Apple's Q3 Earnings Beat but Weak Forecast and Supply Chain Woes Hit Stock
Apple reported strong fiscal Q3 2026 earnings, with revenue up 16.4% to $109.42 billion and record iPhone sales of $54.25 billion, beating expectations. However, its Q4 revenue forecast of 9-11% growth missed Wall Street's 12% target, citing severe supply constraints on advanced chips and rising memory costs. Services revenue and Greater China sales also fell short. CEO Tim Cook flagged ongoing supply chain struggles, including memory shortages driven by AI infrastructure demand. Shares fell 5-7% in after-hours trading. The quarter marks Cook's last before handing over to John Ternus.
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Apple Stock Drops on Supply Shortage Warning and Soaring Component Costs
Apple (NASDAQ: AAPL) shares fell on Friday after the company warned of supply shortages and rising component costs that are delaying sales and squeezing profit margins. Despite reporting strong fiscal Q3 2026 results—revenue up 16% year over year to $109 billion, iPhone sales up 22% to $54 billion, and earnings per share of $2.02 beating estimates of $1.94—investors focused on a weaker-than-expected sales outlook. Management guided for 9% to 11% revenue growth in the next quarter, below Wall Street's 12% forecast. CFO Kevan Parekh warned that supply shortages would likely worsen, impacting iPhone, Mac, and iPad sales. CEO Tim Cook attributed the shortages to higher-than-expected demand for iPhones and Macs, calling it a demand forecast issue rather than a regular supply problem. The article also includes promotional content for Motley Fool's stock recommendations.
Apple stock drops 7% as chip squeeze clouds record quarter
Apple Inc. shares fell 7.4% on July 31, 2026, their steepest post-earnings decline in over a decade, after the company issued a weaker-than-expected September-quarter revenue forecast due to worsening processor shortages and rising memory costs. Despite reporting a record fiscal third-quarter revenue of US$109.42 billion (up 16% YoY) and earnings of US$2.02 per share (up 29%), investors focused on supply-chain warnings. iPhone and Mac sales exceeded expectations, but Services revenue of US$30.74 billion and iPad sales of US$6.19 billion missed consensus estimates. Greater China revenue rose 22% to US$18.82 billion but also fell short of forecasts. Tariff refunds contributed about two percentage points to the gross margin of 50.1%. CEO Tim Cook said Apple had 'reluctantly' raised some prices due to a '100-year flood on memory pricing.' The sell-off erased approximately US$359 billion from Apple's market capitalization.
Apple Stock Falls on Weak Revenue Forecast as CEO Tim Cook Flags 'Increasing Impact' from Memory Shortage
Apple's stock dropped 7% on Friday after the company reported third-quarter earnings that beat analyst expectations on strong iPhone sales, but fell short on Services and Greater China revenue. The company posted $109.4 billion in revenue, up 16% year-over-year, with iPhone revenue growing 22% to a June quarter record. However, Apple's fourth-quarter revenue forecast of 9% to 11% growth missed the consensus estimate of 12.1%. CEO Tim Cook highlighted rising memory and storage costs driven by the global AI infrastructure build-out, noting that Apple has paid more for memory in each of the past three quarters and expects further increases. This has led Apple to raise prices on Macs and iPads, with potential iPhone price hikes expected in September. The stock pulled back from near-record highs after outperforming Magnificent Seven peers.
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Apple revenue forecast misses Wall Street targets amid supply chain struggles
Apple reported fiscal third-quarter results that beat analyst expectations, with iPhone sales rising 21.7% to $54.25 billion and total revenue up 16.4% to $109.42 billion. However, the company's forecast for the current quarter fell short of Wall Street targets, projecting revenue growth of 9-11% versus the 12% expected. CEO Tim Cook cited significant supply constraints, particularly in advanced chipmaking technology used for Apple silicon chips, and noted limited flexibility in the supply chain. The company is evaluating alternative suppliers. Apple's shares dropped 6% in after-hours trading. Services revenue also missed targets. The supply chain is strained by heavy spending on AI data centers, leading to tensions with supplier Micron. Profits were $2.02 per share, above estimates of $1.89, partly due to U.S. tariff refunds.
Apple Q3 2026 Earnings Beat Estimates but Services Revenue Misses
Apple reported its strongest June quarter on record for Q3 2026, with revenue of $109.4 billion (up 16% YoY) and diluted EPS of $2.02 (up 29% YoY), beating top-line estimates. However, services revenue of $30.74 billion fell short of analyst expectations of $31.22 billion, causing the stock to drop 3-4% in extended trading. iPhone revenue of $54.25 billion exceeded estimates, and Mac revenue of $10.35 billion also topped projections, but iPad revenue of $6.19 billion missed. Sales in Greater China disappointed at $18.8 billion versus the $19.6 billion forecast. Gross margin was 50.1%, boosted by tariff refunds. The quarter marks CEO Tim Cook's last before handing over to hardware chief John Ternus on September 1. Apple is also grappling with a global scarcity of memory chips and processors, leading to price increases and delivery delays on Macs and iPads.
Apple's Final Tim Cook Quarter Ends Strong with Record Revenue
Apple reported strong quarterly earnings for the June quarter, exceeding Wall Street expectations with per-share earnings of $2.02 on revenue of $109.4 billion, a 16% year-over-year increase. This marks the final quarter under CEO Tim Cook, who will be succeeded by John Ternus on September 1. Sales rose across all product lines except iPad, with June quarter records set for iPhone ($54.25B), Mac ($10.35B), and Services ($30.74B). Revenue grew in every geographic region, including Greater China ($18.8B). Cook noted the company achieved this despite supply constraints and foreign exchange headwinds. Apple expects current quarter revenue to rise 9-11% year-over-year despite ongoing supply constraints and rising memory costs. Apple shares fell about 4% in after-hours trading following the earnings release.
Apple disappoints with forecast dogged by supply chain struggles
Apple forecast sales growth of 9% to 11% for the September quarter, below Wall Street's 12% target, citing severe supply constraints on advanced chipmaking technology. CEO Tim Cook said the company is evaluating alternative suppliers for memory chips. Despite the weak forecast, Apple's fiscal third-quarter results beat expectations, with revenue rising 16.4% to $109.42 billion and iPhone sales hitting a record for the quarter at $54.25 billion. Mac sales surged 28.7% to $10.35 billion, while iPad sales fell 5.9%. Greater China revenue grew 22.4% but missed analyst estimates. Shares fell 5.5% in after-hours trade. The company also benefited from U.S. tariff refunds that boosted gross margins.