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U.S. stocks traded higher midway through trading, with the Dow Jones index gaining around 200 points on Friday.

The Dow traded up 0.38% to 52,406.69 while the NASDAQ rose 0.25% to 25,184.43. The S&P 500 also rose, gaining, 0.22% to 7,453.96.

Leading and Lagging Sectors

Consumer discretionary shares jumped by 5.6% on Friday.

In trading on Friday, materials stocks fell by 2.7%.

Top Headline

Shares of Apple Inc (NASDAQ:AAPL) fell more than 9% on Friday after the company posted results for the third quarter.

Apple posted fiscal third-quarter revenue of $109.42 billion, beating analyst estimates of $108.65 billion. The Cupertino-based company reported earnings of $2.02 per share for the quarter, beating estimates of $1.89 per share, according to Benzinga Pro.

Apple said it sees fourth-quarter sales of $111.688 billion to $113.737 billion, versus estimates of $114.840 billion.

Equities Trading UP
           

Equities Trading DOWN

Commodities

In commodity news, oil traded up 1% to $84.39 while gold traded down 1.5% at $4,098.30.

Silver traded down 2.2% to $57.67 on Friday, while copper fell 0.4% to $6.4495.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 slipped 0.1%, while Spain’s IBEX 35 Index fell 0.1% London’s FTSE 100 fell 0.2%, Germany’s DAX declined 0.1%, while France’s CAC 40 gained 0.3%.

Asia Pacific Markets

Asian markets closed higher on Friday, with Japan’s Nikkei 225 surging 4.03%, Hong Kong’s Hang Seng index rising 0.01%, China’s Shanghai Composite gaining 0.72% and India’s BSE Sensex gaining 0.21%.

Economics

U.S. employment costs increased by 0.9% in the second quarter, up from market estimates of a 0.8% rise. The University of Michigan’s consumer sentiment index rose to 55.2 in July versus a preliminary reading of 54.0. Photo via Shutterstock

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Key Takeaways Apple's fiscal Q3 sales rose 16.4% to $109.42 billion as iPhone, Mac and Services set June records.iPhone sales climbed 21.7% to $54.25 billion, driven by strong demand for the iPhone 17 family.Apple expects Q4 revenue growth of 9-11%, with supply constraints and higher memory costs pressuring results. Apple (AAPL - Free Report) delivered third-quarter fiscal 2026 earnings of $2.02 per share, up 28.7% year over year. After adjusting for non-recurring items, earnings were $1.91 per share, which beat the Zacks Consensus Estimate by 1.6%.

Net sales increased 16.4% year over year to $109.42 billion, surpassing the consensus mark by 0.6%. The results reflected record June-quarter revenues from iPhone, Mac and Services. Apple’s installed base exceeded 2.5 billion active devices, reaching an all-time high across all major product categories and geographic segments.

AAPL's iPhone and Mac Set June RecordsProduct sales increased 18.1% year over year to $78.68 billion and accounted for 71.9% of total revenues. iPhone remained the primary growth engine, with sales rising 21.7% year over year to $54.25 billion. The category set June-quarter records across every geographic segment and benefited from strong demand for the iPhone 17 family.

Mac sales surged 28.7% year over year to $10.35 billion, driven by MacBook Neo and MacBook Pro. Apple achieved records for both upgraders and customers new to Mac, despite supply constraints tied mainly to advanced-node chips used in its systems.

Apple Services Extend Recurring Revenue GrowthServices revenues advanced 12.1% year over year to a June-quarter record of $30.74 billion. The segment represented 28.1% of total sales and produced records across every services category.

Cloud and payment services reached all-time highs, while advertising, the App Store, AppleCare, Music and video posted June-quarter records. Paid subscriptions surpassed 1.5 billion, supported by record transacting and paid accounts. However, Apple noted softness in mobile gaming and changes to the App Store business model in certain markets.

AAPL's Other Product Categories Deliver Mixed ResultsiPad sales declined 5.9% year over year to $6.19 billion, reflecting a difficult comparison with the prior-year launch of the A16-powered iPad. Still, the iPad installed base reached a record, and more than half of quarterly buyers were new to the product.

Wearables, Home and Accessories sales increased 6.5% year over year to $7.88 billion. Growth was broad-based across developed and emerging markets. Apple Watch set a June-quarter record for upgraders, while more than half of customers purchasing the device were first-time buyers.

Apple Posts Broad-Based Geographic GrowthAmericas sales rose 11.1% year over year to $45.78 billion and remained Apple’s largest geographic market. Europe revenues jumped 22.4% year over year to $29.40 billion.

Greater China sales also climbed 22.4% to $18.82 billion, supported by strength across Apple’s product portfolio. Japan sales increased 13.4% to $6.55 billion, while Rest of Asia Pacific sales grew 15.6% to $8.87 billion. The company achieved June-quarter revenue records across every geographic segment.

AAPL's Margins Gain From Tariff RefundsGross margin expanded 360 basis points (bps) on a year-over-year basis to 50.1%. The result included a favorable impact of roughly 2 percentage points from tariff refunds. Products gross margin was 40.1%, up 140 bps sequentially. Services gross margin reached 75.6%, down 110 bps sequentially, primarily attributed to unfavorable mix.

Operating expenses increased 22.9% year over year to $19.08 billion as Apple stepped up research and development (R&D) investments. R&D expenses surged 32.3% year over year to $11.73 billion, while selling, general and administrative expenses rose 10.5% to $7.35 billion.

Operating income increased 26.6% year over year to $35.70 billion.

Apple Cash Flow Supports Shareholder ReturnsApple ended the period with $147 billion in cash and marketable securities and $84 billion in total debt.

Operating cash flow totaled $34.4 billion during the quarter, setting a June-quarter record.

The company returned $33 billion to shareholders, including $25.8 billion through share repurchases and $4 billion in dividends and equivalents. The board declared a quarterly dividend of 27 cents per share.

AAPL Outlook Flags Supply and Memory PressureFor the fourth quarter of fiscal 2026, Apple expects revenues to increase 9% to 11% year over year. Management anticipates foreign exchange to reduce the growth rate by about 2.5 percentage points sequentially, while supply constraints are expected to intensify across iPhone, Mac and iPad.

Apple expects iPhone to grow at mid-teens year over year in the September quarter. Services year-over-year reported growth rate is expected to be largely similar to June growth rate after removing the 2.5 percentage point negative impact from foreign exchange.

Gross margin is projected between 47% and 48%, including a roughly 1-percentage-point benefit from tariff refunds. Operating expenses are expected between $19.1 billion and $19.4 billion.

Apple also expects higher memory costs to pressure profitability, partially offset by carry-in inventory, lower costs for certain non-memory components and favorable product mix.

Zacks Rank & Stocks to ConsiderCurrently, Apple carries a Zacks Rank #3 (Hold).

Shopify (SHOP - Free Report) , Sandisk (SNDK - Free Report) and HubSpot (HUBS - Free Report) are some better-ranked stocks in the broader Zacks Computer and Technology sector. While Sandisk sports a Zacks Rank #1 (Strong Buy) at present, Shopify and HubSpot carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify, Sandisk and HubSpot are expected to report their quarterly results on Aug. 5. Shares of Sandisk have jumped 457.3%, while Shopify and HubSpot have dropped 24% and 41.9%, year to date, respectively.

U.S. stock futures were higher this morning, with the Nasdaq 100 futures gaining around 300 points on Friday.

Shares of Apple Inc (NASDAQ:AAPL) fell sharply in pre-market trading after the company posted results for the third quarter.

Apple posted fiscal third-quarter revenue of $109.42 billion, beating analyst estimates of $108.65 billion. The Cupertino-based company reported earnings of $2.02 per share for the quarter, beating estimates of $1.89 per share, according to Benzinga Pro.

