Apple Posts Record June Quarter Under Tim Cook’s Last Earnings Report, But Shares Fall 6%

Apple reported its strongest-ever June quarter, with revenue rising 16% year-on-year to $109.4 billion, driven by record sales from the iPhone, Mac and Services businesses.

However, investor sentiment weakened after the company projected slower-than-expected revenue growth for the current quarter amid ongoing component shortages, sending its shares down about 6% in extended trading.

The company said revenue reached $109.41 billion in the quarter ended June 27, 2026, while net income increased to $29.78 billion, or $2.02 per diluted share, from $23.43 billion, or $1.57 per share, a year earlier.

According to Apple's official earnings release, gross margin stood at $54.77 billion. The total operating expenses reached $19.07 billion.

"Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment," said Tim Cook, Apple’s CEO.

"At WWDC26, we were thrilled to introduce the all-new Siri AI, alongside all of Apple’s latest software innovations and important new child safety features," he added.

Chief Financial Officer Kevan Parekh said that Apple's installed base of active devices also reached a new all-time high across all major product categories and geographic segments.

The earnings announcement marked Tim Cook's final quarterly results as Apple's chief executive before hardware chief John Ternus takes over leadership on September 1.

Ternus will inherit the company's push into artificial intelligence (AI), alongside upcoming products including a foldable iPhone, smart glasses and other wearable devices.

Guidance Disappoints Despite Earnings Beat

Apple expects revenue to grow 9% to 11% in the fiscal fourth quarter, below analysts' expectations of more than 12%, as supply constraints continue to affect production.

The company also warned that services growth would slow in the September quarter and flagged regulatory changes affecting its App Store business in the European Union, as per a report by Bloomberg (BBG).

Earlier, CEO Cook had described the rising memory costs as a "100-year flood", adding that shortages of processors and memory chips would affect Macs, iPhones and iPads during the current quarter. Currency fluctuations are also expected to weigh on growth.

Performance Of iPhone, Mac And Other Products

Apple's official results showed iPhone revenue climbed to $54.25 billion from $44.58 billion a year earlier, while Mac revenue rose to $10.35 billion.

Services revenue reached $30.73 billion, iPad revenue stood at $6.19 billion, and Wearables, Home and Accessories generated $7.88 billion.

The iPhone and Mac revenue exceeded analyst expectations, while iPad and Services missed estimates.