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Apple posts record June-quarter sales but warns supply constraints will slow growth

Apple posts record June-quarter sales but warns supply constraints will slow growth

Strong fiscal Q3 results were overshadowed by September-quarter guidance below Wall Street expectations as component shortages, rising memory costs and foreign-exchange pressure weigh on growth and margins.

Fact Check
Apple's official newsroom press release confirms record June-quarter (fiscal Q3 2026) revenue of $109.4B with iPhone, Mac, and Services setting June-quarter records. Reuters and The Globe and Mail independently confirm iPhone revenue rose 21.7% to $54.25B, Mac up 28.7%, revenue and EPS beating estimates, while services (+12.1%) missed analyst targets and Greater China came in below expectations, with shares falling ~4% after hours. Every element of the claim is corroborated by both the primary official source and independent reporting.
Summary

Apple reported record fiscal third-quarter revenue of $109.4 billion, up 16% from a year earlier, and earnings of $2.02 a share, both ahead of expectations, with iPhone revenue rising 22% to a June-quarter record $54.3 billion and Mac sales increasing 29% to about $10.4 billion. But the company said September-quarter revenue would grow 9% to 11%, implying about $111.7 billion to $113.7 billion, below Wall Street expectations of roughly $114.8 billion to $114.9 billion and about 12% growth. Management cited unfavorable foreign exchange, worsening component shortages across iPhone, Mac and iPad, and higher memory-chip costs pressuring margins. Tim Cook described the shortages as “very significant,” said Apple would be “scrambling on the supply side,” and also compared memory pricing to a “100-year flood,” attributing the strain in part to stronger-than-expected iPhone and Mac demand and competition for advanced chips and memory tied to AI data-center buildouts. Apple shares fell sharply, with reports citing declines from roughly 5% to nearly 10%, threatening about a $500 billion loss in market value.

Terms & Concepts
  • Foreign exchange: The effect that currency movements have on a company’s reported sales and earnings.
  • Gross margins: Profit after direct product costs, before other expenses.
  • Semiconductor nodes: Manufacturing process generations for chips, with advanced nodes typically in highest demand for cutting-edge devices and AI hardware.