AAPL · Q3 FY2026
Apple Inc. Q3 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $109.4B | $94.0B (yr ago) | Beat |
| EPS | $2.02 diluted | $1.57 (yr ago) | Beat |
| Free Cash Flow | $51.6B | Not disclosed (yr ago) | Miss |
| Gross Margin | 50.1% | 46.5% (yr ago) | Beat |
| Operating Margin | 32.6% | 30.0% (yr ago) | Beat |
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 the investment 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.