Apple said it sees fourth-quarter sales of $111.688 billion to $113.737 billion, versus estimates of $114.840 billion.

Apple shares dipped 7.4% to $309.00 in pre-market trading.

Here are some other stocks moving lower in pre-market trading.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

For much of the past decade, investors could count on one thing: Apple (NASDAQ:AAPL | AAPL Price Prediction) rarely disappointed. Under Tim Cook, the company became the first to reach $1 trillion, before going on to surpass $2 trillion, $3 trillion, $4 trillion, and briefly $5 trillion in market value while building one of the most profitable businesses in history. 

Yet even the best operators eventually encounter forces beyond their control. Apple’s fiscal third-quarter results yesterday showed a company still setting records, but management also warned that an unprecedented supply crunch will cap sales in the current quarter. The market focused on the near-term pain and knocked roughly 7.7% off Apple’s stock, wiping out about $350 billion in value. Cook will be stepping down as CEO in September and be replaced by John Ternus.

Record Results Overshadowed by a Historic Bottleneck Apple’s Q3 revenue climbed to a June-quarter record of $109.4 billion, while earnings of $2.02 per share also reached a new high. Services continued to expand, and Apple’s installed base of active devices of over 2.5 billion also hit another record, reinforcing the loyalty that has made the ecosystem so valuable over the years.

The problem wasn’t the quarter Apple reported. It was the quarter ahead. Cook previously described the supply disruption as a “hundred-year flood,” and warned yesterday that shortages of memory and other components would constrain shipments of iPhones, Macs, and certain iPads during fiscal fourth quarter. Guidance for those product categories came in below Wall Street expectations despite demand remaining healthy.

Importantly, Apple isn’t warning that customers are disappearing. It is warning that it can’t build enough products to satisfy them.

Even a $109 billion record quarter couldn't stop a $350 billion wipeout. Inside the 'hundred-year flood' threatening the world's most valuable tech giant. © 24/7 Wall St. The Real Battle Is Happening in Memory The shortage has evolved into a public dispute between Apple and memory supplier Micron Technology (NASDAQ:MU). Apple has argued that rising memory prices amount to price gouging and is seeking government permission to source certain blacklisted Chinese components to ease shortages.

Micron argues Apple and other large customers spent years using their purchasing power to negotiate lower prices during industry downturns, discouraging investment in new manufacturing capacity. When artificial intelligence created an unexpected surge in demand for high-bandwidth memory, the industry lacked sufficient production to satisfy everyone.

Years of cyclical pricing pressure kept capacity disciplined, while AI accelerated demand far faster than memory manufacturers anticipated. The result is today’s shortage, where even Apple cannot buy every component it needs.

Investors Should Focus on What Happens After the Flood Wall Street largely views Apple’s problem as delayed demand rather than destroyed demand.

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Apple customers have repeatedly shown they’re willing to wait for new devices. The company has also demonstrated unusual pricing power. Apple is raising prices later this year to offset higher component costs, yet analysts broadly expect only modest demand impacts because of the strength of the ecosystem and customer loyalty.

Granted, near-term estimates will probably come down. Revenue deferred into future quarters still affects quarterly results and investor sentiment. That said, long-term investors should separate operational execution from industry-wide supply constraints.

Memory production is expanding, and pricing typically moderates after capacity catches up with demand. When that happens, Apple should once again be able to satisfy demand that already exists rather than spending quarters constrained by unavailable components.

Key Takeaway In short, Apple’s latest earnings did not expose a weakening franchise. They exposed the limits of even Tim Cook’s supply-chain expertise during an industrywide shortage unlike anything the company has previously experienced.

The market, though, responded by focusing on the next three months. Smart investors should spend more time thinking about the next three years.

Apple still generates record quarterly results, maintains one of the world’s strongest consumer ecosystems, and serves a customer base that has repeatedly proven willing to wait — and pay — for its products. Regardless of whether memory prices remain elevated for another quarter or two, supply constraints eventually ease. When they do, delayed sales have an opportunity to flow back into Apple’s results. 

For patient shareholders, this sharp pullback is not the end of Apple’s growth story. It is just another chapter in a business that has repeatedly recovered from temporary setbacks.

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Contact [email protected] for any questions or corrections.

As Apple Inc. (NASDAQ: AAPL) reported its strongest June quarter ever, revealing mixed performance, nearly a dozen Wall Street analysts set their 12-month forecasts.

On July 31, Michael NG, an analyst at Goldman Sachs Group Inc. (NYSE: GS), reiterated a Buy rating for Apple stock. Michael, however, cut his 12-month price target for AAPL stock to $360 from $370. 

Apple stock closed Thursday trading at $333.43; however, the shares fell by 7.74% to $307.64 during the pre-market. As such, this expert signals a potential upside of 17.02%.

The bank said the third quarter results for the company’s fiscal 2026, which ended on June 27, were largely in line. However, Michael said that weaker-than-expected Q4 guidance on revenue growth and margins weighed on the outlook. 

Nonetheless, Goldman expects sentiment to improve as price increases. Furthermore, the analyst expects new AI features and product launches to support revenue and margins.

Average Apple stock forecast from Wall Street analysts  Earlier on Friday, Brandon Nispel, an analyst from KeyBanc, reiterated a ‘Sell’ rating for AAPL shares. He set a 12-month price target of $250, which represents a possible 25.02% sell-off. 

Meanwhile, among the analysts who reiterated a Hold rating for Apple stock earlier today are Barton Crockett at Rosenblatt Securities, David Vogt from UBS, and Laura Martin from Needham.

Consequently, 28 analysts surveyed by TipRanks have set an average 12-month price target of $333.37, which equates to an increase of around 8.36%. Essentially, Wall Street analysts are moderately bullish on this company over the coming 12 months. 

AAPL price outlook After hitting an all-time high of slightly above $344 earlier this week, AAPL price has tumbled over 10%, fueled by the mixed earnings report. 

AAPL stock price. Source: TradingView

Moreover, Apple beat Wall Street expectations on revenue, Earnings per share (EPS), operating income, and net income. This was driven by strong demand in iPhone, Mac, and Products growth, amid increased operating cash flow, up 43.1% year-over-year (YoY).

However, the company’s services missed estimates at $30.74 billion against $31.36 billion expected, as iPad revenue fell 5.9% YoY. Apple noted that Greater China’s revenue was $18.82 billion versus a $ 19.58 billion estimate.

As a result, Apple stock outlook over the next 12 months could be affected by the products the company launches in its upcoming September event.

HomeIndustriesComputers/ElectronicsTech StocksTech StocksInvestors are reacting negatively to weak guidance brought on by supply-chain pressuresJuly 31, 2026, 9:51 a.m. ET

Investors had come to view Apple’s stock as a port in the storm of artificial-intelligence uncertainty, but the company’s latest earnings report showed it’s not immune to AI pressures.

Apple’s stock AAPL was down 9.3% in morning trading Friday, on track to post its most negative one-day reaction to earnings in more than a decade. While the company saw strong traction with its Mac and iPhone businesses in the most recent quarter, it is feeling the sting of high memory prices — and the problems could linger.

Lo Toney z Plexo Capital si myslí, že investoři mění svá hodnocení čtvrtletních výsledků technologických společností. Dva technologičtí analytici Dan Ives a Gil Luria přijali pozvání na rozhovor ke Stevu Eismanovi a hovořili o řadě téma včetně návratnosti investic do AI. Steven Rattner z Willett Advisors si myslí, že Čína toho z USA nemusí mnoho kupovat, Spojené státy jsou na ní ale závislé více. A proto Čína v současných obchodních tenzích vyhrává.

