**Apple Inc. Reports Strong Fiscal Third-Quarter Results Amid Supply Constraints**
Apple Inc. (AAPL) announced revenues of $109.4 billion for the fiscal third quarter ended June 27, 2026, with a net income of $29.8 billion and earnings per share of $2.02. Though demand for iPhone and Mac products fueled strong performance, the company faces supply chain pressures primarily due to advanced semiconductor node constraints. CFO Kevan Parekh projected a fiscal fourth-quarter revenue growth of 9% to 11% year over year, despite challenges from foreign exchange fluctuations and increased supply limitations.
**iPhone and Services Drive Revenue Growth**
iPhone revenues reached $54.3 billion, marking a 22% increase year over year, while Mac revenues climbed 29% to $10.4 billion. Apple’s services sector contributed $30.7 billion, up 12% from the previous year, with records across cloud services and the App Store. Despite rising memory costs impacting margins, the company reported a gross margin of 50.1% for the June quarter, expecting it to drop to between 47% and 48% in the upcoming quarter.
**Focus on AI and Future Leadership**
CEO Timothy Cook emphasized the advancement of Apple’s AI initiatives, integrating private AI capabilities across its product ecosystem. He also announced his upcoming retirement and expressed confidence in John Ternus as his successor. The company is committed to ongoing investments in research and development, totaling $147 billion in cash and marketable securities, while returning $33 billion to shareholders.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
