Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Apple's fiscal third quarter was characterized by robust demand for iPhone Pro models and Services, propelling revenue growth across most regions and product lines. Gross margin crossed the 50% threshold for the first time, aided by a favorable product mix and tariff refunds, though management flagged intensifying cost pressures from advanced semiconductors and memory components. The company significantly ramped up R&D spending by 32% to support artificial intelligence initiatives and introduced Siri AI alongside new operating systems. Despite strong operating cash flow, the outlook remains clouded by ongoing component supply constraints and trade policy uncertainty, which could weigh on future profitability. The board continues to prioritize shareholder returns, with $25.8 billion in share repurchases and $4.0 billion in dividends paid during the period.
Revenue
$109.42B
+16.36% YoY
EPS (Diluted)
$2.02
+28.66% YoY
Gross Margin
50.1%
+3.6 pts YoY
Operating Income
$35.7B
+26.57% YoY
Source: SEC XBRL
Apple (AAPL) reported Q3 FY2026 revenue of $109.42B, up 16.4% year over year. Operating margin was 32.6%, up 2.6 points from 30.0% a year earlier. AAPL's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.91 | 1.93 | Miss -0.9% |
| Jun 2026This filing | 1.91 | 2.05 | Miss -6.9% |
| Dec 2025 | 2.01 | 1.99 | Beat +1.1% |
| Sep 2025 | 1.85 | 1.81 | Beat +2.4% |
Adjusted (non-GAAP) EPS of $1.91 versus the $2.05 analyst consensus — a -6.9% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.02.
5 product lines · 5 regions · SEC XBRL
Product and service lines total $109.42B, which is the $109.42B of consolidated revenue on the income statement.
Revenue across regions totals $109.42B, which is the $109.42B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure AAPL itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Products gross margin jumped 5.6 percentage points year-over-year, driven by a favorable product mix and tariff refunds recognized as a reduction of cost of sales, though partially offset by higher memory costs.
Source: 10-Q Item 2 MD&A
R&D expense rose 32% to $11.7 billion, primarily due to higher infrastructure costs for artificial intelligence and increased headcount, underscoring Apple's commitment to AI.
Source: 10-Q Item 2 MD&A
Apple announced iOS 27, macOS 27 Golden Gate, iPadOS 27, watchOS 27, visionOS 27, and tvOS 27, and introduced Siri AI, signaling upcoming product innovations.
Source: 10-Q Item 2 MD&A
Management warns that industry-wide shortages of advanced semiconductors, NAND, and DRAM are driving up costs and may materially impact revenue and gross margin in the near term.
Source: 10-Q Item 2 MD&A
Apple returned $29.8 billion to shareholders via $25.8 billion in repurchases and $4.0 billion in dividends, while fully paying the remaining $8.8 billion of the repatriation tax liability.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 2 high, 3 medium, 0 low
The company faces limited sources for critical components like advanced semiconductors, NAND, and DRAM, leading to supply shortages and significant pricing pressure. Demand for cloud computing and AI infrastructure further strains compute resource availability, threatening product delivery and margins.
Source: 10-Q Item 1A Risk Factors
Ongoing antitrust investigations and legal actions in the U.S., EU, and other markets could force changes to App Store commissions, search licensing deals (e.g., Google), and interoperability requirements under the DMA, potentially materially reducing revenue and increasing compliance costs.
Source: 10-Q Item 1A Risk Factors
The attractiveness of Apple's hardware depends on a robust ecosystem of third-party apps; if developers prioritize competing platforms due to Apple's minority market share, app availability and quality could suffer, reducing demand for Apple products.
Source: 10-Q Item 1A Risk Factors
Increasing global regulations on personal data collection, use, and transfer (e.g., in China and the EU) impose complex compliance requirements. Non‑compliance or perceived failures could result in fines, operational restrictions, and reputational damage, especially with AI features handling sensitive data.
Source: 10-Q Item 1A Risk Factors
New and evolving laws mandating enhanced protections for minors and mandatory age verification could require significant modifications to Apple's products and services, increasing costs and operational complexity, with potential penalties for non‑compliance.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 109.42 $B | 94.04 $B | +16.36% |
Cost of Revenue $B | 54.65 $B | 50.32 $B | +8.60% |
Gross Profit $B | 54.77 $B | 43.72 $B | +25.28% |
Operating Income $B | 35.70 $B | 28.20 $B | +26.57% |
Net Income $B | 29.79 $B | 23.43 $B | +27.12% |
EPS (Basic) $ | 2.03 $ | 1.57 $ | +29.30% |
EPS (Diluted) $ | 2.02 $ | 1.57 $ | +28.66% |
R&D Expense $B | 11.73 $B | 8.87 $B | +32.29% |
SG&A Expense $B | 7.35 $B | 6.65 $B | +10.47% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Apple delivered a standout Q2 FY2026 with revenue surging 16.6% YoY to $111.2B and net income climbing 19.4% to $29.6B, driven by record gross margins of 49.3% and accelerating R&D investment of $11.4B.
Apple delivered a strong fiscal Q4 2025, with revenue surging 15.7% YoY to $143.8B, net income rising 15.9% to $42.1B, and operating cash flow jumping 80.1% to $53.9B, reflecting broad-based growth and expanding margins.
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