Apple reports record June quarter earnings but guides below expectations amid memory pricing fears

Apple delivered a stronger-than-expected third fiscal quarter on July 30 with $109.4 billion in revenue, up 16% from the prior year, and earnings per share of $2.02, up 29% year-over-year. The company achieved record June quarter revenue and earnings, with double-digit growth across iPhone, Mac and Services segments and in all geographic regions. Gross margin came in at 50.1%, bolstered by approximately 2 percentage points of favorable impact from tariff refunds. However, the company's forward guidance sparked a sharp selloff: Apple said it expects September quarter revenue between $111.7 billion and $113.7 billion, below the $114.8 billion Wall Street consensus, citing headwinds from memory pricing. Management warned that elevated memory component costs are expected to increase and have mounting impact on the business beyond September. The stock fell sharply following the earnings call, erasing over $475 billion in market value during Friday's trading as investors reassessed the outlook despite record business results.

1. Q3 FY2026 revenue was $109.4 billion, up 16 percent year-over-year, with record June quarter results in total company revenue and earnings.
2. Diluted earnings per share was $2.02, up 29 percent year-over-year, including a $0.11 favorable impact from tariff refunds.
3. Gross margin was 50.1 percent, including approximately 2 percentage points of favorable impact from tariff refunds.
4. iPhone, Mac and Services revenue each hit new June quarter records, with double-digit growth across all geographic segments.
5. Fourth quarter guidance of $111.688 billion to $113.737 billion was below the $114.840 billion Street consensus estimate.
6. Management cited increasing memory component pricing as a constraint expected to have greater impact on the business beyond September.
7. The stock fell more than 9 percent on August 1 during Friday trading, resulting in a $475 billion loss in market capitalization.