Apple fiscal third quarter 2026 earnings explained: products, regions and valuation multiples
Apple earned $29.8 billion under GAAP in the quarter ended June 27, 2026, against $29.6 billion in the quarter before. A look at its products, regions, tariff refunds and what the numbers say about valuation.
Apple reported results for the fiscal third quarter of 2026 on July 30, 2026. Apple's fiscal year ends on the last Saturday of September, so this quarter covers the three months ended June 27, 2026. Revenue was $109,417 million and net income under GAAP, the standard US accounting rules, was $29,789 million, as reported by Apple. This article compares the quarter with the fiscal second quarter, which ended March 28, 2026. Every figure is sourced and dated, and every number worked out by us is labelled as a Dalsna Finance calculation. [1][2][3]
This is Apple's latest reported quarter as of this writing. The fiscal fourth quarter, the three months that end in late September, has not been reported yet. Dalsna Finance will cover it in a separate article once Apple reports it. [2]
Apple in brief
Apple designs and sells iPhone, iPad, Mac, AirPods, Apple Watch and Apple Vision Pro, and it runs services such as the App Store, Apple Music, Apple Pay, iCloud and Apple TV. Its release traces the company's role in personal technology back to the Macintosh in 1984 and says it has more than 150,000 employees. Its common stock trades on the Nasdaq Stock Market under the ticker AAPL. [1][4]
The quarter was the last one reported with Tim Cook as chief executive. Apple said in an amended filing that John Ternus took over as CEO and Cook became Executive Chair of the board, both effective September 1, 2026. Ternus joined Cook on the July 30 call with analysts, as reported by Qatar Tribune. [4][5][1]
What Apple sells: products and services
Apple splits its sales into Products and Services. Products are reported in four categories: iPhone, Mac, iPad and Wearables, Home and Accessories. Services is the fifth line. In the third quarter Products brought in $78,678 million and Services $30,739 million. iPhone alone was $54,252 million, about half of all revenue (Dalsna Finance calculation: $54,252 million divided by $109,417 million is 49.6%). [1][2]
Against the same quarter a year earlier, total revenue rose 16%, as reported by Apple. Its quarterly report says iPhone sales grew mainly on higher sales of Pro models, Mac sales grew on stronger laptop sales and Services grew primarily on advertising and cloud services. Those reasons explain the year over year change, not the move from the second quarter. Against the second quarter, iPhone and iPad sales fell while Mac sales rose 23.3% (Dalsna Finance calculation). [1][2][3]
| Category | Q2 FY2026 | Q3 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| iPhone | 56,994 | 54,252 | Down 2,742 | Down 4.8% |
| Mac | 8,399 | 10,352 | Up 1,953 | Up 23.3% |
| iPad | 6,914 | 6,191 | Down 723 | Down 10.5% |
| Wearables, Home and Accessories | 7,901 | 7,883 | Down 18 | Down 0.2% |
| Services | 30,976 | 30,739 | Down 237 | Down 0.8% |
| Total net sales | 111,184 | 109,417 | Down 1,767 | Down 1.6% |
As reported by Apple in its second and third quarter releases. The change columns are a Dalsna Finance calculation: Change is Q3 minus Q2 and Change (%) is that change divided by Q2, times 100, worked from the figures as filed and rounded to one decimal at the end. [1][3]
Five regional segments
Apple's reportable segments are regions, not products: the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. The Americas was the largest at $45,781 million in the third quarter. Europe grew the most from the second quarter, while Greater China, Japan and Rest of Asia Pacific fell. [1][2][3]
Against a year earlier, the quarterly report says every region grew, with higher iPhone sales named as a driver in each. It adds that a stronger renminbi helped Greater China sales and a weaker yen hurt Japan sales compared with the year before. Apple gave no reasons for the change from the second quarter, so we do not offer any. [2]
| Segment | Q2 FY2026 | Q3 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| Americas | 45,093 | 45,781 | Up 688 | Up 1.5% |
| Europe | 28,055 | 29,395 | Up 1,340 | Up 4.8% |
| Greater China | 20,497 | 18,816 | Down 1,681 | Down 8.2% |
| Japan | 8,401 | 6,554 | Down 1,847 | Down 22.0% |
| Rest of Asia Pacific | 9,138 | 8,871 | Down 267 | Down 2.9% |
As reported by Apple in its second and third quarter releases. The change columns are a Dalsna Finance calculation, worked as in the table above. [1][3]
The numbers, quarter over quarter
