TL;DR — Apple posted record fiscal third-quarter revenue of $109.4 billion, up 16%, with iPhone revenue up 22% to $54.3 billion and Mac revenue up 29% — the best June quarter Apple has ever had. Services revenue, the segment Apple leans on to justify its valuation, grew just 12%, down from 16% the prior quarter and slightly below Apple’s own guidance. Shares fell about 4.5% after hours.
Apple reported fiscal third-quarter revenue of $109.4 billion, up 16% year over year, with diluted EPS of $2.02, up 29%. iPhone, Mac and Services all set new June-quarter records. iPhone revenue alone hit $54.3 billion, up 22%, and Mac revenue climbed 29% to $10.4 billion — the best June quarter Apple has ever reported for either product line. Shares still fell roughly 4.5% in after-hours trading. The reason wasn’t the hardware. It was Services, and what Apple said about the quarter ahead.
Hardware Had Its Best Quarter in Years
By hardware standards, this was about as strong a quarter as Apple has posted. Tim Cook called it “the most popular iPhone lineup we’ve ever had,” with record numbers of customers upgrading from older models. Greater China revenue grew 22.4%, with Mac sales hitting an all-time high in emerging markets — a notable reversal for a region that’s been a source of concern in prior quarters. Gross margin came in at 50.1%, though roughly 2 percentage points of that reflected a favorable tariff-refund impact rather than underlying pricing power.
The Segment That’s Supposed to Grow Faster
Services revenue reached $30.7 billion, up 12% year over year. That’s a record dollar figure and still a healthy growth rate for most companies. For Apple, it’s a deceleration — Services grew 16% the prior quarter — and analysts on the earnings call noted the 12% figure came in slightly below Apple’s own guidance, with foreign-exchange headwinds cited as the main driver. Services matters more than its revenue share suggests: it carries far higher margins than hardware, and it’s the segment Wall Street points to when justifying Apple’s valuation as something closer to a recurring-revenue software business than a phone maker.
- iPhone: $54.3 billion, up 22% — a genuine acceleration and a June-quarter record.
- Mac: $10.4 billion, up 29% — best June quarter on record, despite supply constraints.
- Services: $30.7 billion, up 12% — down from 16% growth the prior quarter, and below guidance.
Apple just had its best iPhone quarter in years. The stock fell anyway, because the market was pricing the one segment that didn’t accelerate.
Guidance Did the Rest of the Damage
Apple guided to 9–11% revenue growth for the September quarter — a clear deceleration from the 16% just reported. Combined with the Services slowdown, that guidance is what actually drove the after-hours decline; the hardware records were, in a sense, already priced in by the time the call ended. Apple is one of the six companies now absorbing roughly a third of every S&P 500 dollar, which means a guidance number that reads as merely fine anywhere else gets treated as a warning sign here.
Apple reports fiscal fourth-quarter results in late October, alongside the first full quarter of new iPhone sales following this cycle’s launch. The number to watch isn’t iPhone revenue, which is already accelerating. It’s whether Services growth recovers toward its historical mid-teens pace or keeps decelerating toward single digits.
Figures are from Apple’s official fiscal Q3 2026 earnings release and its Form 8-K filed with SEC EDGAR for the quarter ended June 27, 2026, with segment detail and analyst reaction sourced from MacRumors’ coverage of the earnings call. Third Pole Markets holds no position in Apple as of publication — see our About page for the full disclosure policy.
