Tim Cook Takes a Bow as Apple Reports Record $109B Q3 Earnings
Tim Cook at Apple Event [John Gress Media Inc / Shutterstock]
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Apple has just held its final earnings call of the Tim Cook era, and to no one’s surprise, Apple’s fifteen-year CEO is going out on a record high. In fact, as one analyst pointed out on the call, Apple just reported more revenue in a single quarter than it did in the entire fiscal year after Cook took the helm in 2011.
Today marked Tim Cook’s 90th earnings call in the CEO’s chair, making a nice round number as he prepares to hand the reins over to John Ternus on September 1. He once again expressed great confidence in Ternus, and received many well-wishes from those on the call.
“Today, 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,” Cook said, in what will now be his latest earnings call quip, bringing it home by adding, “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.”
There’s a certain poetic symmetry to Cook leaving the CEO’s office on the eve of Siri’s evolution, tying Cook’s tenure to that of “Siri 1.0.” Apple unveiled its voice assistant alongside the iPhone 4S on October 4, 2011 — the first Apple event after Cook took over as CEO, held the day before Steve Jobs succumbed to cancer. Although Siri was unmistakably one of Jobs’ pet projects, it was Cook who had to shepherd it for 15 years, and even though it stagnated for far longer than it should have, it’s finally been redeemed in iOS 27, and now it will be up to the Apple of John Ternus to carry it to the next generation.
The Numbers
However, leaving the nostalgia aside, Apple delivered its usual stellar financial results today, with quarterly revenue of $109.4 billion, up 16.4% over the year-ago quarter, and growth in every category except iPad. What’s even more interesting is that Apple’s Q3 year-over-year growth has nearly doubled every year since Q3 2022, when it gained 1.9%. It was actually down 1.4% in Q3 2023, but rebounded to 4.9% growth in Q3 2024, and then 9.6% in Q3 2025.
It’s also telling that this is the first quarter that Apple’s early 2026 product lineup has been fully on sale. While March saw the release of the iPhone 17e, M4 iPad Air, M5 Pro and Max MacBook Pro, M5 MacBook Air, two new Studio Displays, and the MacBook Neo, most of these products were only on sale for two weeks of that prior quarter. By all reports, the MacBook Neo was selling like hotcakes, which gave Apple some healthy Mac numbers in Q2 2026, but this latest quarter shows how much of a massive difference those releases have really made.
| Segment | Q3 2026 Revenue | Growth (YoY) |
|---|---|---|
| iPhone | $54.25B | +21.7% |
| Mac | $10.35B | +28.7% |
| iPad | $6.19B | -5.9% |
| Wearables | $7.88B | +6.5% |
| Services | $30.74B | +12.1% |
While iPhone sales crept up to account for half of Apple’s overall quarterly revenue, the distribution between categories remains evenly balanced. For the most part, as the overall size of the pie grew, all five pieces grew proportionally with it.
“We are very pleased with our record business performance during the quarter, which set new June quarter records for both EPS and operating cash flow,” said Kevan Parekh, Apple’s CFO. “Our installed base of active devices also reached a new all-time high across all major product categories and geographic segments.”
There aren’t any real surprises here in terms of what drove the growth. Cook echoed comments about the overwhelming popularity of Apple’s iPhone lineup, attributing the continued growth not only to the new iPhone 17e, but the fact that lots of folks are still buying the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and even the iPhone Air. “We just had significant momentum on the iPhone really since the launch,” Cook told CNBC.
The stellar increases on the Mac side were similarly driven by the MacBook Neo and M5 MacBook Air, but Cook touched on the fact that demand for the Mac mini and Mac Studio remains off the charts, to the point where Apple could have posted significantly higher revenue if it could just make them fast enough to keep up.
It’s also notable that these record numbers come from mostly before Apple’s price hikes, which were announced on June 25, 2026, less than a week before the end of the third quarter. So, it will be interesting to see what Apple’s fourth quarter looks like when John Ternus sits down for his first earnings call in October as Apple’s new CEO. Higher prices will undoubtedly soften demand, but Apple could still be looking at even greater gains.
However, there’s also a bit of nuance hidden in today’s earnings reports. Apple reported somewhere between $2 billion and $3 billion in tariff refunds. It has promised to reinvest that money in US-based manufacturing and R&D, which should keep the Trump administration happy, but that’s likely just a matter of where it sits on the balance sheet, as Apple has already committed hundreds of billions of dollars into the US economy — and it’s booked $11.4 billion in R&D, most of which stays in the US.
Passing the Torch
At the end of the prepared section of the earnings call, Cook took a beat to share some parting words and formally pass the mantle to John Ternus.
Before we get into questions, I just wanted to take a moment to say thank you to all of you from our shareholders, particularly our long-term shareholders, who have put their trust in us for so many years, to the analysts who have followed our company so closely.
As you know, this will be my final earnings call, and John will lead these calls going forward. The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era.
He is truly one of a kind, and there is no better person to take the helm of the company. As I said, I couldn’t be more confident in his leadership, in our executive team, and in the extraordinary people at Apple, who are determined to enrich the lives of our users all over the world.
We have a bright future ahead, and I truly have never been more optimistic. So thank you all, and now Kevan and I will be happy to take your questions.
Although it’s long been the norm at Apple, there’s no strict requirement for a CEO to participate in earnings calls, but Cook’s comments make it clear the tradition will continue. While Ternus officially takes over in September, the next earnings call won’t be held until the end of October, giving Ternus some time to settle into his new office before he has to face investors.
