic segments.”
Research and development spending jumped to $11.7 billion for the quarter, up 32 per cent from a year ago, which is a steep increase and lines up with Apple’s push on Siri and AI. Inventories also nearly doubled since September, sitting at $11.1 billion versus $5.7 billion, likely reflecting the memory and storage shortage that has already pushed Mac and iPad prices up.
Apple’s board declared a dividend of $0.27 per share, payable August 13 to shareholders of record as of August 10.
In an interview with Reuters, Cook stated that an industry-wide shortage of advanced chipmaking technology constrained supply during the third quarter.
The shortage affected the Mac lineup, where strong demand for models like the entry-level MacBook Neo and high-end MacBook Pro drove sales up 29 per cent despite higher prices. Cook explained that product demand exceeded expectations while the advanced chip supply chain lacked the flexibility to adapt.
This was also Tim Cook’s last earnings report as CEO. John Ternus takes over on September 1, just ahead of the next iPhone launch. Stay tuned for the earnings call at 2pm PT/5pm ET to hear Cook’s final words as the leader of Apple.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
