Apple’s fiscal third-quarter iPhone revenue hit $54.25 billion, surging nearly 22% and beating Wall Street forecasts. Behind the headline number, independent shipment data reveals the company also delivered standout unit growth and higher average selling prices—proving the iPhone business is performing even better than the official figures suggest.

James Brumley for The Motley Fool:
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According to IDC, Apple was only one of two major names in the smartphone business to defy the overall 6.7% year-over-year decline in total smartphone shipments during the second calendar quarter of this year. The other one was Samsung, which experienced an 8.1% year-over-year increase in total unit shipments. Apple handily outpaced that growth rate, though, with its 15.3% year-over-year improvement in iPhone shipments, again as reported by IDC.

There are a couple of important takeaways for investors quietly buried in this data. The first is that, while the company itself didn’t report it, the relative changes in reported revenue and unit shipments indicate that Apple is asking — and getting — a higher average selling price (ASP) for its current slate of iPhones. And not for the first time.

This is the second quarter in a row that IDC reported Apple had defied a broad drop in demand for smartphones by achieving the industry’s highest year-over-year increase in unit shipments, which again was also outpaced by Apple’s reported iPhone revenue growth (of nearly 22% in the previously reported quarter).

Connect the dots. After a slow start, the demand for newer iPhones that the launch of Apple Intelligence was supposed to generate back in 2025 is finally taking hold.

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MacDailyNews Take: Al of this, just before Apple is set to unveil the next generation of its indomitable iPhone!

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The post Apple’s Q3 iPhone sales crush expectations — and even better than they seem appeared first on MacDailyNews.

Wall Street’s reaction to Apple’s fiscal third-quarter 2026 results, released Thursday, July 30th, mixed praise for robust demand with caution over near-term supply and cost pressures. The company posted record June-quarter revenue of $109.4 billion, up 16% year over year and ahead of consensus expectations around $108.9–$109 billion, with diluted EPS of $2.02 versus the roughly $1.89 Street estimate. iPhone and Mac delivered standout growth (iPhone revenue about $54.3 billion, up ~22%; Mac about $10.4 billion, up ~29%), while Services and Greater China came in softer than some forecasts. Gross margin reached 50.1%, aided by roughly 2 percentage points from tariff refunds (about $0.11 of the EPS beat).

AAPL stock sold off sharply after hours and into Friday premarket as investors focused on management’s fiscal Q4 (September-quarter) outlook: revenue growth of 9–11% year over year (implying a midpoint near $113 billion), below the prior consensus near $115 billion. Management cited significant supply constraints (driven by stronger-than-expected demand for iPhone and Mac rather than weak end demand), rising memory costs, limited channel inventory, and a roughly 2.5-percentage-point foreign-exchange headwind. Gross margins were guided lower into the mid-to-high 40s range before potential pricing actions on upcoming products. Tim Cook, delivering his final earnings call as CEO ahead of the planned September handover to hardware chief John Ternus, framed the constraints as temporary and demand-driven.

Analyst notes that followed reflected the split between solid fundamentals and near-term headwinds.

Bullish and constructive voices

Bank of America analyst Wamsi Mohan reaffirmed his Buy rating and maintained one of the Street’s highest price targets at $380. He highlighted several positives, including stronger-than-expected momentum in the iPhone 17 cycle and Mac, arguing that supply constraints—not fading demand—are the primary limiter on near-term growth. BofA remains constructive on the upcoming product cycle and longer-term AI/Siri monetization opportunities.

Wells Fargo raised its price target sharply to $350 from $310 while keeping an Overweight rating. The firm noted the weaker Q4 guide tied to component constraints and cost inflation but pointed investors toward Q1 2027 gross-margin recovery, iPhone 18 pricing strategy, and Services trends.

TD Cowen lifted its target to $400 from $350 and maintained a Buy rating. JPMorgan, Morgan Stanley, and Goldman Sachs trimmed targets modestly but retained positive (Overweight/Buy) ratings. JPMorgan moved its target to $340 from $345, viewing supply issues as largely deferring rather than destroying demand and citing continued strength in the iPhone 17 cycle and Mac. Morgan Stanley lowered its target slightly to $360 from $364 while staying Overweight.

More cautious or bearish takes

Barclays analyst Tim Long maintained a Sell/Underweight rating and cut the price target to $245 from $253, citing Services and Greater China revenue that fell short of his expectations along with the softer overall outlook.

GF Securities downgraded Apple to Hold from Buy, arguing that valuation appears full after the stock’s recent outperformance. Rosenblatt Securities raised its target to $300 from $276 but kept a Neutral rating.

Overall Street consensus remains a Moderate Buy, with a roughly even split of Buys/Overweights versus Holds and a small number of Sells/Underweights. Average price targets clustered in the low-to-mid $320s in the immediate aftermath—implying limited upside or modest downside from the pre-earnings close near $333—though individual targets still span a wide range from the mid-$200s to $400. Analysts broadly agree demand indicators look healthy and that higher iPhone pricing, resilient volumes, and potential AI-related Services upside (including via Siri and iCloud) remain longer-term catalysts. The near-term debate centers on how quickly supply, memory-cost, and FX pressures ease and whether valuation leaves room for further multiple expansion.

MacDailyNews Note: Apple shares closed Thursday at $333.43 before sliding over eight percent after the report. Investors will watch upcoming product launches, component availability updates, and any further analyst estimate revisions as the September quarter unfolds.

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The post Analysts split on Apple after strong Q3 beat overshadowed by soft Q4 guidance appeared first on MacDailyNews.

Apple today announced financial results for its fiscal 2026 third quarter ended June 27, 2026. The company posted quarterly revenue of $109.4 billion, up 16 percent year over year. Company gross margin was 50.1 percent, including a favorable impact of approximately 2 percentage points from tariff refunds. Diluted earnings per share was $2.02, up 29 percent year over year, and included a favorable impact of $0.11 from tariff refunds.

“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,” said Tim Cook, Apple’s CEO, in a statement. “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.”

“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, in a statement. “Our installed base of active devices also reached a new all-time high across all major product categories and geographic segments.”

Net sales by category:

• iPhone: $54.252 billion (vs. $44.582 billion YoY)
• Mac: $10.352 billion (vs. $8.046 billion YoY)
• iPad: $6.191 billion (vs. $6.581 billion YoY)
• Wearables, Home, and Accessories: $7.883 billion (vs. $7.404 billion YoY)
• Services: $30.739 billion (vs. $27.423 billion YoY)

Apple’s board of directors has declared a cash dividend of $0.27 per share of the Company’s common stock. The dividend is payable on August 13, 2026, to shareholders of record as of the close of business on August 10, 2026.

Apple will provide live streaming of its Q3 2026 financial results conference call beginning at 2:00 p.m. PT on July 30, 2026, at apple.com/investor/earnings-call. The webcast will be available for replay for approximately two weeks thereafter.

Wall Street was looking for solid double-digit growth. Consensus forecasts (drawn from roughly 27–31 analysts) called for:

• Revenue of approximately $108.9 billion, up about 16% from $94.0 billion a year earlier.
• Diluted EPS of $1.89, up roughly 20% from $1.57 in the year-ago quarter.

MacDailyNews Take: A strong quarter, but the bears will say that Services delivered $30.7 billion versus projections of $31.3 billion and Greater China revenue was $18.8 billion, short of analyst estimates of $19.5 billion.

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