Revenue slipped to $109,417 million from $111,184 million, and operating income, the profit from running the business before interest, investments and taxes, eased to $35,695 million from $35,885 million. Net income still rose a little, to $29,789 million from $29,578 million, because other income swung to a gain of $572 million from a loss of $52 million. Profit margin, net income divided by revenue, was 27.2% against 26.6% (Dalsna Finance calculation). [1][3]
Gross margin, revenue minus the cost of the products and services sold, was 50.1% of revenue. Apple said that figure included a favourable effect of approximately 2 percentage points from tariff refunds, and that the refunds added $0.11 to diluted EPS. The quarterly report explains that in February 2026 the US Supreme Court struck down certain tariffs imposed under the International Emergency Economic Powers Act, that Apple applied for refunds and that it books refunds received as a reduction of products cost of sales. Research and development spending rose to $11,729 million, and the report links the year over year increase mainly to infrastructure costs, including investment in artificial intelligence, and to headcount. [1][2]
Apple reports its results only under GAAP. Its release gives no adjusted, or non GAAP, earnings figure, so this article has no adjusted earnings line and no adjusted multiples. The tariff refund effect is pointed out instead, and taken out of the operating margin case further down. [1]
| Measure | Q2 FY2026 | Q3 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| Total net sales | 111,184 | 109,417 | Down 1,767 | Down 1.6% |
| Gross margin | 54,781 | 54,770 | Down 11 | Down 0.0% |
| Research and development | 11,419 | 11,729 | Up 310 | Up 2.7% |
| Selling, general and administrative | 7,477 | 7,346 | Down 131 | Down 1.8% |
| Operating income | 35,885 | 35,695 | Down 190 | Down 0.5% |
| Other income or expense, net | Loss of 52 | 572 | Up 624 | Not meaningful |
| Provision for income taxes | 6,255 | 6,478 | Up 223 | Up 3.6% |
| Net income (GAAP) | 29,578 | 29,789 | Up 211 | Up 0.7% |
| Gross margin percentage | 49.3% | 50.1% | Up 0.8 percentage points | Not meaningful |
| Operating margin | 32.3% | 32.6% | Up 0.3 percentage points | Not meaningful |
| Profit margin | 26.6% | 27.2% | Up 0.6 percentage points | Not meaningful |
| Diluted shares (millions) | 14,725.9 | 14,714.7 | Down 11.2 | Down 0.1% |
As reported by Apple, except these Dalsna Finance calculations: the three margins (each line divided by total net sales) and the change columns. Change is Q3 minus Q2, in percentage points for margins. Change (%) divides it by Q2, times 100, rounded to one decimal at the end. It is not meaningful from a loss base, as a percentage of a loss has no sensible reading, or for margins, which are already percentages. Diluted shares are the weighted average used for EPS. [1][3]
Cash and shareholder returns
Cash generated by operating activities was $116,996 million in the first nine months of fiscal 2026 and $82,627 million in the first six, so about $34,369 million came in the third quarter (Dalsna Finance calculation). The quarterly report says Apple repurchased $25.8 billion of its common stock in the quarter and paid $4.0 billion of dividends and dividend equivalents. The board declared a dividend of $0.27 a share, the same as the quarter before, when it was raised by 4% and the board authorized an additional program to repurchase up to $100 billion of stock. [1][2][3]
At June 27, 2026 Apple held $146,517 million of cash, cash equivalents and marketable securities, current and non current, against $82,347 million of term debt and $1,997 million of commercial paper (Dalsna Finance calculation for the sums, from the balance sheet in the release). [1]
Earnings per share
Earnings per share, or EPS, is profit divided by the number of shares. The diluted figure also counts shares that could be issued under stock awards. Apple reported diluted EPS of $2.02 for the third quarter and $2.01 for the second. Dividing net income by the diluted share count Apple reports gives the same results. Apple said the third quarter figure included a favourable effect of $0.11 from tariff refunds. [1][3]
| Quarter | Net income (GAAP) | Diluted shares | Net income divided by shares | Diluted EPS as reported |
|---|---|---|---|---|
| Q2 FY2026 | 29,578 | 14,725.9 | $2.01 | $2.01 |
| Q3 FY2026 | 29,789 | 14,714.7 | $2.02 | $2.02 |
Net income, shares and reported EPS as reported by Apple. The division column is a Dalsna Finance calculation, using the share counts in thousands as filed and rounded to the cent. Apple reports no adjusted EPS. [1][3]
- Diluted EPS (GAAP): Q3 includes a $0.11 benefit from tariff refunds, as reported by Apple.
