Apple Q3 2026 revenue hits $109.42B amid CEO change

Apple reported revenue of $109.42 billion for Q3 2026, pointing to sharp iPhone growth and solid Mac results as the main drivers. The update also carried a major leadership milestone, as the earnings call was described as the final one under CEO Tim Cook.

Even with the top-line gain, Apple’s shares fell eight percent in after-hours trading. Management linked the market reaction to weaker-than-expected performance in the company’s services division, which fell short of expectations during the quarter.

iPhone and Mac strength, services disappointment Apple said iPhone sales rose 22 percent in Q3 2026, a jump the company highlighted as a key contributor to the quarter’s revenue. The Mac segment was also cited as a bright spot, with Apple describing performance there as strong.

By contrast, management said the services business did not meet expectations. While Apple did not provide a services revenue figure in this update, executives indicated that the shortfall mattered enough to weigh on investor sentiment despite the gains in hardware.

Cost pressures and supply limits flagged as risks

Management pointed to rising memory costs as a direct risk to future profitability. Executives also cited continuing supply chain constraints, framing them as an ongoing operational challenge rather than a one-off disruption.

Apple said these pressures have already led to product price increases. Company officials warned that further price adjustments could be needed if market conditions fail to stabilise, signalling that cost recovery remains on the table as Apple manages inputs and availability.

Tim Cook’s last earnings call and John Ternus succession The company said this earnings call marked the end of Tim Cook’s tenure as CEO. Apple reported that John Ternus will succeed Cook, and described the transition as proceeding according to plan.

Apple indicated that the incoming leadership is expected to take over investor communications beginning next quarter. The company did not outline additional changes alongside the succession, leaving the timetable as the main operational detail disclosed.