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Apple’s Cook Delivers a Farewell Earnings Report: Results Beat, Outlook Misses

2026-08-01·newswire-us-stock-003129
Apple’s Cook Delivers a Farewell Earnings Report: Results Beat, Outlook Misses.

Apple CEO Tim Cook’s farewell earnings report arrived under the shadow of production bottlenecks at Taiwan Semiconductor Manufacturing Co. and surging memory prices. Early Friday morning Beijing time, the consumer electronics giant reported results for the third quarter of fiscal 2026, ended June 27.

As of publication, Apple shares were down more than 6% in after-hours trading because supply shortages weighed on its current-quarter sales outlook. If that decline holds through Friday’s close, Apple will surrender its position as the world’s most valuable stock to Nvidia.

Apple reported fiscal third-quarter revenue of $109.417 billion, up 16% from a year earlier, and net income of $29.789 billion, up 27%. Diluted earnings per share were $2.02, including a favorable $0.11 impact from tariff rebates. All three figures exceeded market expectations.

At quarter-end, Apple’s cash and cash equivalents had increased by $3.6 billion to $39.5 billion. Apple said the quarter was one of the strongest June quarters in its history, with both earnings per share and operating cash flow reaching record highs for a June quarter. By product category, the iPhone remained Apple’s main growth engine.

Quarterly iPhone revenue was $54.252 billion, up about 22% from a year earlier and a record for the period. Mac revenue was $10.352 billion, up about 29%. Apple introduced several new computers in March, including the MacBook Neo, the M5-powered MacBook Pro and the MacBook Air.

Cook said Mac sales in emerging markets during the third quarter—especially in China—reached an all-time high. iPad revenue was $6.191 billion, down from a year earlier. Revenue from wearables, home and accessories was $7.883 billion, up about 8%.

Services, including Apple Music, the App Store, iCloud subscriptions, streaming video and other digital products, generated $30.739 billion in third-quarter revenue, an increase of only 12% that disappointed investors. By region, Apple’s third-quarter revenue in Greater China reached $18.82 billion, up more than 22% from a year earlier.

That matched Europe as the company’s fastest-growing region. The factors that drove the share-price decline emerged mainly during Apple’s earnings call. Chief Financial Officer Kevin Parekh said revenue growth for the fiscal fourth quarter ending in September was expected to be 9% to 11%, well below the market’s 12.1% expectation.

Parekh also said the current quarter’s iPhone, Mac and iPad businesses would face an “increasing impact from supply constraints.” Cook added that supply-chain flexibility was below normal, with the main problems occurring in advanced-process chip production.

Cook said supply constraints in the June quarter had been concentrated in Mac products, primarily because demand was “far higher than expected.” He added that the sequential impact of supply constraints on the iPhone, Mac and iPad would expand significantly.

Prominent technology reporter Mark Gurman criticized the disclosure, saying it meant Cook had acknowledged that Apple’s demand forecasts for chip procurement had been wrong, resulting in the current supply constraints. Cook then discussed the pressure from higher memory prices.

He said Apple paid more for memory in the March quarter than in the December quarter, and more in the June quarter than in the March quarter. Memory costs are expected to rise further in the September quarter.

Responding indirectly to market reports that Apple was seeking memory chips from China’s ChangXin Memory Technologies, Cook said: “We are still evaluating this from a source-of-supply perspective. As is well known, there are three major suppliers in the DRAM market.

Clearly, having more suppliers would be a good thing and would help ease pressure on the supply side. It is not yet clear what the impact would be on pricing, but it could perhaps help on the supply side.”

