Apple (AAPL) reported fiscal Q3 2026 earnings on July 30, 2026, for the quarter ended June 27, 2026: revenue of $109.4 billion, up 16% year over year, diluted earnings per share of $2.02, up 29%, and a gross margin of 50.1%, with iPhone, Mac, and Services each setting June quarter records [1]. Net income was $29.8 billion, and iPhone revenue rose 22% to $54.3 billion [2]. Despite the record, the stock fell 7.4% to $308.91 on July 31 and closed at $311.30 on August 20, 2026 [3]. This Apple fiscal Q3 2026 earnings recap explains the numbers, why the shares fell, and what the valuation now implies.
Apple fiscal Q3 2026 earnings: what the company reported
Growth was broad across products and regions. iPhone revenue was $54.3 billion, up 22% from $44.6 billion; Mac revenue rose 29% to $10.4 billion; Services rose 12% to $30.7 billion; Wearables, Home and Accessories rose 6% to $7.9 billion; and iPad fell 6% to $6.2 billion [2]. Every geographic segment grew by double digits: Americas rose 11% to $45.8 billion, Europe rose 22% to $29.4 billion, Greater China rose 22% to $18.8 billion, Japan rose 13% to $6.6 billion, and the rest of Asia Pacific rose 16% to $8.9 billion [2]. Operating income rose 27% to $35.7 billion, and research and development spending rose 32% to $11.7 billion [2].
| Metric | Fiscal Q3 2026 | Fiscal Q3 2025 | Change |
|---|---|---|---|
| Total net sales | $109,417 million | $94,036 million | Up 16% |
| iPhone | $54,252 million | $44,582 million | Up 22% |
| Mac | $10,352 million | $8,046 million | Up 29% |
| Services | $30,739 million | $27,423 million | Up 12% |
| Greater China | $18,816 million | $15,369 million | Up 22% |
| Operating income | $35,695 million | $28,202 million | Up 27% |
| Net income | $29,789 million | $23,434 million | Up 27% |
| Diluted EPS | $2.02 | $1.57 | Up 29% |
Tariff refunds and the balance sheet
Part of the margin gain was not recurring. Gross margin of 50.1% included a favorable impact of about 2 percentage points from tariff refunds, and diluted EPS included a $0.11 benefit from the same source [1]. Excluding the refund, EPS would have been about $1.91, still up 22%. The balance sheet remains a net cash position: cash and cash equivalents of $39.5 billion plus marketable securities of $22.9 billion current and $84.1 billion non-current total about $146.5 billion, against $84.3 billion of term debt and commercial paper [2]. Cash generated by operating activities was $117.0 billion for the first nine months of the fiscal year, up from $81.8 billion [2]. Apple declared a dividend of $0.27 per share payable August 13, 2026 [1]. Shares outstanding fell to 14,609 million from 14,773 million at the September 2025 fiscal year end as buybacks continued [2].
Why Apple stock fell after a record quarter
The decline says more about positioning than about the quarter. DataPorium's stock market data shows AAPL rising from $281.74 on June 29 to $340.08 on July 28, a gain of about 21% in one month before the report [3]. The stock closed at $333.43 on July 30, then fell 7.4% to $308.91 on July 31 on volume of about 132 million shares, close to double the prior day [3]. A 16% revenue gain and 29% EPS gain were strong, but a stock that has just risen 21% needs a result well above expectations to keep going, and about 2 points of the gross margin gain came from refunds rather than operations. Through August 20, 2026, the shares had held near the post-report level at $311.30, about 7% below the pre-report close [3].
Apple valuation after the report
With 14,609 million shares outstanding and a price of $311.30, Apple's market value is about $4.55 trillion [2][3]. Diluted EPS for the first nine months of fiscal 2026 was $6.88, up 22% from $5.62 [2]. Annualizing that nine-month figure gives roughly $9.17 per share, which puts the stock at about 34 times earnings, an approximation because the September quarter is usually smaller than the December quarter. That multiple is high for a company growing revenue 16%, but it reflects the quality of the earnings: 50% gross margins, a services line that grew 12% to $30.7 billion, and roughly $62 billion of net cash [2]. The main risk to the multiple is that iPhone growth of 22% partly reflects a strong product cycle and refund-supported pricing that may not repeat. The second risk is spending: research and development rose 32%, well ahead of revenue, and inventories nearly doubled to $11.1 billion from $5.7 billion at fiscal year end, which may signal component cost pressure or a build ahead of new products [2].
- Records: June quarter records for total revenue, EPS, iPhone, Mac, and Services [1].
- One-time help: about 2 points of gross margin and $0.11 of EPS from tariff refunds [1].
- Watch: iPad down 6%, R&D up 32%, inventories up to $11.1 billion [2].
What to watch next
The fiscal Q4 report, which covers the September quarter and the first weeks of the new iPhone cycle, will show whether the 22% iPhone growth carries into the launch. Investors may consider watching gross margin excluding refunds, Services growth against the 12% just reported, and Greater China, which grew 22% this quarter after a weak stretch. Capital return also matters: the falling share count is a steady contributor to EPS growth. Screening Apple against other large-cap technology names on DataPorium's stock screener can help put the 34 times multiple in context [3].
Apple's fiscal Q3 2026 quarter set records in revenue, iPhone, Mac, and Services, and the 7% drop that followed reflected a 21% pre-report rally and a tariff refund in the margin, not a weak business.
Key takeaways
- Fiscal Q3 2026 revenue rose 16% to $109.4 billion and diluted EPS rose 29% to $2.02, including $0.11 from tariff refunds [1].
- iPhone revenue rose 22% to $54.3 billion, Mac rose 29%, Services rose 12% to $30.7 billion, and every region grew by double digits [2].
- Net income was $29.8 billion, operating income was $35.7 billion, and net cash was about $62 billion [2].
- AAPL fell 7.4% to $308.91 on July 31 after a 21% run into the report, and closed at $311.30 on August 20, 2026 [3].
- At about $4.55 trillion, the stock trades near 34 times annualized nine-month EPS [2][3].
Frequently asked questions
What were Apple's fiscal Q3 2026 earnings?
Apple reported revenue of $109.4 billion, up 16%, net income of $29.8 billion, and diluted EPS of $2.02, up 29%, for the quarter ended June 27, 2026 [1][2].
How much iPhone revenue did Apple report in the June 2026 quarter?
iPhone net sales were $54.3 billion, up 22% from $44.6 billion a year earlier, a June quarter record [1][2].
Why did Apple stock drop after the July 2026 earnings report?
AAPL fell 7.4% on July 31, 2026, after rising about 21% in the month before the report; about 2 points of the gross margin gain came from tariff refunds, so the underlying beat was smaller than the headline [1][3].
Did tariff refunds affect Apple's results?
Yes. Tariff refunds added about 2 percentage points to the 50.1% gross margin and $0.11 to diluted EPS of $2.02 [1].