| Diluted EPS (GAAP) | |
|---|---|
| Q2 FY2026 | $2.01 |
| Q3 FY2026 | $2.02 |
As reported by Apple. The arithmetic is in the table above. Apple reports no adjusted EPS, so there is no second series. [1][3]
What the market values Apple at
Market capitalization, or market cap, is what the stock market values the whole company at: the share price times the number of shares. Apple shares closed at $344.63 on Friday, October 30, 2026, as reported by StockAnalysis. The cover of the third quarter report lists 14,594,180,000 shares of common stock outstanding as of July 17, 2026, and Apple has one class of common stock. That gives a market cap of about $5,029.6 billion, or about $5.03 trillion (Dalsna Finance calculation). Every multiple and share price below uses this one share count. [6][2]
Keep the timing in mind. The price is from more than four months after the quarter ended, so it reflects news that is not in these results, including Apple's outlook for the September quarter and the handover to a new chief executive on September 1. The earnings behind every multiple stop at June 27, 2026. The multiples below are therefore today's price set against the third quarter's numbers, not a valuation on results that are not yet out. [6][2][4][5]
- Closing price of $344.63 on October 30, 2026, as reported by StockAnalysis
- Times 14,594,180,000 shares outstanding on July 17, 2026, from the cover of the third quarter report
Market cap of about $5,029,592.3 million, or about $5.03 trillion
Dalsna Finance calculation, rounded at the end. The multiples below divide the unrounded market cap. [6][2]
Six valuation multiples
The price to earnings ratio, or P/E, is market cap divided by a year of earnings. It shows how many dollars the market is paying for each dollar of yearly profit. Annualised means one quarter multiplied by four, so it assumes the third quarter's conditions lasted a full year. Net income of $29,789 million times 4 is $119,156 million, which gives an annualised P/E of 42.2 (Dalsna Finance calculation). Apple's first quarter, which includes the holiday season, has historically been its biggest, so one quarter times four is only a rough guide to a year. [1][6][2]
A forward P/E uses an estimate of future earnings. The full year fiscal 2026 EPS estimates we found were on data aggregator pages that disagreed with each other, and we could not check any of them against a dated original report. Apple's own diluted EPS for the first nine months of fiscal 2026 was already $6.88. We use no estimate, so the forward P/E is not calculated. [1]
A trailing P/E, sometimes called a historical P/E, uses the last four reported quarters, here the twelve months to June 27, 2026. Net income over that period added up to $128,930 million, which gives a trailing P/E of 39.0 (Dalsna Finance calculation). Because Apple reports no adjusted earnings, the three adjusted multiples are not applicable. [7][8][3][1][6][2]
- Third quarter fiscal 2026 net income of $29,789 million times 4 is $119,156 million
- Market cap of $5,029,592.3 million divided by $119,156 million
Annualised P/E of 42.2
Dalsna Finance calculation, using unrounded figures and rounded to one decimal. [1][6][2]
- Net income over the four quarters to June 27, 2026 added up to $128,930 million, as in the table further down
- Market cap of $5,029,592.3 million divided by $128,930 million
Trailing P/E of 39.0
Dalsna Finance calculation, using unrounded figures and rounded to one decimal. [7][8][3][1][6][2]
| Measure | Earnings used | Formula | Result |
|---|---|---|---|
| Annualised P/EUses Calculation 4: Annualised P/E | $119,156 million (Q3 FY2026 net income of $29,789 million times 4) | $5,029,592.3 million divided by $119,156 million | 42.2 |
| Annualised adjusted P/E | Apple reports no adjusted earnings | Not applicable | Not applicable |
| Forward P/E | No verified published estimate used | Not calculated | Not calculated |
| Forward adjusted P/E | Apple reports no adjusted earnings | Not applicable | Not applicable |
| Trailing P/E (four quarters to June 27, 2026)Uses Calculation 5: Trailing P/E | $128,930 million of net income | $5,029,592.3 million divided by $128,930 million | 39.0 |
| Trailing adjusted P/E | Apple reports no adjusted earnings | Not applicable | Not applicable |
Dalsna Finance calculation. Market cap is $344.63 times 14,594,180,000 shares, about $5,029,592.3 million. Multiples are rounded to one decimal. The forward P/E is not calculated and the adjusted multiples do not apply, as explained above. [6][2][1][3][8][7]
