Apple Inc. (AAPL): Results of Operations and Financial Condition
Apple Inc. (AAPL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Apple reports third quarter results June quarter records for total company revenue and EPS iPhone, Mac and Services revenue set new June quarter records CUPERTINO, CALIFORNIA — Apple ® today announced financial results for its fiscal 2026 third quarter ended June 27,
How this was made
The 30-second read
Why it matters
Traders can update models immediately using the reported revenue, EPS, gross margin, segment/category sales, and the declared cash dividend with record and payable dates.
Market read
A primary earnings disclosure plus a capital return action (dividend) provides actionable inputs for short-term positioning and valuation recalibration.
What to watch
Installed-base growth and the tariff-refund magnitude (about 2pp gross margin and $0.11 EPS) should be separated from underlying demand to assess sustainability.
June quarter records for total company revenue and EPS; iPhone, Mac and Services revenue set new June quarter records.
Quarterly revenue was $109.4 billion, up 16 percent year over year, while diluted earnings per share was $2.02, up 29 percent year over year. Gross margin was 50.1 percent and benefited by approximately 2 percentage points from tariff refunds.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Products net salesGAAP | $78,678 million | – | – |
| Services net salesGAAP | $30,739 million | – | – |
| Total net salesGAAP | $109,417 million | – | up 16 percent year over year |
| Products cost of salesGAAP | $47,153 million | – | – |
| Services cost of salesGAAP | $7,494 million | – | – |
| Total cost of salesGAAP | $54,647 million | – | – |
| Gross marginGAAP | $54,770 million | – | – |
| Company gross marginGAAP | 50.1 percent | – | – |
| Research and developmentGAAP | $11,729 million | – | – |
| Selling, general and administrativeGAAP | $7,346 million | – | – |
| Total operating expensesGAAP | $19,075 million | – | – |
| Operating incomeGAAP | $35,695 million | – | – |
| Other income/(expense), netGAAP | $572 million | – | – |
| Income before provision for income taxesGAAP | $36,267 million | – | – |
| Provision for income taxesGAAP | $6,478 million | – | – |
| Net incomeGAAP | $29,789 million | – | – |
| Basic earnings per shareGAAP | $2.03 | – | – |
| Diluted earnings per shareGAAP | $2.02 | – | up 29 percent year over year |
| Shares used in computing basic earnings per shareGAAP | 14,656,110 | – | – |
| Shares used in computing diluted earnings per shareGAAP | 14,714,676 | – | – |
| Tariff refunds favorable impact on company gross marginother | approximately 2 percentage points | – | – |
| Tariff refunds favorable impact on diluted earnings per shareother | $0.11 | – | – |
| Cash generated by operating activitiesGAAP | $116,996 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AmericasThe Company stated that every geographic segment delivered double-digit revenue growth. | $45,781 million | – | – |
| EuropeThe Company stated that every geographic segment delivered double-digit revenue growth. | $29,395 million | – | – |
| Greater ChinaThe Company stated that every geographic segment delivered double-digit revenue growth. | $18,816 million | – | – |
| JapanThe Company stated that every geographic segment delivered double-digit revenue growth. | $6,554 million | – | – |
| Rest of Asia PacificThe Company stated that every geographic segment delivered double-digit revenue growth. | $8,871 million | – | – |
| iPhoneSet a new June quarter revenue record; the Company stated iPhone delivered double-digit revenue growth. | $54,252 million | – | – |
| MacSet a new June quarter revenue record; the Company stated Mac delivered double-digit revenue growth. | $10,352 million | – | – |
| iPadNo category-specific driver disclosed. | $6,191 million | – | – |
| Wearables, Home and AccessoriesNo category-specific driver disclosed. | $7,883 million | – | – |
| ServicesSet a new June quarter revenue record; the Company stated Services delivered double-digit revenue growth. | $30,739 million | – | – |
Capital returns
- Apple’s board of directors declared a cash dividend of $0.27 per share of the Company’s common stock.
- The dividend is payable on August 13, 2026, to shareholders of record as of the close of business on August 10, 2026.
- Repurchases of common stock were $(62,094) million for the nine months ended June 27, 2026, compared with $(70,579) million for the nine months ended June 28, 2025.
- Payments for dividends and dividend equivalents were $(11,778) million for the nine months ended June 27, 2026, compared with $(11,559) million for the nine months ended June 28, 2025.
What drove it
- The Company reported its strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services and in every geographic segment.
- iPhone, Mac and Services each set new June quarter revenue records.
- The installed base of active devices reached a new all-time high across all major product categories and geographic segments.
- Company gross margin included a favorable impact of approximately 2 percentage points from tariff refunds.
- Diluted earnings per share included a favorable impact of $0.11 from tariff refunds.
Concerns
- Tariff refunds favorably affected company gross margin by approximately 2 percentage points and diluted earnings per share by $0.11.
- iPad net sales were $6,191 million in the fiscal 2026 third quarter, compared with $6,581 million in the fiscal 2025 third quarter.
- Wearables, Home and Accessories net sales were $7,883 million in the fiscal 2026 third quarter, compared with $7,404 million in the fiscal 2025 third quarter, with no category-specific driver disclosed.
- Research and development expense was $11,729 million, compared with $8,866 million in the fiscal 2025 third quarter.
What to watch
- Whether the favorable impact of tariff refunds on company gross margin and diluted earnings per share recurs.