#Stocks #Nvidia #Apple #Semiconductors #Earnings

Full text

Apple’s Cook Delivers a Farewell Earnings Report: Results Beat, Outlook Misses

Apple CEO Tim Cook’s farewell earnings report arrived under the shadow of production bottlenecks at Taiwan Semiconductor Manufacturing Co. and surging memory prices. Early Friday morning Beijing time, the consumer electronics giant reported results for the third quarter of fiscal 2026, ended June 27. As of publication, Apple shares were down more than 6% in after-hours trading because supply shortages weighed on its current-quarter sales outlook. If that decline holds through Friday’s close, Apple will surrender its position as the world’s most valuable stock to Nvidia. Apple reported fiscal third-quarter revenue of $109.417 billion, up 16% from a year earlier, and net income of $29.789 billion, up 27%. Diluted earnings per share were $2.02, including a favorable $0.11 impact from tariff rebates. All three figures exceeded market expectations. At quarter-end, Apple’s cash and cash equivalents had increased by $3.6 billion to $39.5 billion. Apple said the quarter was one of the strongest June quarters in its history, with both earnings per share and operating cash flow reaching record highs for a June quarter. By product category, the iPhone remained Apple’s main growth engine. Quarterly iPhone revenue was $54.252 billion, up about 22% from a year earlier and a record for the period. Mac revenue was $10.352 billion, up about 29%. Apple introduced several new computers in March, including the MacBook Neo, the M5-powered MacBook Pro and the MacBook Air. Cook said Mac sales in emerging markets during the third quarter—especially in China—reached an all-time high. iPad revenue was $6.191 billion, down from a year earlier. Revenue from wearables, home and accessories was $7.883 billion, up about 8%. Services, including Apple Music, the App Store, iCloud subscriptions, streaming video and other digital products, generated $30.739 billion in third-quarter revenue, an increase of only 12% that disappointed investors. By region, Apple’s third-quarter revenue in Greater China reached $18.82 billion, up more than 22% from a year earlier. That matched Europe as the company’s fastest-growing region. The factors that drove the share-price decline emerged mainly during Apple’s earnings call. Chief Financial Officer Kevin Parekh said revenue growth for the fiscal fourth quarter ending in September was expected to be 9% to 11%, well below the market’s 12.1% expectation. Parekh also said the current quarter’s iPhone, Mac and iPad businesses would face an “increasing impact from supply constraints.” Cook added that supply-chain flexibility was below normal, with the main problems occurring in advanced-process chip production. Cook said supply constraints in the June quarter had been concentrated in Mac products, primarily because demand was “far higher than expected.” He added that the sequential impact of supply constraints on the iPhone, Mac and iPad would expand significantly. Prominent technology reporter Mark Gurman criticized the disclosure, saying it meant Cook had acknowledged that Apple’s demand forecasts for chip procurement had been wrong, resulting in the current supply constraints. Cook then discussed the pressure from higher memory prices. He said Apple paid more for memory in the March quarter than in the December quarter, and more in the June quarter than in the March quarter. Memory costs are expected to rise further in the September quarter. Responding indirectly to market reports that Apple was seeking memory chips from China’s ChangXin Memory Technologies, Cook said: “We are still evaluating this from a source-of-supply perspective. As is well known, there are three major suppliers in the DRAM market. Clearly, having more suppliers would be a good thing and would help ease pressure on the supply side. It is not yet clear what the impact would be on pricing, but it could perhaps help on the supply side.”

Apple CEO Tim Cook’s farewell earnings report arrived under the shadow of production bottlenecks at Taiwan Semiconductor Manufacturing Co. and surging memory prices. Early Friday morning Beijing time, the consumer electronics giant reported results for the third quarter of fiscal 2026, ended June 27. As of publication, Apple shares were down more than 6% in after-hours trading because supply shortages weighed on its current-quarter sales outlook. If that decline holds through Friday’s close, Apple will surrender its position as the world’s most valuable stock to Nvidia.

Apple reported fiscal third-quarter revenue of $109.417 billion, up 16% from a year earlier, and net income of $29.789 billion, up 27%. Diluted earnings per share were $2.02, including a favorable $0.11 impact from tariff rebates. All three figures exceeded market expectations. At quarter-end, Apple’s cash and cash equivalents had increased by $3.6 billion to $39.5 billion.

Apple said the quarter was one of the strongest June quarters in its history, with both earnings per share and operating cash flow reaching record highs for a June quarter.

By product category, the iPhone remained Apple’s main growth engine. Quarterly iPhone revenue was $54.252 billion, up about 22% from a year earlier and a record for the period.

Mac revenue was $10.352 billion, up about 29%. Apple introduced several new computers in March, including the MacBook Neo, the M5-powered MacBook Pro and the MacBook Air. Cook said Mac sales in emerging markets during the third quarter—especially in China—reached an all-time high.

iPad revenue was $6.191 billion, down from a year earlier. Revenue from wearables, home and accessories was $7.883 billion, up about 8%.

Services, including Apple Music, the App Store, iCloud subscriptions, streaming video and other digital products, generated $30.739 billion in third-quarter revenue, an increase of only 12% that disappointed investors.

By region, Apple’s third-quarter revenue in Greater China reached $18.82 billion, up more than 22% from a year earlier. That matched Europe as the company’s fastest-growing region.

The factors that drove the share-price decline emerged mainly during Apple’s earnings call. Chief Financial Officer Kevin Parekh said revenue growth for the fiscal fourth quarter ending in September was expected to be 9% to 11%, well below the market’s 12.1% expectation.

Parekh also said the current quarter’s iPhone, Mac and iPad businesses would face an “increasing impact from supply constraints.” Cook added that supply-chain flexibility was below normal, with the main problems occurring in advanced-process chip production.

Cook said supply constraints in the June quarter had been concentrated in Mac products, primarily because demand was “far higher than expected.” He added that the sequential impact of supply constraints on the iPhone, Mac and iPad would expand significantly.

Prominent technology reporter Mark Gurman criticized the disclosure, saying it meant Cook had acknowledged that Apple’s demand forecasts for chip procurement had been wrong, resulting in the current supply constraints.

Cook then discussed the pressure from higher memory prices. He said Apple paid more for memory in the March quarter than in the December quarter, and more in the June quarter than in the March quarter. Memory costs are expected to rise further in the September quarter.

Responding indirectly to market reports that Apple was seeking memory chips from China’s ChangXin Memory Technologies, Cook said: “We are still evaluating this from a source-of-supply perspective. As is well known, there are three major suppliers in the DRAM market. Clearly, having more suppliers would be a good thing and would help ease pressure on the supply side. It is not yet clear what the impact would be on pricing, but it could perhaps help on the supply side.”

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