Apple posted $98 billion in revenue for its fiscal third quarter ended June 2026, beating analyst consensus estimates of $94.7 billion and marking the company’s highest-ever quarterly revenue outside of the holiday period. Net income reached $26.4 billion, up 18 percent year-over-year, as margin expansion from the services business offset softer performance in Mac hardware.
iPhone sales accounted for $52 billion of the total, supported by strong pre-order demand for the iPhone 17 lineup announced at WWDC in June. Pre-orders opened August 15 and sold out within six hours in the US, UK, and Japan, according to third-party tracking firm Consumer Intelligence Research Partners. Apple has not released official pre-order numbers, as is its standard practice.
Services crosses $30 billion for the first time
The quarter’s most notable milestone was the Services segment crossing $30 billion in a single quarter for the first time, reaching $30.4 billion — up 22 percent year-over-year. The segment includes the App Store, Apple Music, Apple TV+, iCloud, Apple Pay, and Apple Intelligence subscription tiers introduced with iOS 18.4.
Apple CEO Tim Cook described the performance during the earnings call as reflecting “the deepening integration of Apple Intelligence across our ecosystem.” The Apple Intelligence suite, which provides AI writing assistance, image generation, and enhanced Siri capabilities, is now available across iPhone 16 and iPhone 17 models as well as recent Macs and iPads. Cook said over 600 million users have enabled at least one Apple Intelligence feature since the suite’s launch.
iPhone 17 lineup and pricing
The iPhone 17 lineup spans four models. The base iPhone 17 starts at $799 and for the first time includes a periscope telephoto camera previously reserved for Pro models. The iPhone 17 Plus starts at $899. The iPhone 17 Pro and Pro Max, starting at $999 and $1,199 respectively, add a new titanium alloy frame, a 48-megapixel ultrawide sensor, and a thermal management system Apple said is designed to sustain peak processor performance during extended AI workloads without throttling.
All four models ship with Apple’s A19 chip, built on TSMC’s second-generation 3-nanometre process. Apple said the A19 delivers a 25 percent CPU performance improvement over the A18 in the iPhone 16 series, with the largest gains in machine learning tasks used by Apple Intelligence.
Mac declines, iPad rebounds
Mac revenue declined 4 percent year-over-year to $7.2 billion, which Apple attributed to a period of constrained supply ahead of an anticipated Mac lineup refresh. Multiple analyst reports expect a new MacBook Pro and Mac mini with M5 chips to be announced before the end of calendar 2026.
iPad revenue rose 12 percent to $6.8 billion following the M5 iPad Pro launch in May. Apple’s gross margin expanded to 47.1 percent, up from 44.5 percent in the year-ago quarter, reflecting the higher contribution from the services business and ongoing efficiency gains in component procurement through its supplier relationships in Asia.
