Q3 Earnings Release: AAPL

Jul 30

This quarter marks a historic transition for Apple as Tim Cook delivers his final earnings release before becoming Executive Chairman, handing the CEO reins to John Ternus.

While total net income surged by $6.4 billion YoY to $29.8 billion—easily beating the $27.5 billion market consensus—the underlying details reveal a mixed bag. Apple missed several key segment estimates, notably in Services revenue and operations in Greater China, though iPhone sales managed a slight beat.

The consolidated income statement below includes consensus estimates for direct comparison.

Apple Inc. (AAPL) — Preliminary Q3 FY2026 | Aperture Insights

SEC Form 8-K · Reported results · Fiscal Q3 2026

Apple Inc.AAPL

Aperture Insights · financial statement analysis · O. T. Nnamadim, CPA

Fiscal 2026 third quarter · three months ended June 27, 2026

Total net sales

$109.42B^*

Net income

$29.8B^*

Est. $27.5B · +2.3B

Diluted EPS

$2.02^*

Est. $1.89 · +0.13

Gross margin

50.1%^*

PY 46.5%

Operating margin

32.6%^*

PY 30.0%

Net margin

27.2%^*

PY 24.9%

Income statement summary

A summary reconciling net sales to net income, with a breakout of the major expense categories — each shown in absolute dollars and as a share of net sales.

Consensus net sales$108.8BConsensus diluted EPS$1.89

Cost of sales$54.6B49.9%

R&D$11.7B10.7%

SG&A$7.3B6.7%

Taxes & other$5.9B5.4%

Net income$29.8B27.2%

Condensed income statement

Reported results against the pre-print estimate and the prior-year period (Jun 28, 2025), with year-over-year dollar and percentage variance.

($ in billions unless noted)	Jun 27, 2026 Estimate	Jun 27, 2026^* Actual	Jun 28, 2025 Prior year	Δ YoY $	Δ YoY %
Total net sales	108.8	109.4^*	94.0	+15.4	+16.4%
Cost of sales	56.6	54.6^*	50.3	+4.3	+8.6%
Gross profit	52.2	54.8^*	43.7	+11.1	+25.3%
Research & development	11.3	11.7^*	8.9	+2.9	+32.3%
Selling, general & administrative	7.7	7.3^*	6.7	+0.7	+10.5%
Total operating expenses	18.9	19.1^*	15.5	+3.6	+22.9%
Operating income	33.3	35.7^*	28.2	+7.5	+26.6%
Other income/(expense), net	-0.1	0.6^*	-0.2	+0.7
Income before taxes	33.1	36.3^*	28.0	+8.2	+29.4%
Provision for income taxes	5.6	6.5^*	4.6	+1.9	+40.9%
Net income	27.5	29.8^*	23.4	+6.4	+27.1%
Diluted EPS	1.89	2.02^*	1.57	+0.45	+28.7%

Estimate column: Street consensus for net sales and diluted EPS (net sales $108.8B · diluted EPS $1.89); other lines are guidance-implied. Actual figures are Apple’s reported Q3 FY2026 results.

Revenue by segment

Net sales by product category and by reportable geographic segment. Consensus marks (▯) show the Street estimate where published.

Product & service · total $109.4B

Products

$78.7B

Services

$30.7B

iPhoneest $53.5B$54.3B^*49.6%

Mac$10.4B^*9.5%

iPad$6.2B^*5.7%

Wearables, Home and Accessories$7.9B^*7.2%

Servicesest $31.3B$30.7B^*28.1%

Geography · total $109.4B

Americas$45.8B^*41.8%

Europe$29.4B^*26.9%

Greater Chinaest $19.5B$18.8B^*17.2%

Japan$6.6B^*6.0%

Rest of Asia Pacific$8.9B^*8.1%

Ten-quarter trend

Total net sales by quarter (full bar), with net income shown as the highlighted portion of each bar — so both the top line and the profit within it are visible across the last ten quarters.

90.8

Q2 ’24

85.8

Q3 ’24

94.9

Q4 ’24

124.3

Q1 ’25

95.4

Q2 ’25

94.0

Q3 ’25

102.5

Q4 ’25

143.8

Q1 ’26

111.2

Q2 ’26

109.4

Q3 ’26^*

Net income Rest of net sales Latest quarter (8-K)

Latest quarter (Q3 FY2026) reported from the 8-K: net sales $109.4B (above the ≈$108.8B estimate) and net income $29.8B (above the ≈$27.5B estimate).

Ozoemena Nnamadim