Revenue
$109.4B
est. $94.0B (yr ago)
EPS
$2.02 diluted
est. $1.57 (yr ago)
Free Cash Flow
$51.6B
est. Not disclosed (yr ago)
Gross Margin
50.1%
est. 46.5% (yr ago)
Operating Margin
32.6%
est. 30.0% (yr ago)
What changed
Revenue increased 16.4% year over year to $109.4 billion, led by double-digit growth in iPhone, Mac and Services and growth across every geographic segment. Gross margin reached 50.1%, but approximately 2 percentage points came from tariff refunds; diluted EPS rose 28.7% to $2.02, including a $0.11 refund benefit.
Impact on thesis
Initial base fair value is $312 per share and does not move because there was no prior coverage to revise. The quarter strengthens the operating case, but Apple’s $324.60 price already implies about 35.4 times annualized nine-month EPS, leaving the shares fairly valued.
Suyog Bhise · 10 Sept 2026
Revenue
$16.99B
est. $15.42B (yr ago)
EPS
$2.03
est. $0.52 (yr ago)
Free Cash Flow
$3.56B
est. Not disclosed (yr ago)
Gross Margin
71.0%
est. Not disclosed (yr ago)
Operating Margin
37.9%
est. 31.7% (yr ago)
What changed
Revenue increased 10.2% from Q2 FY2025, while EPS rose to $2.03 from $0.52. Operating margin expanded 6.2 percentage points to 37.9%, and the supplied XBRL values imply $3.56B of free cash flow. Gross margin was 71.0%, but the year-ago comparison was not disclosed in the supplied quarterly data.
Impact on thesis
There was no prior SageNoodle fair value to revise. We initiate fair value at $251.6 per share, effectively in line with the $253.70 market price, because the stronger quarter is balanced by a demanding 25 times normalized free-cash-flow assumption and substantial debt.
Suyog Bhise · 10 Sept 2026