Key Highlights

● Fiscal third-quarter Revenue was $109.4 billion, up 16%, with diluted EPS of $2.02.

● Gross Margin was 50.1%, including about two points from Tariff refunds.

● iPhone, Mac and Services each set June-quarter revenue records.

● Apple Intelligence is reported to launch in mainland China in December.

China and AI headlines

Apple Inc. (NASDAQ:AAPL) has been in the news around its artificial intelligence plans for China. It was reported on 15 October that Apple Intelligence had been approved in China, with chief executive Tim Cook saying a test version is due later in October. A separate report on 14 October said Apple plans to launch its AI platform in mainland China in December as part of an iOS 27.3 update.

It was also reported on 15 October that Meta (NASDAQ:META) and Apple are working together so that developers can run Meta's open-weight model, Muse Spark Open, on high-end Mac computers. Apple is also contesting a $5.7 billion damages ruling in a Patent case brought by Taction. Neither item has been quantified in Apple's financial statements, and the outcome of the legal matter is unknown.

The latest reported quarter

The most recent results are for the fiscal third quarter, ended 27 June 2026 and announced on 30 July. Revenue was $109.4 billion, up 16% year on year, and Diluted Earnings per Share were $2.02, up 29%. Net Income was broadly flat sequentially, at $29.8 billion against $29.6 billion. The preceding quarter, ended 28 March, produced revenue of $111.2 billion and earnings per share of $2.01.

Apple said gross margin was 50.1%, including a favourable effect of about two percentage points from tariff refunds, and that earnings per share included a benefit of $0.11 from the same source. Part of the margin and profit improvement is therefore potentially non-recurring. The company said iPhone, Mac and Services each set June-quarter revenue records, with double-digit growth in each product category and in every geographic segment.

Mr Cook described it as Apple's strongest June quarter ever. The release also declared a quarterly Dividend of $0.27 per share, payable on 13 August 2026.

Index standing

Apple is a constituent of the S&P 500, a member since 30 November 1982, and it is also a component of the Nasdaq-100. As one of the largest companies by capitalisation, Apple is a very large weight in cap-weighted benchmarks, which means its moves can influence index-level performance in a way smaller constituents cannot.

China launch dates and tariff-refund margins

The late-October China test of Apple Intelligence, the planned December launch in mainland China, and any further development in the Taction case are the dated items on the horizon. The tariff-refund contribution to margins will matter when the next quarter's gross margin is compared with the 50.1% reported in the June quarter. Apple's own commentary on Demand will arrive with that report.