Apple reported a record $109 billion [1] in revenue for its fiscal third quarter, marking the final earnings period under CEO Tim Cook.
The results highlight a tension between record-breaking sales and tightening margins. While the company is growing, rising operational costs are beginning to offset the gains from its hardware ecosystem.
Revenue for the three months ended June 27, 2026 [6], rose 16% [2] compared to the previous year. This growth was driven largely by record iPhone sales, contributing to a market capitalization that has reached $5 trillion [5].
Despite these milestones, Apple shares fell 2.3% [3] in after-hours trading. Investors reacted to the impact of higher memory-chip costs and the loss of tariff-refund credits, which pressured the company's bottom line.
This volatility comes as the company transitions leadership. Cook recently sold 511,000 shares worth approximately $88 million [4].
Analysts said that services revenue fell short of some forecasts, adding to the downward pressure on the stock. The combination of supply chain expenses and the absence of previous tax-related windfalls has created a cautious mood among shareholders, even as the company hits new revenue peaks.
“Apple reported a record $109 billion in revenue for its fiscal third quarter.”
The divergence between record revenue and a falling stock price suggests that investors are prioritizing margin stability over raw growth. As Apple enters a post-Cook era, the company must navigate a more expensive supply chain and a shifting regulatory environment regarding tariffs, meaning future growth may rely more on cost management than simply increasing unit sales.