Investoři mění způsob hodnocení výsledků firem: Alphabet ukazuje, že umělá inteligence pomáhá jeho výsledkům, ale zároveň zvýšil své investiční výdaje. Na CNBC to připomněl Lo Toney z Plexo Capital, podle kterého zveřejněné výsledky této společnosti a reakce akcií na ně ukazují, že se změnilo to, jak investoři hodnotí čtvrtletní čísla. „Růst tržeb je nutný, ale ne dostačující.“ Stále více se hledí i na to, kolik kapitálu je nutno pro růst tržeb investovat a jak rychle se to na tržbách a ziscích projeví. A pozornost je věnována stále více i kapitálové struktuře společností, tedy tomu, jaký je poměr dluhů k vlastnímu jmění. To vše neplatí jen o institucionálních investorech, ale i o těch retailových.

Investiční boom umělé inteligence a „vy si bojujte, my vyhrajeme.“ Dva technologičtí analytici Dan Ives a Gil Luria přijali pozvání na rozhovor ke Stevu Eismanovi a debata se samozřejmě týkala zejména nových technologií a umělé inteligence. Luria poukázal na to, že nyní se hovoří především o tom, jaké návratnosti bude u investic do AI skutečně dosahováno. Týká se to i konkrétních firem a jako příklad můžeme uvést Microsoft. U něj totiž lze argumentovat, že jeho investice do AI se nezaplatí, a navíc na něj dolehne to, že AI bude nahrazovat tradiční software. Podle analytika se ale u této firmy dá stejně tak tvrdit, že investice se zaplatí a softwarové produkty Microsoftu budou i dál široce používány. Ives zopakoval, že podle něj probíhá další průmyslová revoluce, nicméně na trhu se budou opakovat období, kdy budou vládnout pochyby.

Eisman připomněl, že vysoké investice do AI nyní znamenají, že řada společností se stává náročných na kapitál. Musí vydávat nové akcie a dluhopisy, přestože tak po dlouhou řadu let nečinily a vše financovaly z toho, co vydělaly. K tomu nemusí být v oblasti modelů umělé inteligence žádná konkurenční výhoda a vývoj může směřovat ke komoditizaci a nízkým cenám za využívání AI. Ives k tomu řekl, že i podle něj bude ke komoditizaci samotných modelů docházet, hodnota bude v datech, která mají společnosti k dispozici. Společnosti budou „budovat své AI ekosystémy“, které konkurenční výhody mít budou.

Ives zopakoval svou tezi, podle které bude „AI párty“ trvat ještě řadu let. Firmy, které do této technologie neinvestují, pak podstupují riziko, že „na tuto párty přijdou pozdě“. Tím se diskuse přesunula k Applu, který se na rozdíl od řady jiných technologických společností drží v pozadí. Ives k tomu uvedl, že řada lidí po celém světě bude AI používat přes mobilní telefony. Luria dodal, že Apple stojí stranou a nechává ostatní, ať vymyslí a vyřeší všechny problémy.

„Pak bude používat ten nejlepší model, ten se ale v jeho zařízeních bude jmenovat Nová Siri. Vy bojujte, my hrajeme.“ Luria pokračoval s tím, že mezi softwarovými společnostmi jsou ve vztahu k AI „ty dobré, mezi ně patří třeba Microsoft a Palanit. A pak ty horší, třeba Salesforce.“ Ives dodal, že Apple má výbornou pozici pro monetizaci umělé inteligence na straně spotřebitelů.

Trumpovým cílem může být chaos, Čína obchodní potyčky vyhrává: Clům a obchodním tenzím nebyla nějaký čas věnována taková pozornost, ovšem ne kvůli tomu, že by jejich důležitost upadala. Nyní podle Bloombergu americká vláda v této oblasti přichází s řadou kroků a situaci komentoval Steven Rattner z Willett Advisors. Ten připomněl, že původní cla byla soudně zrušena, nyní se vláda snaží o jejich obnovu na základě konkrétních obchodních dohod. Tedy způsobem, který už není tak jednoduchý a přímočarý jako předtím.

Trump se „pokouší využít čehokoliv v obchodních dohodách, aby uvalil cla na kohokoliv, kdo se mu právě znelíbil nebo se postavil proti němu. Bude toho teď hodně, děje se to u léků, jeden den cla zavedou, pak je pozdrží,“ řekl Rattner s tím, že trhy by v takové situaci obvykle reagovaly citlivě, ale nyní se zaměřují na jiné věci. A co ukazují reálná data k tvrzení, že cla mají do USA přenášet výrobu ze zahraničí? Expert k tomu řekl, že tento přesun vrcholil na konci Bidenova funkčního období, od té doby navzdory některým tvrzením počet nově budovaných továren ve Spojených státech klesá.

Rattner dodal, že datová centra nejsou považována za továrny a do uvedených dat se tedy mohutné investice hyperscalerů nepromítají. Určitý posun k výrobě na domácí půdě sice probíhá, ale promítají se do něj i zkušenosti firem získané po roce 2020. Ty ukazují, že někdy je lepší mít výrobu doma než dovážet třeba z asijských zemí. „Trump tomuto posunu pravděpodobně trochu pomohl, ale fundamentálně je výroba na stejné trajektorii jako během posledních padesáti let. Tedy na klesajícím trendu.“

K rozpočtovým deficitům Rattner řekl, že cla na ně nemají v podstatě žádný dopad, nedochází k tomu, že by příjmy z nich deficity snižovaly. Podle experta si ani Trump nemyslel, že by k něčemu takovému mohlo dojít. „Tohle není rok 1800, kdy byla cla skutečně použita na vyrovnání rozpočtu a splacení vládních dluhů,“ dodal expert. Na Bloombergu se pak hovořilo o tom, že podle některých názorů Trump svým neustálým ohlašováním nových cel a následným pozdržováním jejich platnosti a změnami jejich výše chce vytvořit nejistotu, která sama o sobě bude motivovat americké společnosti, aby prostě vyráběly doma a nemusely se tímto tématem zabývat. Rattner  k tomu zmínil, že neví, zda tomu tak skutečně je, ale že Trump takhle přemýšlet může.

Vývoj také potvrzuje, že „je toho jen velmi málo, co Čína potřebuje kupovat od Spojených států a nemůže to sehnat jinde. A je toho hodně, včetně vzácných minerálů, co Spojené státy musí kupovat od Číny.“ Ta proto „vyhrává“, protože je toho jen velmi málo, co musí dovážet, avšak Spojené státy „si mohou vystačit bez hraček“, ale ne bez řady dalších položek, které z Číny dováží.

Posted by Defense World Staff on Jul 31st, 2026

Collaborative Wealth Managment Inc. cut its stake in shares of Apple Inc. (NASDAQ:AAPL – Free Report) by 25.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 21,075 shares of the iPhone maker’s  stock after selling 7,148 shares during the period. Apple accounts for 2.5% of Collaborative Wealth Managment Inc.’s holdings, making the stock its 11th largest position. Collaborative Wealth Managment Inc.’s holdings in Apple were worth $5,349,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently made changes to their positions in the company. Norges Bank acquired a new position in Apple in the 4th quarter valued at $52,266,468,000. Nuveen LLC acquired a new stake in shares of Apple during the first quarter worth $17,472,482,000. Cardano Risk Management B.V. boosted its position in shares of Apple by 890.7% in the fourth quarter. Cardano Risk Management B.V. now owns 41,984,810 shares of the iPhone maker’s stock valued at $11,413,990,000 after acquiring an additional 37,746,784 shares during the period. Laurel Wealth Advisors LLC boosted its position in shares of Apple by 20,464.8% in the second quarter. Laurel Wealth Advisors LLC now owns 27,069,029 shares of the iPhone maker’s stock valued at $5,553,753,000 after acquiring an additional 26,937,401 shares during the period. Finally, Vanguard Group Inc. grew its stake in shares of Apple by 1.9% in the fourth quarter. Vanguard Group Inc. now owns 1,426,283,914 shares of the iPhone maker’s stock valued at $387,749,545,000 after acquiring an additional 26,856,752 shares in the last quarter. Institutional investors own 67.73% of the company’s stock.

