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AAPL
FY2026 Q3
Softening
Apple Inc. earnings call
Buzzberg read
iPhone revenue up 22% to $54.3B
Apple reported strong June quarter results with iPhone revenue up 22%, but guided for a sharp deceleration to 9-11% growth in September due to significant supply constraints on advanced SOC nodes and FX headwinds. Gross margins are pressured by a '100-year flood' in memory pricing, leading to price increases on iPad and Mac. Enterprise adoption continues with wins at Morgan Stanley, Disney, and Credit Agricole, and education displacement of Windows/Chromebooks is accelerating. Services growth slowed to 12% with further deceleration expected. iPhone revenue $54.3B (+22% YoY) driven by iPhone 17 family, with double-digit growth in most markets.
Buzzberg read iPhone revenue up 22% to $54.3B Apple reported strong June quarter results with iPhone revenue up 22%, but guided for a sharp deceleration to 9-11% growth in September due to significant supply constraints on advanced SOC nodes and FX headwinds. Gross margins are pressured by a '100-year flood' in memory pricing, leading to price increases on iPad and Mac. Enterprise adoption continues with wins at Morgan Stanley, Disney, and Credit Agricole, and education displacement of Windows/Chromebooks is accelerating. Services growth slowed to 12% with further deceleration expected. iPhone revenue $54.3B (+22% YoY) driven by iPhone 17 family, with double-digit growth in most markets. Read full analysisCollapse analysis
Apple reported strong June quarter results with iPhone revenue up 22%, but guided for a sharp deceleration to 9-11% growth in September due to significant supply constraints on advanced SOC nodes and FX headwinds. Gross margins are pressured by a '100-year flood' in memory pricing, leading to price increases on iPad and Mac. Enterprise adoption continues with wins at Morgan Stanley, Disney, and Credit Agricole, and education displacement of Windows/Chromebooks is accelerating. Services growth slowed to 12% with further deceleration expected. iPhone revenue $54.3B (+22% YoY) driven by iPhone 17 family, with double-digit growth in most markets.
- September quarter revenue guided to 9-11% YoY growth, below consensus, due to supply constraints on advanced SOC nodes and FX headwinds.
- Gross margin guided to 47-48% (vs 48.1% reported), with memory cost inflation as the primary driver.
- Apple raised prices on iPad and Mac due to exponential memory price increases; expects memory costs to continue rising beyond September.
IPAD Revenue$6.2BReported
IPHONE Revenue$54.3BReported
SERVICES Revenue$30.7BReported
Revenue$109.417B-2% QoQ
6 grounded callouts
What matters now
The highest-signal changes from the call.
Guidance
September quarter revenue guided 9-11% growth
Supply chain
Supply constraints to increase significantly in September
Show 3 more callouts
Margins
Memory costs driving price increases and margin impact
AI
Siri AI receives overwhelmingly positive feedback
AI
On-device AI advantages driving enterprise adoption
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| IPAD Revenue | $6.2B | Reported |
| IPHONE Revenue | $54.3B | Reported |
| SERVICES Revenue | $30.7B | Reported |
| Revenue | $109.417B | -2% QoQ |
| WEARABLES Revenue | $7.9B | Reported |
| EPS | $2.02 | +0% QoQ |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Gross margin | FY2026 Q4 | 47%–48% | 47.5% | Guided |
| Revenue | FY2026 Q4 | 9%–11% | 10% | Guided |
AI, capex & demand read
Management read
confident
Management struck a confident tone, driven by strong iPhone demand, record services revenue, and optimism about Siri AI, despite acknowledging supply constraints and memory cost headwinds; Tim Cook expressed never being more optimistic.
Management AI read
Management expressed strong enthusiasm for Siri AI, highlighting overwhelmingly positive feedback from developers and public beta, and noted that on-device AI advantages are driving enterprise adoption. They see enormous opportunities in AI and plan to monetize through iCloud Plus upgrades for heavy users.
all 7 named companies below
Companiesreturns since call
Customers
Customers
Kevin
Morgan Stanley is a large enterprise customer adopting Apple devices, signaling enterprise momentum for iPhone.
Evidence
“Morgan Stanley has deployed over 20,000 iPhone 17 devices globally as part of a shift from employee-owned to corporate-owned devices for reliability and security.”
Customers
Kevin
Disney is using Apple Macs for on-device AI, reducing cloud costs and indicating competitive advantage for Apple in creative workflows.
Evidence
“At Disney, creative teams are increasingly turning to Mac for on-device AI workflows that reduce overall cloud token costs and keep their IP secure.”
Customers
Kevin
Credit Agricole is deploying Mac for on-device AI in banking, showcasing productivity gains and enterprise adoption outside the US.
Evidence
“Credit Agricole, France's leading retail bank, is using on-device AI and MacBook Pro to streamline regulatory workflows, reducing manual processing time by over 80%.”
Supply chain
Supply chain
Tim Cook
Apple is raising prices on iPad and Mac due to a '100-year flood' in memory pricing, and expects further memory cost increases beyond September. — Memory inflation is a major headwind for Apple's gross margins, but a tailwind for memory suppliers like Micron, suggesting pricing power for those suppliers.
Evidence
“We reluctantly raised prices because we're in what I would characterize as a 100-year flood on memory pricing, with exponential increases in memory prices.”
Supply chain
Tim Cook
Apple's supply constraints on advanced SOC nodes are driven by demand exceeding expectations for iPhone and Mac, with limited supply chain flexibility. — Strong iPhone/Mac demand is straining TSMC's advanced node capacity, likely benefiting TSMC but could limit Apple's ability to meet demand.
Evidence
“The primary issue is advanced nodes that we run our SOCs on. That's the primary supply constraint now, and the root cause is a demand forecast issue.”
Supply chain
Kevin
Approximately half of MacBook Neo large purchases by US education institutions in the quarter displaced Windows and Chromebook devices. — Apple is gaining share in education from Microsoft and Google, threatening their installed base in a key market.
Evidence
“In the last quarter, about half of the MacBook Neo large purchases by US education institutions displaced Windows and Chromebook devices.”
External signals
Supply-chain alpha · 3returns since call
Apple is raising prices on iPad and Mac due to a '100-year flood' in memory pricing, and expects further memory cost increases beyond September.
Apple's supply constraints on advanced SOC nodes are driven by demand exceeding expectations for iPhone and Mac, with limited supply chain flexibility.
Approximately half of MacBook Neo large purchases by US education institutions in the quarter displaced Windows and Chromebook devices.
Methodology & coverage
Management-only analysis. All 7 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.