- Future performance of iPad and Wearables, Home and Accessories, neither of which was identified as a June quarter revenue-record category.
- Execution of the all-new Siri AI and the software innovations and child safety features introduced at WWDC26.
- Future trends in the active-device installed base, which reached a new all-time high across all major product categories and geographic segments.
Balance sheet and cash flow
- Cash and cash equivalents were $39,544 million as of June 27, 2026, compared with $35,934 million as of September 27, 2025.
- Current marketable securities were $22,855 million and non-current marketable securities were $84,118 million as of June 27, 2026.
- Commercial paper was $1,997 million, current term debt was $11,007 million, and non-current term debt was $71,340 million as of June 27, 2026.
- Total assets were $383,266 million, total liabilities were $275,746 million, and total shareholders’ equity was $107,520 million as of June 27, 2026.
- Cash generated by operating activities was $116,996 million for the nine months ended June 27, 2026, compared with $81,754 million for the nine months ended June 28, 2025.
- Payments for acquisition of property, plant and equipment were $(6,799) million for the nine months ended June 27, 2026, compared with $(9,473) million for the nine months ended June 28, 2025.
- Cash generated by/(used in) investing activities was $(18,811) million and cash used in financing activities was $(94,575) million for the nine months ended June 27, 2026.
- Cash, cash equivalents, and restricted cash and cash equivalents, ending balances were $39,544 million as of June 27, 2026.
Analysis
Apple delivered a record June quarter, reporting total net sales of $109,417 million versus $94,036 million in the prior-year quarter. The release characterized this as 16 percent year-over-year growth. Products net sales were $78,678 million and Services net sales were $30,739 million. Management said iPhone, Mac and Services each delivered double-digit revenue growth, and all geographic segments also delivered double-digit growth.
The reported product-category data show iPhone at $54,252 million, Mac at $10,352 million and Services at $30,739 million, all June quarter records according to the release. iPad was $6,191 million compared with $6,581 million a year earlier. Wearables, Home and Accessories was $7,883 million compared with $7,404 million. Across geography, Americas contributed $45,781 million, Europe $29,395 million and Greater China $18,816 million.
Profitability strengthened materially in the reported statements. Gross margin was $54,770 million, operating income was $35,695 million and net income was $29,789 million, compared with $43,718 million, $28,202 million and $23,434 million, respectively, in the prior-year quarter. Company gross margin was 50.1 percent, but included a favorable impact of approximately 2 percentage points from tariff refunds. Diluted earnings per share was $2.02, up 29 percent year over year, including a favorable impact of $0.11 from tariff refunds.
Operating expenses increased, with research and development at $11,729 million and selling, general and administrative expense at $7,346 million. The filing also shows nine-month cash generated by operating activities of $116,996 million, compared with $81,754 million a year earlier. Apple returned capital through $(62,094) million of common-stock repurchases and $(11,778) million of dividend and dividend-equivalent payments during the nine-month period, and declared a $0.27 per-share cash dividend.
The balance sheet reported $39,544 million of cash and cash equivalents, $22,855 million of current marketable securities and $84,118 million of non-current marketable securities as of June 27, 2026. Commercial paper, current term debt and non-current term debt were $1,997 million, $11,007 million and $71,340 million, respectively. The release did not provide forward financial guidance, so the next reported outlook and the persistence of tariff-refund benefits are central items for investors to monitor.
Management, verbatim
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.
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.
Tim Cook, Apple’s CEO
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.
Kevan Parekh, Apple’s CFO
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate and other metrics was not provided.
- Previous-release outlook was not provided.
- Quarterly operating cash flow was not provided; the filing provided nine-month cash generated by operating activities only.
- Free cash flow was not reported.
- Quarterly common-stock repurchases and quarterly dividend payments were not reported; the filing provided nine-month amounts only.
- Non-GAAP revenue, gross margin, operating income, net income and earnings per share were not reported.
- Prior-quarter comparisons for reported metrics were not provided.
- Percentage changes for individual geographic segments and product categories were not printed.
- A tax rate was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Apple’s SEC Form 8-K furnishing Item 2.02, with Exhibit 99.1 containing the company’s fiscal 2026 third-quarter results for the June quarter.
Ticker impact
Apple reports fiscal Q3 results with revenue of $109.4B (+16% YoY) and diluted EPS of $2.02 (+29% YoY), plus tariff-refund tailwinds.
Likely supportive for the stock versus pre-print expectations, with upside bias if investors view tariff-refund impact as durable.
The filing provides concrete quarterly revenue, EPS, gross margin, and a declared cash dividend with a specific payable date, which are direct inputs to valuation and near-term sentiment.
Market effects
Reinforces large-cap consumer tech demand and services momentum, potentially influencing sentiment for hardware-plus-services peers.
Highlights growth across geographic segments, including Greater China and Europe, which can affect regional risk appetite for tech earnings.
Tariff-refund impact may shift how markets model trade-policy effects on multinational tech gross margins.
Counterpoint
Tariff-refund and one-time margin/EPS benefits may not persist, so the market may discount the quality of earnings.
Key entities
- issuerApple Inc.
Filed the 8-K with Q3 2026 results, including revenue/EPS figures, margin details, and a cash dividend declaration.
- executiveTim Cook
CEO quoted on record June-quarter performance and product/software initiatives.
- executiveKevan Parekh
CFO quoted on record EPS and operating cash flow and installed-base growth.