Trending Headlines about Apple Here are the key  news stories impacting Apple this week:

Recent news headlines

Positive Sentiment: Apple reported record June-quarter revenue of approximately $109.4 billion, up 16% year over year, while diluted EPS of $2.02 rose 29% and exceeded Wall Street expectations. Strong iPhone and Mac sales drove the results. Apple reports third quarter results Positive Sentiment: The company said its active installed base reached an all-time high, and iPhone, Mac and Services each posted June-quarter revenue records. Apple also declared a quarterly dividend of $0.27 per share. Apple Q3 revenue rises Neutral Sentiment: Apple indicated that a revamped Siri could eventually become a paid service for heavy users, offering a potential long-term monetization opportunity as the company expands its consumer-AI strategy. Tim Cook says Apple may charge for AI Siri Neutral Sentiment: Thursday marked Tim Cook’s final earnings call as CEO before he steps down in September, adding leadership-transition uncertainty despite incoming CEO John Ternus’s expected continuity. Negative Sentiment: Apple’s fiscal fourth-quarter revenue outlook of $111.7 billion to $113.7 billion was below the roughly $114.3 billion consensus estimate. The cautious forecast is a key reason the stock has decreased despite the quarterly beat. Negative Sentiment: The generative-AI hardware boom is driving severe memory and component shortages. Apple is stockpiling inventory, but CEO Tim Cook warned that the impact of higher memory prices will worsen, pressuring product margins and potentially requiring further price increases. The quarter’s 50.1% gross margin benefited by about two percentage points from tariff refunds, a benefit that may not recur. Apple stockpiles inventory Negative Sentiment: Services revenue missed expectations, with Apple citing a slowdown in gaming and the effects of App Store changes. Weaker-than-expected China performance also raised concerns about regional demand and competition. Negative Sentiment: With Apple valued near $5 trillion and trading at roughly 40 times earnings, investors had set very high expectations. That premium leaves less room for disappointment in growth, margins or guidance. Apple forecasts slower growth Apple Price Performance Discover more

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Apple stock opened at $333.43 on Friday. The stock has a fifty day moving average of $309.51 and a 200-day moving average of $281.25. The stock has a market capitalization of $4.90 trillion, a P/E ratio of 40.32, a price-to-earnings-growth ratio of 2.92 and a beta of 1.10. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.02 and a current ratio of 1.07. Apple Inc. has a 52 week low of $201.50 and a 52 week high of $344.57.

Apple (NASDAQ:AAPL – Get Free Report) last released its earnings results on Thursday, July 30th. The iPhone maker reported $2.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.89 by $0.13. The firm had revenue of $109.42 billion for the quarter, compared to analysts’ expectations of $109.04 billion. Apple had a return on equity of 146.69% and a net margin of 27.15%.The business’s revenue for the quarter was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.57 earnings per share. On average, sell-side analysts expect that Apple Inc. will post 8.76 earnings per share for the current fiscal year.

Apple Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Monday, August 10th will be issued a dividend of $0.27 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $1.08 annualized dividend and a dividend yield of 0.3%. Apple’s dividend payout ratio (DPR) is 13.06%.

Insider Transactions at Apple In other Apple news, insider Ben Borders sold 1,274 shares of the  stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $290.00, for a total value of $369,460.00. Following the completion of the transaction, the insider directly owned 38,713 shares in the company, valued at approximately $11,226,770. This trade represents a 3.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.06% of the stock is currently owned by insiders.

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Analyst Upgrades and Downgrades Several analysts have weighed in on AAPL shares. HSBC upgraded shares of Apple from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $260.00 to $366.00 in a research note on Thursday, July 16th. Jefferies Financial Group reiterated a “hold” rating on shares of Apple in a research report on Tuesday, June 9th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Apple in a research note on Monday, June 8th. KGI Securities lowered Apple from an “outperform” rating to a “hold” rating and set a $315.00 price objective on the stock. in a research note on Monday, June 22nd. Finally, Raymond James Financial set a $380.00 price objective on Apple in a report on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Apple has a consensus rating of “Moderate Buy” and a consensus target price of $327.40.

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Apple Company Profile (Free Report)

Apple Inc (NASDAQ: AAPL) is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple’s principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.

Read More Five stocks we like better than Apple Microsoft Just Flipped the AI Spending Narrative Overnight Qualcomm’s Turnaround Is Working, So Why Is Wall Street Selling? Meta’s Earnings Show Why Wall Street Is Losing Patience With AI Spending Can Starbucks Keep This Turnaround Going? The Latest Results Say Yes Want to see what other hedge funds are holding AAPL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Apple Inc. (NASDAQ:AAPL – Free Report).

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There's been speculation for a while that Apple (AAPL -1.41%) would eventually launch a major leasing program for its devices. Still, until recently, the company mostly offered leasing plans for its iPhones.

But after Apple rolled out its new Upgrade program just a few days ago, the company is now all-in on letting customers lease their devices -- from the Apple Watch to its Mac computers -- through Klarna.

It's a big move for Apple, and it could make its premium products more affordable for some customers while encouraging others to upgrade to more expensive models.

Image source: The Motley Fool.

Apple offers customers an Upgrade Apple used to have its iPhone Upgrade plan, which let some customers pay for their phones monthly and upgrade to a new one every year, but it's doing away with that plan -- while keeping the Upgrade name -- and rolling out leases for nearly all of its devices.

Apple said in a press release that new iPhones will start at $17.99 under the Upgrade plan, an Apple Watch will start at just $11.99, new iPads will start at $17.99 per month, and Mac leases will start at $24.99 per month. The iPhone and Watch will have leasing options of 12 to 24 months, while the Mac and iPad have 24- to 36-month leases.

Once a customer completes their lease term, they can either upgrade their device to the latest generation, purchase it with a one-time payment, or turn in the device and end the lease. Buy now, pay later payments company Klarna will handle enrollment, approval, and leasing billing, and the payment process will be managed in the Klarna app.

Removing the sticker shock and potentially boosting upgrades The timing of Apple's new Upgrade leasing program is particularly notable because just a couple of weeks ago, the company significantly raised prices across many of its devices. For example, the cost of some of its Macs and iPads jumped by $200 or more.

Apple said the price increases are the result of surging memory processor costs, which have risen as demand for memory in artificial intelligence data centers increases. Many other tech companies are in the same boat as Apple, with their margins squeezed unless they raise device prices.

Apple hasn't announced higher prices for its iPhones, but is expected to do so once the latest generation debuts in the fall.

This is likely why Apple wanted to roll out its new Upgrade program as soon as possible. By giving customers the option to lease their devices instead of paying for them up front, Apple may be able to round off the harsh edges of its recent price increases -- while still maintaining the enviable 39% gross margins it earns on its hardware.

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Investors will want to pay especially close attention to upgrade cycles Apple's goal is pretty obvious, given the name for the new leasing program. Just as with its previous iPhone Upgrade plan, the company hopes that customers who lease their devices will develop a regular habit of upgrading to the newest version of their iPhone, Macs, Watch, etc., when the lease term ends.

And with low monthly payments for some devices, it'll likely be easier for users to justify getting a new device every year or two if the monthly price stays the same, or close to it.

What's more, the new Upgrade program could convince customers to buy devices they wouldn't normally purchase. For example, Apple is rumored to be releasing its first foldable iPhone in September, with a 7.8-inch screen and a premium $2,000 price tag.

