Apple reported record revenue of $109.4 billion and EPS of $2.02 for the third quarter of fiscal 2026. It was reported that CEO Tim Cook will change to John Ternus effective 1 September, while the results highlighted an ecosystem strategy resilient to price increases despite the headwind of surging DRAM prices.
Apple reported results for the third quarter of fiscal 2026, with revenue of $109.417 billion, net income of $29.789 billion and diluted EPS of $2.02. All three figures were well above the year-earlier period and reached record highs. iPhone, Mac and Services each set new records, while all regions achieved double-digit growth.
The results are expected to be CEO Tim Cook's final earnings announcement. In April, Apple announced that the CEO would change from Tim Cook to John Ternus, senior vice president of Hardware Engineering, effective 1 September 2026. The market was divided in its assessment of the results, and the share price fell at times in after-hours trading.
There has also been debate over the assessment of Apple's AI strategy, with the company indicating that it intends to focus on strengthening on-device AI. The sharp rise in DRAM prices has become a focal point amid soaring semiconductor costs and supply constraints. Price revisions are moving forward for some Mac and iPad configurations, while iPhone prices are expected to remain unchanged for now.
Rising DRAM prices and shortages are expected to weigh on the next quarter. At the same time, the ecosystem's resilience to price revisions, together with features such as trade-ins and installment payments that support high resale value, has been cited as a factor behind customers' tolerance for price increases. The outlook presented alongside the results remains cautious.