Apple
AAPL, NASDAQ, Tech & Internet
- Prev. close
- $313.44
- Volume
- 17.9M
- Market cap
- $4.6T
- Low-volatility blue chip
Why a candidate
Exp 29/100Company research
Researched 2026-08-20 17:40 KSTApple wrote into its own release that roughly 2 points of the quarter's 50.1 percent gross margin came from tariff refunds.
Apple's fiscal 2026 third quarter closed on 27 June 2026 with revenue of $109.4 billion and diluted earnings per share of $2.02. The release states that about 2 percentage points of the 50.1 percent gross margin, and $0.11 of the per-share figure, came from tariff refunds. The financial statements published alongside it split that margin in two, 40.1 percent on products against 75.6 percent on services, which is why services at 28 percent of revenue produce 42 percent of gross profit.
Key figures
- Q3 revenue
- $109.4bn
- 2026-06-27
- Gross margin
- 50.1%
- 2026-06-27
- Tariff refund effect
- about 2 points
- 2026-06-27
- Diluted EPS
- $2.02
- 2026-06-27
- Services gross margin
- 75.6%
- 2026-06-27
- Active devices
- over 2.5bn
- 2025-12-27
The footnote Apple attached to 50.1 percent
Apple put the 50.1 percent gross margin and the tariff refunds in the same sentence, crediting roughly 2 percentage points of the margin to those refunds. The $2.02 in diluted earnings per share carries $0.11 from the same source. Strip both out the way the company describes them and the margin lands near 48 percent, the per-share figure at $1.91. Set against the quarter ended 28 March 2026, gross profit barely moved, from $54.781 billion to $54.770 billion, while revenue fell from $111.2 billion to $109.4 billion, and that shrinking base alone lifted the margin from 49.3 to 50.1 percent. The refund is worth more than twice the 0.8 point of margin improvement it sits inside, so reading the two quarters off the margin line alone points the wrong way.
Products and services sit almost two to one on margin
The statements break revenue and cost of sales into products and services. Product revenue of $78.7 billion against $47.2 billion of cost leaves gross profit of $31.5 billion, a 40.1 percent margin. Services turned $30.7 billion of revenue and $7.5 billion of cost into $23.2 billion of gross profit, a 75.6 percent margin. That gap is why services, 28 percent of the top line, supply $23.2 billion of the $54.8 billion in total gross profit, or 42 percent.
Gross margin, Q3 fiscal 2026
- Services75.6%
- Apple total50.1%
- Products40.1%
iPhone took a larger share than a year ago
By category the quarter reads iPhone $54.3 billion, services $30.7 billion, Mac $10.4 billion, wearables, home and accessories $7.9 billion, iPad $6.2 billion. iPhone alone is 49.6 percent of revenue, up from 47.4 percent in the same quarter a year earlier. Mac went from $8.0 billion to $10.4 billion while iPad slipped from $6.6 billion to $6.2 billion. By region the split is Americas $45.8 billion, Europe $29.4 billion, Greater China $18.8 billion, rest of Asia Pacific $8.9 billion, Japan $6.6 billion. Greater China and Europe both grew 22 percent year over year, the fastest of the five, while the Americas, the largest, grew 11 percent. Research and development spending rose from $8.9 billion to $11.7 billion, up 32 percent, roughly twice the pace of the 16 percent revenue growth.
Q3 fiscal 2026 revenue by category ($bn)
Q3 fiscal 2026 revenue by region ($bn)
- Americas45.8
- Europe29.4
- Greater China18.8
- Rest of Asia Pacific8.9
- Japan6.6
Common questions
- What would the quarter have looked like without the tariff refunds?
- Take out the roughly 2 percentage points of gross margin and the $0.11 of diluted earnings per share that Apple attributes to them. Gross margin lands near 48 percent rather than 50.1 percent, and earnings per share at $1.91 rather than $2.02. Both attributions are stated in the body of Apple's own third quarter release.
- Which side earns more, products or services?
- Services, on margin. Services gross margin was 75.6 percent in the third quarter of fiscal 2026 against 40.1 percent on products. In dollars products are larger, $31.5 billion of gross profit against $23.2 billion, but services deliver 42 percent of total gross profit on 28 percent of revenue.
- Is iPhone's share of revenue shrinking?
- It grew this quarter. iPhone revenue of $54.3 billion was 49.6 percent of the $109.4 billion total, up from 47.4 percent in the same quarter a year earlier. Over the same span iPad revenue slipped from $6.6 billion to $6.2 billion.
Sources
- 1.Apple reports third quarter results Apple Newsroom, as of 2026-07-30
- 2.FY26 Q3 Consolidated Financial Statements Apple Newsroom, as of 2026-07-30
- 3.FY26 Q2 Consolidated Financial Statements Apple Newsroom, as of 2026-04-30
- 4.Apple reports first quarter results Apple Newsroom, as of 2026-01-29
Reference information compiled from public material. Not investment advice; decisions and their consequences rest with the investor.
See research on other stocks →Today's read
Apple scores 29 out of 100 on today's InverseOne expectation ranking, 17 of 30 in the US large-cap universe. It sits in the bottom 74% of its one-year price range, a neglected zone. Today's move of +0.22% came with money flowing in, alongside the Tech & Internet sector. Scores are estimates built from price and volume, a starting point for research rather than a trading signal.
Data basis: 2026-08-28, For reference only, not advice
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