That's a hefty sum to pay for a phone, but if some customers can lease it for a reasonable monthly price, then it could spur sales of the high-end device.

Give this some time to bake Investors won't know how successful the new Upgrade program is for at least a few more quarters. Its new iPhones will likely debut sometime in September, and Apple's best-performing quarter is typically its fiscal first quarter, which covers the end of September through December.

This means that by early next year, investors will likely have more insight into whether customers are using Apple's leasing program.

But, at least for now, this looks like a smart move by the company to help ease the pain of its recent price increases -- and potentially convince some customers that a $2,000 phone is worth the cost.

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

HomeEarnings AnalysisTech 

SummaryApple exhibits strong financials, but recent revenue growth is driven by a one-time hardware upgrade cycle, not sustainable innovation.AAPL's premium valuation is unjustified given its mature business model, static product matrix, and lack of major CAPEX in AI infrastructure.Risks of technological lag and margin compression loom as competitors invest heavily in AI, while AAPL relies on monetizing its existing user base.I rate AAPL a SELL due to overvaluation, lack of growth catalysts, and a fundamental mismatch between its business trajectory and current multiples. arosoft/iStock via Getty Images

The financial indicators of Apple (AAPL) look highly confident at first glance, especially following the just-released Q3 results. The company reported a strong June quarter with revenue hitting $109.4 billion, which represents a 16% YoY increase, while

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Revenue: $109.4 billion, up 16% year-over-year, a June quarter record.iPhone Revenue: $54.3 billion, up 22% year-over-year, a June quarter record.Mac Revenue: $

Apple has warned it is seeking alternative memory chip suppliers as "very significant" constraints threaten future sales of its key devices.

Shares in the world's most valuable listed company fell by more than 5% in US after-hours trading last night when the maker of the iPhone, MacBook and iPad's forecasts for revenue growth came in weaker than expected.

Chief executive Tim Cook admitted that well publicised bottlenecks in advanced chips meant it was struggling to get the parts needed to deliver products.

"We're seeing some very significant (supply) constraints currently with limited flexibility in the supply chain to remedy it," he told a call with analysts.

Money latest: An airline's plea to PM that could make flights cheaper

Apple expected revenue growth of 9% to 11% in the current quarter, compared with a year earlier.

That was less than the 12% ‌rise predicted by Wall Street, according to London Stock Exchange Group data.

iPhone sales revenue was expected to grow at a mid-teens rate, compared with the market's target of 17.6%.

Apple and the technology industry generally have been scrambling to meet demand for new products, especially those with high-end processors and memory.

Image: Tim Cook is due to step down on 1 September. File pic: Reuters In an interview with the Reuters news agency, Cook ​said the main supply constraint was an industry shortage of advanced chipmaking technology used to produce the Apple silicon chips at the heart of its devices, particularly for the Mac lineup.

"If you look at the root ​causes... it's that we're having an incredibly strong product cycle beyond our expectations, and the (advanced chipmaking) supply chain just fundamentally has less flexibility in it to ⁠meet the high levels of demand," he said.

Britain's AI future depends on chips it doesn't control

Apple's latest results largely met expectations, including a 21.7% hike in iPhone sales to $54.3bn (£40.3bn) between April and June.

That amounted to a new record for the company's third quarter.

Analysts largely expect Apple to raise its iPhone prices in the months ahead, citing pressures from the chip shortage.

Macs and iPads have already seen increases.

The price rises are worrying some market commentators, while investors are also preparing for a change of leadership.

It was Cook's final earnings appearance before his retirement after 15 years at the helm of the company.

John Ternus, Apple's head of hardware engineering, will assume the CEO role on 1 September.

Apple, which recently topped Nvidia as the most valuable listed company, has been largely spared the volatility in share price seen by chipmakers and big spenders on artificial intelligence.

Apple continues to generate cash without the huge investment spending that its Wall St peers are dealing with "and that showed across most parts of the operation," said Thomas Monteiro, an analyst at Investing.com.

"As the market grows more worried about free cash flow trajectories elsewhere in Big Tech, Apple keeps standing out as the safe haven in the storm," he concluded.

Apple Inc. (AAPL) Q3 2026 Earnings Call July 30, 2026 5:00 PM EDT

Company Participants

Suhasini Chandramouli - Director of Investor Relations
Timothy Cook - CEO & Director
Kevan Parekh - Senior VP & CFO
John Ternus - Senior Vice President of Hardware Engineering

Conference Call Participants

Amit Daryanani - Evercore ISI Institutional Equities, Research Division
Michael Ng - Goldman Sachs Group, Inc., Research Division
Benjamin Reitzes - Melius Research LLC
Erik Woodring - Morgan Stanley, Research Division
Aaron Rakers - Wells Fargo Securities, LLC, Research Division
Wamsi Mohan - BofA Securities, Research Division
Samik Chatterjee - JPMorgan Chase & Co, Research Division

Presentation

Suhasini Chandramouli
Director of Investor Relations

Good afternoon, and welcome to the Apple Q3 Fiscal Year 2026 Earnings Conference Call. My name is Suhasini Chandramouli, Director of Investor Relations. Today's call is being recorded.

Speaking first today is Apple's CEO, Tim Cook; followed by CFO, Kevan Parekh. Also joining us on today's call is incoming CEO, John Ternus. After the prepared remarks, we'll open the call to questions from analysts.

Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, taxes and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast including risks related to the potential impact to the company's business and results of operations from macroeconomic conditions, tariffs and other measures and legal and regulatory proceedings.

For more information, please refer to the risk factors discussed in Apple's most recently filed reports on Form 10-Q and Form 10-K and the Form 8-K filed with the SEC today, along with the associated press release. Additional information will also be in our report on Form 10-Q for the quarter ended June 27, 2026, to

Apple CEO Tim Cook had a lot to talk about on his last earnings call as CEO, as his company's stock price trended lower on concerns about supply constraints. Regardless of the selloff, he told investors that Apple has "enormous opportunities" in artificial intelligence.

Cook, who will be assuming the role of executive chairman on Sept. 1, said Apple's hybrid approach to AI, where some workloads can be run on iPhones and Macs is an advantage as his large tech peers rely on their massive clouds.

It's an important signal to Wall Street about the company's ability to run AI apps as Apple gears up for the launch of an updated Siri this fall.

"The ability to run some percentage of requests on device is also very strategic and sort of a competitive weapon," Cook said.

Apple has bucked its hyperscaler peers by spending significantly less on capital expenditures as it tries to be a player in AI. Most of the spending across the industry is going towards Nvidia-based data centers to run advanced AI models from companies like OpenAI and Anthropic.

Alphabet, Amazon, Meta and Microsoft have each committed to shelling out well over $100 billion in capex this year. In the June quarter, Apple's capex amounted to $2.46 billion, lower than a StreetAccount estimate of $3.44 billion. Cook noted that operating expenses are going up.

"We have been growing our opex and spending more in AI in general," Cook said.

Instead of spending heavily on data centers, Apple emphasizes that much of its AI suite — Apple Intelligence — can be run on the devices themselves, using the full power of Apple's chips and not radioing to the cloud.

Apple says it can do more in AI, potentially saving money for businesses that are spending heavily on AI software. He gave the example of Disney, where "creative teams are increasingly turning to Mac for on-device AI workflows that reduce overall cloud token costs and keep their IP secure," Cook said.

Apple's hybrid strategy will be tested when Siri AI is finally released to the public. The highly anticipated launch of Apple's personal assistant will depend on the iPhone's processor to decipher queries and use the appropriate on-device AI model.