The last four quarters
Each quarter's net income and operating income come from Apple's own releases. Net income added up to $128,930 million and operating income to $154,859 million (Dalsna Finance calculation for the sums). The first quarter, the three months ended December 27, 2025, was much the largest, which fits what the quarterly report says about seasonality: Apple has historically sold more in its first quarter, partly because of holiday demand. [7][8][3][1][2]
| Quarter | Quarter ended | Net income (GAAP) | Operating income |
|---|---|---|---|
| Q4 FY2025 | September 27, 2025 | 27,466 | 32,427 |
| Q1 FY2026 | December 27, 2025 | 42,097 | 50,852 |
| Q2 FY2026 | March 28, 2026 | 29,578 | 35,885 |
| Q3 FY2026 | June 27, 2026 | 29,789 | 35,695 |
| Total, four quarters | Not applicable | 128,930 | 154,859 |
As reported by Apple in its releases for the fourth quarter of fiscal 2025 and the first three quarters of fiscal 2026. The totals are a Dalsna Finance calculation. Apple reports no adjusted earnings, so operating income is shown as the second measure. [7][8][3][1]
| Net income (GAAP) | Operating income | |
|---|---|---|
| Q4 FY2025 | $27,466m | $32,427m |
| Q1 FY2026 | $42,097m | $50,852m |
| Q2 FY2026 | $29,578m | $35,885m |
| Q3 FY2026 | $29,789m | $35,695m |
As reported by Apple. Every quarter is reported, none is worked out. The four quarter total is not charted. [7][8][3][1]
Two base cases: the third quarter held flat for a year
Suppose revenue stayed at the third quarter's level for a full year, with no growth and no decline: $109,417 million times 4, or $437,668 million. At the third quarter's profit margin that gives $119,156 million of net income, or $8.16 per share on the cover share count (Dalsna Finance calculation). [1][2]
Two items helped the quarter. Other income, which sits below the operating line, was a gain of $572 million against a loss the quarter before. And Apple said tariff refunds added approximately 2 percentage points to gross margin. Taking 2% of the quarter's $109,417 million of revenue gives about $2,188.3 million of refunds inside operating income (Dalsna Finance calculation, approximate because Apple's figure is approximate). Operating income less that amount is $33,506.7 million, an operating margin of 30.6%. Held flat for a year that is $134,026.6 million, or $9.18 per share. This case leaves out taxes and other income, so it is a pre tax figure and higher than earnings would be. [1][2]
The net margin case is simply the third quarter annualised, so at the annualised P/E it returns the October 30, 2026 close of $344.63 by construction. The other cells only show how the price moves when the same earnings are given a different multiple. The forward P/E was not calculated and Apple has no adjusted multiples, so those have no column. [1][6]
- Third quarter fiscal 2026 total net sales of $109,417 million
- Times 4, with no growth and no decline
$437,668 million of revenue a year
Dalsna Finance calculation. Hypothetical arithmetic for illustration only. These are not forecasts, price targets or investment advice. [1]
- Apple's stated favourable effect of approximately 2 percentage points on gross margin
- Times third quarter total net sales of $109,417 million is about $2,188.3 million
- Operating income of $35,695 million less $2,188.3 million is $33,506.7 million, which divided by $109,417 million is an operating margin of 30.6%
About $2,188.3 million of refunds and an operating margin of 30.6% without them
Dalsna Finance calculation, approximate because Apple gave the effect as approximately 2 points. Apple reported the refunds as a reduction of products cost of sales. [1][2]
- Net margin case: $437,668 million at the net margin ($29,789 million divided by $109,417 million, unrounded) is $119,156 million
- Operating margin case: $437,668 million at the operating margin without tariff refunds ($33,506.7 million divided by $109,417 million, unrounded) is $134,026.6 million
- Each divided by 14,594,180,000 shares
$8.16 per share in the net margin case and $9.18 in the operating margin case
Dalsna Finance calculation, using unrounded figures and rounded at the end. Hypothetical arithmetic for illustration only. These are not forecasts, price targets or investment advice. [1][2]
Last close: $344.63, at the close on October 30, 2026, from the latest quote on our Apple Inc. page (AAPL).
