Q3 2026 Apple Inc Earnings Call Transcript
Key Points
- Apple Inc (AAPL) reported record June quarter revenue of $109.4 billion, up 16% year-over-year, with record revenue in every geographic segment.
- iPhone revenue grew 22% year-over-year to a June quarter record of $54.3 billion, driven by strong demand for the iPhone 17 family and market share gains.
- Mac revenue hit a June quarter record of $10.4 billion, up 29% year-over-year, fueled by the popularity of MacBook Neo and MacBook Pro, with all-time records for upgraders and new customers.
- Services revenue reached a June quarter record of $30.7 billion, up 12% year-over-year, with all-time records in cloud services and payment services, and paid subscriptions surpassed $1.5 billion.
- The company's installed base of active devices reached an all-time high of over 2.5 billion, and operating cash flow was a record $34.4 billion for the June quarter.
- Apple Inc (AAPL) announced a new multi-year agreement with Broadcom, expected to exceed $30 billion, as part of its largest-ever American manufacturing program commitment.
- Apple Inc (AAPL) expects September quarter revenue growth to decelerate to 9%-11% year-over-year due to significant supply constraints affecting iPhone, Mac, and iPad, and a 2.5 percentage point foreign exchange headwind.
- The company is facing significant supply constraints on advanced nodes for its SOCs, driven by demand exceeding expectations, with limited flexibility in the supply chain to remedy the issue.
- Memory costs are rising sharply, with Apple Inc (AAPL) expecting to pay even higher prices in the September quarter, which is a primary driver of expected gross margin decline to 47%-48%.
- The company had to reluctantly raise prices on iPad and Mac due to what Tim Cook described as a '100-year flood' in memory pricing, and the impact on demand is still uncertain.
- Services growth is facing headwinds from foreign exchange, expected to be a 5 percentage point drag year-over-year in the September quarter, along with softness in mobile gaming and App Store business model changes.
- The rollout of Siri AI is delayed in the European Union and China due to regulatory hurdles, limiting the initial availability of key AI features in those markets.
Good afternoon, and welcome to the Apple Q3 Fiscal Year 2026 Earnings Conference Call. My name is Suhasani Chandramouli, Director of Investor Relations. Today's call is being recorded.
Speaking first today is Apple CEO Tim Cook, followed by CFO Kevin Parek. Also joining us on today's call is incoming CEO John Turnis.
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.
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