However, there are tradeoffs in terms of what the local models can do. So for complicated AI tasks, Apple will use Google Cloud to serve those answers with infrastructure based on Nvidia's graphics processing units and Intel's central processors. Those tasks include things like image generation, Apple said in June, when it revealed the software.

Apple signaled at the time that it would cap users on its cloud models and that they might be able to increase their limits through iCloud. That would offer Apple a new way to monetize AI.

Cook said on Thursday that Apple didn't have a "complete plan" for charging users, but that it aims to use AI as a selling point for iCloud subscriptions.

"We do believe there will be people that want to use it a lot, and so we will have some kind of upgrade possibilities on on iCloud+," Cook said.

watch now

By PYMNTS  |  July 30, 2026

 | 

Highlights

Apple reported record June-quarter revenue of $109.4 billion, but analysts focused less on the numbers than on how AI will generate long-term growth.

Services reached a record $30.7 billion, payment services set an all-time high, and paid subscriptions topped 1.5 billion, reinforcing Services as Apple's fastest-growing recurring business.

Apple's weaker September outlook reflected foreign exchange and worsening supply constraints rather than slowing demand, management said.

Apple’s final earnings call under Tim Cook looked, on its surface, like another quarter of record financial results. Revenue rose 16% year over year to $109.4 billion, iPhone revenue climbed 22% to $54.3 billion, Mac revenue increased 29% to $10.4 billion, and Services reached another record at $30.7 billion despite foreign-exchange headwinds.

But during the call Thursday evening, as the stock dropped 6%, analysts pressed management on Siri AI, subscription economics, cloud-computing costs, Services growth and the durability of Apple’s hardware demand.

The trading action, it seems, indicates that investors want to know how the tech giant’s artificial intelligence strategy becomes a business, as supply constraints offer some near-term headwinds.

Cook opened the call by emphasizing both demand and Apple’s AI roadmap. He said Apple Intelligence, including the new Siri AI, is “profoundly capable, deeply personal, and integrated seamlessly across our platforms,” adding that early developer and public-beta feedback has been “phenomenal.” He argued Apple’s focus on private, context-aware AI will “change how users find information and get things done with our products.”

The company tied that strategy directly to hardware. Apple continues to present AI as another capability that strengthens the appeal of the iPhone, Mac and the broader ecosystem. Analysts asked whether AI could become a meaningful driver of holiday iPhone demand and whether Apple ultimately expects AI users to generate additional subscription revenue.

Cook stopped short of announcing a dedicated AI pricing model, but he acknowledged heavier users could migrate to higher service tiers.

“We do believe there will be people that want to use it a lot, and so we will have some kind of upgrade possibilities on iCloud Plus where people can buy up the stack on iCloud+,” Cook said. Apple has historically absorbed new software capabilities into its hardware ecosystem rather than charging separately for them. Cook’s comments suggest Siri AI could instead expand the company’s already-growing subscription business.

Chief Financial Officer Kevan Parekh noted on the call that Services revenue increased 12% to $30.7 billion, while cloud services and payment services reached all-time highs. Apple has now surpassed 1.5 billion paid subscriptions, while both paid and transacting accounts reached record levels.

Payments also continued to become a larger part of that ecosystem. During the quarter Apple introduced Apple Upgrade, a new hardware leasing program launched with Klarna, and said new Apple Cash capabilities, including bill splitting using Visual Intelligence, are planned for later this year. Management said that Apple Pay reached a record number of users in both developed and emerging markets despite foreign-exchange pressure, App Store changes and weaker mobile gaming activity.

Supply Constraints, Pricing and the Transition to Ternus Apple guided to 9% to 11% revenue growth for the September quarter, a noticeable slowdown from the June quarter’s 16% increase. Executives said the outlook reflects two issues rather than weaker customer demand: a roughly 2.5 percentage-point foreign exchange headwind and significantly tighter supply constraints affecting the iPhone, Mac and iPad.

“During the June quarter, we did experience supply constraints … driven by very high levels of demand,” Cook said. Looking ahead, he added, “We continue to expect high levels of demand. However … we expect the impact from the supply constraints to increase significantly.”

Component pricing, particularly memory, emerged as another recurring theme.

Cook acknowledged that Apple has absorbed successive increases in memory costs for three consecutive quarters and expects those costs to rise again in September. The company has offset some of that pressure through inventory, lower costs for other components and supply-chain management, but he suggested those offsets may become more difficult over time.

“We reluctantly raised prices,” Cook noted during the call. “We did it because we’re in what I would characterize as a hundred-year flood on the memory pricing with exponential increases in memory prices.”

Parekh later reinforced that point, saying memory inflation accounted for essentially all of the sequential gross-margin decline after adjusting for tariff refunds, while foreign exchange played only a limited role.

The call also provided Apple’s clearest comments yet on how AI could affect the company’s cost structure.

Analysts asked whether Siri AI would make Apple a more capital-intensive company as more AI requests move between on-device processing, Apple’s own infrastructure and third-party cloud providers.

Cook said Apple will continue using a hybrid approach while increasing AI spending across research, operating expenses and infrastructure.

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SummaryApple Inc. delivered fiscal Q3 revenues and EPS growth above rising street estimates.AAPL shares pulled back initially, as a large tariff benefit generated most of the bottom line beat.The company trades at a sizable premium to its large cap tech peers, but it doesn't have the strongest growth profile. Organic Media/iStock via Getty Images

After the bell on Thursday, we received fiscal third quarter results from Apple Inc. (AAPL). The technology giant had seen its shares rally to a new high recently at a more than $5

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CUPERTINO, Calif. – Apple delivered its strongest June quarter on record, reporting $109.4 billion in revenue and beating analysts' estimates of $108.65 billion in the company's final earnings report before CEO Tim Cook steps down.

A 22% jump in iPhone sales, combined with record spring quarter Mac revenue, helped drive the results. Tariff refunds also boosted Apple's bottom line, adding roughly 5% to profit during the period.

But the earnings numbers were only part of the story. In an interview following the report, Cook addressed Apple's approach to open-source artificial intelligence, the state of U.S.-China relations, rapidly rising memory chip costs and the legacy he leaves after 15 years at the helm.

APPLE CHIEF TIM COOK SAYS IT WAS THE 'RIGHT TIME' TO STEP DOWN AS CEO

Apple CEO Tim Cook delivers the keynote address during the Apple WWDC at Apple Park June 8, 2026, in Cupertino, Calif. (Justin Sullivan/Getty Images)

Cook said he has "nothing negative" to say about open-source AI models, adding "they are useful." His comments come as the technology industry debates whether the most powerful AI systems should remain proprietary or be made more broadly available to developers.

That debate has intensified after Chinese AI company Moonshot launched Kimi K3, a new model that has drawn attention for performance that rivals some of the most powerful systems from Anthropic and OpenAI. Apple, meanwhile, is preparing to launch its long-awaited AI-powered Siri this fall using Google's Gemini.

Cook's comments suggest Apple intends to remain pragmatic rather than ideological in choosing the models that power its products. The company has traditionally exercised tight control over its hardware and software ecosystem, but the fast-moving AI market may require it to draw on a wider range of outside technologies.

WHO IS JOHN TERNUS, SET TO SUCCEED TIM TOOK AS APPLE’S CEO?

China remains another critical part of Apple's AI strategy and its broader business.

Apple employees help customers at the Fifth Avenue Apple Store on new product launch day Sept. 19, 2025, in New York City. (Michael M. Santiago/Getty Images)

"In terms of the U.S.-China relationship, I was over in April for the state dinner, and I think the engagement between the countries is really good, and I've got a favorable view. And I'm very optimistic at this point about where the relationship is," Cook said.

Apple Intelligence has finally been approved in China after a delay of nearly two years compared with its U.S. launch. The approval could help Apple compete more effectively in one of its largest markets, where domestic smartphone makers have moved quickly to add generative AI features.

