| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 15 | 39.9x | 17.3x | Bottom tier | |
Growth | 68 | 14.2% | 7.1% | Top tier | |
Quality | 90 | 66.5% | 4.5% | Top tier | |
Safety | 83 | 0.2x | 2.6x | Top tier | |
Capital Return | 76 | 0.30% | 0.06% | Top tier | |
Momentum | 97 | 30.0% | -1.5% | Top tier | |
Sentiment | 41 | 33 | 3 | Around median |
The floor: what the company is worth if growth stopped today
75% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.13% as of 2026-10-21. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Apple combines hardware sales, led by iPhone, Mac, iPad, and wearables, with services delivered through its ecosystem, which includes App Store, iCloud, payments, content, and subscriptions. In quarter 3 of fiscal year 2026, ended 2026-06-27, product revenue totaled $78.7 billion and services revenue totaled $30.7 billion, while the active device base exceeded 2.5 billion devices and paid subscriptions exceeded 1.5 billion. This model allows the company to generate revenue from device sales, then expand spending within its ecosystem through services.
Apple generated revenue of $109.4 billion in quarter 3 of fiscal year 2026, up 16.4% from the same quarter a year earlier, with net income of $29.8 billion and diluted earnings per share of $2.02. Gross margin reached 50.1%, compared with 46.5% in quarter 3 of fiscal year 2025, while operating margin reached 32.6%, compared with 30.0% in the comparable quarter. However, tariff refunds added approximately two percentage points to gross margin in quarter 3 of fiscal year 2026, so its expansion does not entirely reflect a recurring improvement in operating economics.
iPhone remained the largest revenue source in quarter 3 of fiscal year 2026, generating $54.3 billion in revenue, up 22% from the same quarter a year earlier, while Mac generated $10.4 billion, up 29%, and services generated $30.7 billion, up 12%. Meanwhile, iPad revenue fell 6% to $6.2 billion, and wearables, home, and accessories revenue rose 6% to $7.9 billion from the same quarter a year earlier. According to EL7 data, operating cash flow for the quarter totaled $34.4 billion, highlighting the business's ability to generate cash alongside earnings growth.
Q3 FY2026
Last 12 months to 2026-06-27
When: 2026-11-02
Revenue growth in quarter 4 of fiscal year 2026 within the range of 9% to 11%
Gross margin in quarter 4 of fiscal year 2026 within the range of 47% to 48%
Inventory growth in quarter 4 of fiscal year 2026 compared with revenue growth
The median analyst price target is $358, within a range of $245 to $400 across 17 analysts, reflecting growth expectations and carrying an inherently optimistic bias. The discounted cash flow model produces a value of $166, within a range of $137 to $211, at a discount rate of 10.0%; it measures expected cash generation and carries an inherently conservative bias. The no-growth value is $86 at a discount rate of 10.0%, representing after-tax operating profit remaining constant forever. The methods agree on a ranking that places the value of continued growth above the scenario in which growth stops, but they differ clearly between the $358 analyst target and the $166 cash flow model value, because the former prices in growth expectations while the latter ties value to expected cash flows and their discounting. Apple ranks 30 out of 34 within the industry on EL7's valuation dimension, which compares its multiples with those of peers, based on data for the period ended 2026-06-27, adding caution to the valuation assessment without favoring a single value among the methods.
Figures in the text are as of 2026-10-18; the live price is shown at the top of the page.
iPhone generated $54.3 billion in revenue in quarter 3 of fiscal year 2026, ended 2026-06-27, and therefore remains Apple's largest revenue source. However, Mac generated $10.4 billion, up 29%, and services generated $30.7 billion, up 12%, from the same quarter a year earlier. Meanwhile, iPad revenue fell 6% to $6.2 billion in the same quarter. This mix means that growth diversification is already underway, but it has not eliminated the importance of the iPhone cycle or differences in performance across devices.
Gross margin reached 50.1% in quarter 3 of fiscal year 2026, ended 2026-06-27, compared with 46.5% in quarter 3 of fiscal year 2025. However, tariff refunds added approximately two percentage points to margin in quarter 3 of fiscal year 2026, so the entire level should not be treated as a recurring operating improvement. On the 2026-07-30 call, management guided to a margin of between 47% and 48% for quarter 4 of fiscal year 2026, with an expected benefit of approximately one percentage point from tariff refunds. Memory costs remain the primary factor management identified to explain margin pressure, alongside price increases for Mac and iPad.
Automated analysis for informational purposes only — not investment advice.
The 2026-07-30 call outlined two paths: supporting demand for devices capable of local processing, and the potential for heavy users to move to higher iCloud+ plans. Examples include MacBook Pro at Crédit Agricole, where AI work reduced manual processing time by more than 80%. On 2026-10-15, Meta and Apple announced a collaboration to enable developers to run open-source models directly on Mac. However, management did not identify separate revenue for Siri AI and acknowledged uncertainty over the balance between its operating costs and returns from subscription upgrades.
According to EL7 data, operating cash flow totaled $146.7 billion and free cash flow totaled $136.7 billion over the last 12 months through 2026-06-27. Share repurchases totaled $82.2 billion over the same period, while operating cash flow equaled 114% of net income of $128.9 billion. The diluted share count declined to 14.71 billion shares in quarter 3 of fiscal year 2026, ended 2026-06-27, from 14.95 billion shares in quarter 3 of fiscal year 2025. These figures support the business's ability to fund capital returns, while AI investment and operating needs remain among the uses of cash.
The earnings announcement date being used is 2026-11-02, which is an expected date. The first test is achieving revenue growth of between 9% and 11% from the same quarter a year earlier in quarter 4 of fiscal year 2026, in line with guidance from the 2026-07-30 call. The second test is the gross margin guidance of between 47% and 48% for the same quarter and Apple's ability to absorb memory costs. Management's comments on iPhone, Mac, and iPad availability are also particularly important because supply constraints were one of the two stated reasons for the expected growth slowdown.