Apple Revenue Reached $109.4 Billion as Memory Costs Test Ternus

Key Facts

Apple revenue reached about $109.4 billion in the fiscal third quarter ended June 27, 2026, up 16% year over year, according to results the company announced on July 30. The results came before John Ternus takes over as chief executive on September 1, facing a test of the company's ability to manage rising memory costs. Available information does not establish when a new financial report will be released or whether Ternus will present it, so July's results remain the latest documented performance here. Those results show strong revenue and earnings growth, but also included exceptional support for margins from tariff refunds. That makes assessing the effect of component costs on profitability an important focus when evaluating the company's performance going forward.

Gross margin was 50.1% for the quarter, including a positive impact of about two percentage points from tariff refunds, Apple said. Diluted earnings per share reached $2.02, up 29% year over year, including $0.11 per share from the effect of those refunds. The Associated Press reported that net income rose to $29.79 billion from $23.43 billion in the year-earlier period, an increase of 27%. Results exceeded analysts' average estimates of $1.89 per share and revenue of $109 billion, according to a FactSet survey cited by the news agency. Apple also said revenue grew at double-digit rates across iPhone, Mac and services, as well as in every geographic region. This means the starting point for assessing cost pressures was a quarter of broad-based growth, with tariff refunds contributing to margin and earnings levels.

By contrast, Tim Cook warned during the fiscal second-quarter earnings call that memory costs would have an increasing impact on the company's business after the current quarter. The Associated Press quoted him as saying that the company "believes memory costs will have an increasing impact on our business, and we will continue to evaluate that." The news agency linked a shortage of memory chips to the artificial intelligence boom and said Apple raised prices for Mac and iPad devices in June because of the shortage. On a subsequent call, the company said supply constraints would affect several Mac models during the June quarter because of the availability of advanced technology used to manufacture processors. These details show memory pressure intersecting with supply constraints and pricing decisions at a time when the company was recording growth across products and regions. Available information does not quantify the effect of these costs on the margin of a subsequent quarter.

In July, Apple had forecast revenue growth of between 9% and 11% year over year for the quarter ending in September, the Associated Press reported, citing the company's guidance. On the same call, it forecast iPhone, Mac and iPad supply constraints far higher than those recorded between March and June. After the third-quarter results were announced, analyst Montero said the September iPhone launch and price increases could help "soften the blow" from rising costs. These forecasts illustrate part of the balance the company faces: supporting revenue through pricing and products while managing supply constraints and memory costs. But they remain earlier guidance and estimates, and alone do not establish what was actually achieved in the quarter ended in September. The evidence did not provide a confirmed date for its results announcement.

In the market, Apple shares closed at $344.63 on October 30, 2026, according to EL7 data. The company's shares had fallen in after-hours trading following the third-quarter results, with the Associated Press reporting a 2.3% decline to $325.91. That move was tied to the results announcement session and does not represent the closing price on October 30. The comparison provides context for the share-price movement between the two observation dates, without by itself establishing the reason for the change. In light of the leadership transition that began in September, the next quarter's results and indicators of margins and supply remain points to watch in assessing the effect of memory pressures, but the available evidence does not specify when those results will be released.