Apple's China sales rose 22% during the spring quarter to $18.81 billion. Even with that sharp increase, revenue still fell short of analysts' estimates of more than $19.5 billion in Apple's third-largest market.

Tariff refunds provided another lift to the quarter. Cook said Apple is directing that money back into domestic production.

APPLE TO LEASE IPHONES, OTHER PRODUCTS TO USERS THROUGH KLARNA PARTNERSHIP

"We're taking our tariff refunds and reinvesting those in the United States' advanced manufacturing," he said.

Apple has already committed to spending $600 billion over four years on the U.S. economy. The reinvestment gives the company a way to frame the refunds not simply as a temporary earnings benefit, but as additional support for its long-term manufacturing strategy.

At the same time, Apple is contending with a sharp increase in the cost of memory chips. The company recently raised prices on some Mac computers and iPads by as much as $300 as memory chip prices soared by as much as 600% over the past two years.

"As I'd mentioned on the call last time around, the memory costs were higher in March than December quarter, and then in June they were significantly higher than in the March quarter," Cook said.

Ticker Security Last Change Change % AAPL APPLE INC. 333.43 -4.76 -1.41% Those higher costs are arriving just as artificial intelligence is driving demand for more computing power and memory. Despite the price increases on some devices, Cook said Apple's new, lower-priced MacBook Neo, which starts at $699, was the company's bestselling computer in the United States during its first full quarter on the market.

Demand for Apple's higher-powered Mac Studio computers has also surged, creating supply shortages and helping push Mac revenue above $10 billion for a new spring-quarter record.

Cook will step down as chief executive on Sept. 1 after leading Apple for 15 years. He will remain chairman, while Apple's hardware engineering chief, John Ternus, takes over as CEO.

Cook became chief executive in 2011, succeeding Apple co-founder Steve Jobs. Since then, Apple's market value has increased by more than 1,000%. This week, the company became only the second corporation to surpass $5 trillion in market value, briefly overtaking Nvidia to reclaim the title of the world's most valuable company.

Apple's CEO Tim Cook attends the premiere of Season 4 of the Apple TV series "Ted Lasso" at the Academy Museum in Los Angeles July 27, 2026. (David Swanson/Reuters / Reuters)

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Reflecting on his tenure, Cook said, "I've had an incredible opportunity to work with people that I love to work with ... and it's just been the privilege of a lifetime."

Asked how he wants to be remembered, Cook demurred.

"How people will write about that will be theirs to decide," he said. "But for me, it's been a privilege."

Cook arrived in the top job facing doubts that a supply chain expert could preserve the product vision and culture associated with Jobs. Fifteen years later, he leaves behind a company operating at a scale few could have imagined in 2011 and one now entering a new era defined by artificial intelligence, geopolitical competition and the challenge of sustaining growth from the world's most valuable consumer technology franchise.

Apple says it has now topped 1.5 billion subscribers for its services business, up from 1 billion in January 2025. However, this segment of Apple’s business, which includes the Apple Store, AppleCare, music, video, and cloud services, was the only miss in what was otherwise a record-breaking quarter for the company’s hardware sales.

In Apple’s fiscal third quarter, the company reported $30.74 billion in services revenue, falling short of the $31.22 billion Wall Street analysts had expected. Combined with a miss in China, Apple’s stock tumbled over 4% in after-hours trading.

When asked to dive into what led to the decline in services revenue, Apple CFO Kevan Parekh pointed to several factors. Most notable, however, were the impacts on Apple’s cash cow, the App Store.

One factor contributing to the App Store’s performance in the quarter was a slowdown in mobile gaming. It also called out the App Store business model changes in certain countries, including the U.S.

The latter is a reference to Apple being under a court order that requires it to now allow app developers to process customer payments outside the App Store — and outside the reach of Apple’s commission. While Apple didn’t say to what extent this specific issue had impacted App Store revenue, it did remind investors that the matter will be heard by the Supreme Court for a final decision.

The company didn’t fully blame App Store issues for the services revenue miss. Other factors included foreign exchange, which Apple claimed was the main driver, as well as a comparison to prior quarters where Apple was raking in money from the success of its “F1” theatrical release.

Overall, the App Store still set a June quarter revenue record, Apple noted, but that total figure also includes revenue from Apple Ads, which have become a more significant part of Apple’s business, and recently expanded to Apple Maps.

Despite these issues — and other “headwinds” attributed to foreign exchange rates — Apple touted the potential for growing its services business in the future.

It noted the segment set an all-time revenue record in developed markets and a June quarter record in emerging markets. It also said the total services business saw double-digit revenue in the “vast majority” of markets Apple tracks.

“Our services continue to attract more customers, and we have now surpassed one and a half billion in paid subscriptions. Both transacting and paid accounts reached new all-time highs in the quarter, with double-digit growth for both in emerging markets,” said Parekh.

The company also shared that specific segments were doing particularly well, including Apple Ads, App Store, AppleCare, Apple Music, and Apple TV, which saw June quarter records, as well as cloud and payment services, which hit all-time highs. Apple TV additionally saw its viewership reach an all-time high in the quarter.

Apple also reminded investors of potential new services revenue streams, including the newer Creator Studio subscriptions and the upcoming bill-splitting features in Apple Cash, which could deepen customers’ engagement with Apple’s payments ecosystem.

This week’s launch of the Apple Upgrade program, in partnership with Klarna, could drive other increases in services revenue too, especially if it drives more people to buy an iPhone or other Apple device, adding services to their bill.

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For the quarter ended June 2026, Apple (AAPL - Free Report) reported revenue of $109.42 billion, up 16.4% over the same period last year. EPS came in at $1.91, compared to $1.57 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $108.75 billion, representing a surprise of +0.62%. The company delivered an EPS surprise of +1.6%, with the consensus EPS estimate being $1.88.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Apple performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales by Category- Wearables, Home and Accessories: $7.88 billion compared to the $7.81 billion average estimate based on seven analysts. The reported number represents a change of +6.5% year over year.Net Sales by Category- iPhone: $54.25 billion versus the seven-analyst average estimate of $53.97 billion. The reported number represents a year-over-year change of +21.7%.Net Sales- Services: $30.74 billion versus the seven-analyst average estimate of $31.38 billion. The reported number represents a year-over-year change of +12.1%.Net Sales by Category- Mac: $10.35 billion versus the seven-analyst average estimate of $8.67 billion. The reported number represents a year-over-year change of +28.7%.Net Sales- Products: $78.68 billion versus $77.36 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +18.1% change.Net Sales by Category- iPad: $6.19 billion versus the seven-analyst average estimate of $6.92 billion. The reported number represents a year-over-year change of -5.9%.Gross margin- Services: $23.25 billion compared to the $24.04 billion average estimate based on six analysts.Gross margin- Products: $31.53 billion compared to the $28.09 billion average estimate based on six analysts.View all Key Company Metrics for Apple here>>>

Shares of Apple have returned +14.9% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Amazon’s Satellite Push Raises the Stakes for SpaceX and AST SpaceMobileApple NASDAQ: AAPL reported fiscal third-quarter revenue of $109.4 billion, up 16% from a year earlier and a June-quarter record, as double-digit gains in iPhone, Mac and services offset supply constraints and foreign-exchange headwinds.

Net income totaled $29.8 billion, while diluted earnings per share rose 29% year over year to $2.02. CFO Kevan Parekh said EPS included an $0.11 favorable impact from tariff refunds. Operating cash flow reached a June-quarter record of $34.4 billion.

