The quarter beat a fairly strong expectation. Revenue reached $109.4 billion versus published consensus around $108.0–$108.8 billion, while diluted EPS was $2.02 versus roughly $1.88 expected.
| Metric | Q3 FY2026 | Q3 FY2025 | Change / expectation |
|---|---|---|---|
| Total net sales | $109.4B | $94.0B | +16%; above ~$108.0–$108.8B consensus (Income Statement) |
| Diluted EPS | $2.02 | $1.57 | +29%; above ~$1.88 consensus (Income Statement) |
| Gross margin | 50.1% | 46.5% | Includes roughly 2 percentage points from tariff refunds (Financial Highlights) |
| iPhone sales | $54.3B | $44.6B | +22% (Net sales by category) |
| Services sales | $30.7B | $27.4B | +12% (Net sales by category) |
| Greater China sales | $18.8B | $15.4B | +22% (Net sales by reportable segment) |
| Operating cash flow, nine months | $117.0B | $81.8B | +43% (Cash Flow statement) |
The EPS beat was less clean than the headline suggests. Apple said tariff refunds added approximately $0.11 to diluted EPS and about two percentage points to gross margin. Excluding that benefit, EPS was approximately $1.91—still modestly above consensus, but only narrowly. The reported 50.1% gross margin therefore implies roughly 48.1% before the refund effect (Financial Highlights).
The operating performance was broad, led by iPhone rather than Services alone. iPhone revenue rose 22%, Mac rose 29%, and Services rose 12%, while every geographic segment grew year over year. The weak spot was iPad, down about 6% to $6.2 billion; Wearables, Home and Accessories grew only about 6% (Net sales by category; Net sales by reportable segment).
The net result is a real but moderate beat, not a major reset. Revenue exceeded expectations and underlying EPS still cleared consensus, supported by strong iPhone demand and operating cash flow. However, a meaningful portion of the margin and EPS upside came from tariff refunds, and the filing provides no new forward revenue or margin outlook to establish a larger change in expectations.
Read the original 8-K on SEC EDGAR ↗