| Base case | Year of earnings (US dollars in millions) | Per share | At annualised P/E of 42.2 | At trailing P/E of 39.0 |
|---|---|---|---|---|
| Net margin caseUses Calculation 9: Base case earnings, net margin and operating margin, Calculation 4: Annualised P/E and Calculation 5: Trailing P/E | 119,156 | $8.16 | $344.63 (0.0%) | $318.50 (7.6% lower) |
| Operating margin case, without tariff refundsUses Calculation 9: Base case earnings, net margin and operating margin, Calculation 8: Tariff refunds in dollars, Calculation 4: Annualised P/E and Calculation 5: Trailing P/E | 134,026.6 | $9.18 | $387.64 (12.5% higher) | $358.25 (4.0% higher) |
Dalsna Finance calculation. Implied price is the multiple times a year of earnings divided by 14,594,180,000 shares, unrounded, rounded to the cent. Revenue is $109,417 million times 4. The operating margin case is before taxes and other income, so it is not like for like with the earnings behind the P/E values. The forward P/E was not calculated. [1][2][6][3][8][7]
Each percentage compares that hypothetical price with the price above, worked out from the rounded prices when this page was built. It is arithmetic, not a forecast.
Net margin case
Operating margin case, without tariff refunds
These are illustrations from the base case earnings held flat and the reference price shown, not forecasts or advice. Green bars sit above the reference price, red bars below and grey bars within 0.5% of it. The dashed line marks the reference price.
- Operating margin case: Without tariff refunds, before taxes and other income.
| Net margin case | Operating margin case | |
|---|---|---|
| Ann P/E 42.2 | $344.63 | $387.64 |
| Trail P/E 39.0 | $318.50 | $358.25 |
Dalsna Finance calculation, the four prices from the table above, at the annualised (Ann) and trailing (Trail) P/E. The forward P/E was not calculated and Apple has no adjusted multiples, so they have no bars. [1][2][6][3][8][7]
What management said
In the release chief financial officer Kevan Parekh said "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." Apple gave no full year revenue figure that could be used as a scenario, so this article has no management revenue scenarios. [1]
Qatar Tribune, drawing on agency reports, said Apple expects revenue in the September quarter to grow by 9% to 11% (a company projection, as reported). The paper said that range fell short of what analysts had expected and that Apple pointed to supply constraints, which Cook told analysts stemmed from stronger than expected demand for iPhone and Mac. [5]
What to watch
The fiscal fourth quarter report will show whether revenue landed inside the growth range Apple gave and whether tariff refunds still helped gross margin. The quarterly report says Apple faces supply constraints and rising costs for components such as memory and storage chips, and that it expects these trends to intensify (a company expectation), so the next report will show whether margins held up. It will also be the first report since John Ternus became chief executive. [5][2][4]
Several legal matters remain open, according to the quarterly report. On June 30, 2026 the US Supreme Court agreed to review the legal standard for civil contempt in Epic Games' case over App Store rules. The European Commission's Digital Markets Act investigations and a US Department of Justice antitrust lawsuit are also continuing, and Apple says it believes it complies with the Digital Markets Act and has substantial defenses in the Justice Department case. [2]
How these figures were made: inputs come from Apple's releases for the fourth quarter of fiscal 2025 and the first three quarters of fiscal 2026, its third quarter report and its September 1, 2026 amended filing on SEC EDGAR, plus the dated closing price named above. Calculations use unrounded inputs and are rounded only at the end, with multiples and margins to one decimal, per share figures and prices to the cent and dollar amounts in millions. [7][8][3][1][2][4][6]
Companies in this article: Apple Inc. (AAPL)
Sources
- Apple reports third quarter results (Form 8-K, Exhibit 99.1)
- Form 10-Q for the quarterly period ended June 27, 2026
- Apple reports second quarter results (Form 8-K, Exhibit 99.1)
- Form 8-K/A (Amendment No. 1), Item 5.02, CEO transition compensation arrangements
- Apple beats estimates, but outlook disappoints investors
- Apple (AAPL) Stock Price History
- Apple reports fourth quarter results (Form 8-K, Exhibit 99.1)
- Apple reports first quarter results (Form 8-K, Exhibit 99.1)
Written by Dalsna Finance from the public sources listed above. Every figure is cited to its source or shown as a labelled Dalsna Finance calculation. How we work: editorial standards. General information, not investment advice.