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Chips & Clips: Memory Tariffs Rewire Tech Supply ChainsThe company also said CEO Tim Cook was participating in his final earnings call, with incoming CEO John Ternus set to lead future calls. Cook said the transition was proceeding smoothly and expressed confidence in Ternus and Apple’s leadership team.

iPhone and Mac Lead Product Growth iPhone revenue rose 22% to a June-quarter record of $54.3 billion, driven by the iPhone 17 family. Cook said Apple recorded June-quarter iPhone revenue records across every geographic segment and set a record for upgraders. Parekh added that the iPhone active installed base reached an all-time high.

3 Value ETFs to Consider as Growth Stocks Lag BehindMac revenue climbed 29% to $10.4 billion, also a June-quarter record, despite what Cook described as significant supply constraints. Growth was led by MacBook Pro and the newly introduced MacBook Neo. Apple said it gained global market share in both iPhone and Mac, citing IDC data.

iPad revenue, however, declined 6% from a year earlier to $6.2 billion, which Parekh attributed to a difficult comparison against the launch of the A16-powered iPad in the prior-year period. Wearables, home and accessories revenue increased 6% to $7.9 billion, helped by wearables and accessories.

Apple’s installed base surpassed 2.5 billion active devices, reaching all-time highs across major product categories and geographic segments, according to Parekh.

Services Sets Records Despite Currency Pressure Services revenue rose 12% to a June-quarter record of $30.7 billion. Apple said it set revenue records in every services category, including all-time records in cloud services and payment services. The company surpassed 1.5 billion paid subscriptions, while both transacting accounts and paid accounts reached all-time highs.

Still, Parekh said foreign exchange was the main factor behind the sequential slowdown in services growth. He also cited a year-over-year comparison affected by the theatrical release of F1 in the prior period, headwinds in mobile gaming, and changes to the App Store business model in certain countries.

Apple said App Store revenue still reached a June-quarter record. Parekh said Apple continues to operate under a U.S. court ruling affecting link-out transactions and that the company was pleased the Supreme Court would hear its appeal.

Supply Constraints and Memory Costs Shape Outlook For the September quarter, Apple forecast total revenue growth of 9% to 11% year over year. Parekh said the outlook assumes current global tariff rates and policies remain in place and that the macroeconomic outlook does not worsen.

The company expects foreign exchange to reduce the year-over-year total-company growth rate by roughly 2.5 percentage points sequentially from the June quarter to the September quarter. It also expects supply constraints to increase significantly and affect iPhone, Mac and iPad.

Cook said the supply limitations were primarily related to availability of advanced manufacturing nodes used for Apple’s system-on-chip production. He characterized the issue as a demand-forecast challenge rather than a supplier problem, saying demand for iPhone and Mac had exceeded Apple’s expectations.

Apple expects iPhone revenue growth in the September quarter to be in the mid-teens year over year. Services growth, excluding the additional foreign-exchange effect, is expected to be broadly similar to the June-quarter rate.

Gross margin is expected to range from 47% to 48%, including an anticipated benefit of about one percentage point from tariff refunds. Operating expenses are projected to be between $19.1 billion and $19.4 billion.

Memory costs remain a central concern. Cook said Apple paid more for memory in the March quarter than in the December quarter, significantly more in the June quarter than in March, and expects still-higher memory costs in the September quarter. He said the company had “reluctantly” raised prices amid what he called a “100-year flood” of memory-price increases.

Parekh said memory costs accounted for more than the full sequential decline in adjusted gross margin from the March quarter through the September-quarter midpoint of guidance, with partial offsets from carry-in inventory, lower costs for certain non-memory components and product mix.

AI, U.S. Manufacturing and Leadership Transition Cook highlighted Apple’s planned Siri AI rollout, describing the updated assistant as private, based on personal context and integrated throughout the company’s platforms. He said developer and public-beta feedback had been strongly positive. Apple expects to offer iCloud+ upgrade options for users with heavier AI usage, though Cook said it was too early to provide a complete plan for recovering associated compute costs.

In Europe, Cook said Apple is working with regulators toward a potential Siri AI launch, while noting that the Mac version is not subject to the same regulations as iPhone and iPad. In China, Apple recently received approval to ship initial Apple Intelligence features and is working through that rollout, with further work required for Siri AI.

Apple also pointed to U.S. supply-chain investments, including a multiyear Broadcom agreement expected to exceed $30 billion and plans to produce Mac mini systems at its Advanced Manufacturing Center in Houston later this year.

The board declared a cash dividend of $0.27 per share, payable Aug. 13 to shareholders of record as of Aug. 10. During the quarter, Apple returned $33 billion to shareholders, including $25.8 billion in share repurchases and $4 billion in dividends and equivalents.

About Apple (NASDAQ:AAPL)Apple Inc NASDAQ: AAPL is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple's principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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As the generative AI boom drives steep demand for hardware components, Apple and other hardware makers are facing what outgoing CEO Tim Cook calls “a hundred-year flood [on] memory pricing,” which is severely impacting the cost of producing iPhones, MacBooks, and other devices.

Apple described its recent earnings report as its “strongest June quarter ever,” with iPhone and Mac sales performing better than expected, growing 22% and 29%, respectively, year-over-year. Yet the company is bracing for memory shortages, known as RAMageddon, to get even worse. Apple’s biggest challenge is securing the advanced memory nodes used in its Apple silicon chips, which power the A-Series and M-Series processors used in iPhones and Macs.

“We continue to expect high levels of demand. However, with less flexibility in supply chain, we expect the impact from the supply constraints to increase significantly sequentially,” Cook said on Apple’s quarterly earnings call. “We’re seeing some very significant constraints currently with limited flexibility in the supply chain to remedy it.”

Apple is evidently worried enough about supply shortages that it reported $11.1 billion in inventory, nearly double the $5.7 billion it reported last September. This marks a break from Cook’s long-held supply chain approach, which has emphasized minimizing how much inventory Apple has on hand.

These constraints led Apple to “reluctantly” raise the price of Macs and iPads last month, Cook added. Other companies that have raised hardware prices include Meta, Samsung, Microsoft, and Sony.

“We’re going to be scrambling on the supply side, essentially,” Cook said.

For the upcoming quarter, Apple is predicting revenue growth between 9% and 11% year-over-year. But in the last several quarters, Apple has maintained about 16% year-over-year growth. Of course, that worries investors — Apple stock dropped 6% in after-hours trading.

When Senior VP of Hardware Engineering John Ternus steps into the CEO role in September, the company could be facing a rough patch, but at least Apple isn’t alone in its supply struggles.

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Amanda Silberling is a senior writer at TechCrunch covering the intersection of technology and culture. She has also written for publications like Polygon, MTV, the Kenyon Review, NPR, and Business Insider. She is the co-host of Wow If True, a podcast about internet culture, with science fiction author Isabel J. Kim. Prior to joining TechCrunch, she worked as a grassroots organizer, museum educator, and film festival coordinator. She holds a B.A. in English from the University of Pennsylvania and served as a Princeton in Asia Fellow in Laos.

You can contact or verify outreach from Amanda by emailing [email protected] or via encrypted message at @amanda.100 on Signal.

John Blank breaks down Apple ahead of its earnings report, calling it a premier company while discussing how investors should approach the stock in the current environment. He shares his outlooks on taking profits, letting the stock "sweeten" over the coming months, and what to watch as Tim Cook prepares for his final earnings call as CEO.

CUPERTINO, Calif.--(BUSINESS WIRE)--Apple® today announced financial results for its fiscal 2026 third quarter ended June 27, 2026. The Company posted quarterly revenue of $109.4 billion, up 16 percent year over year. Company gross margin was 50.1 percent, including a favorable impact of approximately 2 percentage points from tariff refunds. Diluted earnings per share was $2.02, up 29 percent year over year, and included a favorable impact of $0.11 from tariff refunds. “Today, Apple is proud to.