AAPL US S&P 500NASDAQ-100DJIARussell 1000 Earnings call · transcribed from the recording
Apple Inc. (AAPL) · Q3 2026 results and valuation
Share price: $355.63 · 2026-11-11
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, while also providing various services such as digital content, cloud services, and payment systems. The company serves consumer, small and mid-sized business, education, enterprise, and government customers across global markets including the Americas, Europe, Greater China, Japan, and the rest of Asia Pacific. Source: 10-K annual report (2025-10-31)
Results Q3 2026 vs Q2 2026 · previous quarter · fiscal Q4 2026 · published 2 Nov 2026 and 30 Jul 2026
Net income up 3.1% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+3.1%
Net income vs Q2 2026
Outlook given
Net income 30.71B vs 29.79B
Revenue +4.6%
2 · How management spoke
Typical
More upbeat than 59% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Guidance
Apple expects its December quarter total company revenue to grow between 7% and 10% year over year, which reflects its best view of constrained…
Valuation
Is Apple Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-27), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 1.8% growth a year (3-year revenue growth), the model's fair value is $86.50 a share — the stock trades 311% above it. Today's price assumes 20.9% growth a year.
Current price
$355.63
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+20.9% for 10 yrs
Fair value / share
$86.50
Buy below
$64.87
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Management expects
Revenue +7% · from the Q3 2026 report: “We expect our December quarter total company revenue to grow between 7% and 10% year over year, which reflects our best view of constrained supply.”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
Services achieved an all-time record during the quarter to close out Apple's best year ever there too.
Source quote
“Services achieved an all-time record during the quarter to close out our best year ever there too. In addition to September quarter and fiscal year records in total company revenue, iPhone set a September quarter revenue record, capping its best fiscal year ever. We grew in the vast majority of markets we track, setting September quarter records in the Americas, Europe, Greater China, and the rest of...”
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Guidance
Apple expects gross margin to be between 45% and 46%.
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Figure
Apple is pleased to report $114.5 billion in revenue, up 12% from a year ago and a September quarter...
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Fading
Apple's installed base of over two and a half billion active devices has reached another all-time high across all major product categories…
Source quote
“Our installed base of over two and a half billion active devices has reached another all-time high across all major product categories... Products revenue was $78.7 billion, up 18% year-over-year, driven by double-digit growth on iPhone and Mac, both of which set new June quarter records. Services revenue was $30.7 billion, up 12% year-over-year.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Emerging markets continued to see strong performance on Mac, resulting in Mac's best fiscal year there, driven by record upgraders and customers new to the Mac.”
“Services achieved an all-time record during the quarter to close out our best year ever there too.”
“The iPhone active install base grew to an all-time high, and iPhone had a record year for upgraders globally and in several markets, including the U.S., China mainland, India, and...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-26)
| Metric | Q3 2026period end 2026-09-26 | Q2 2026period end 2026-06-27 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 114.48B | 109.42B | +4.6% | 102.47B | +11.7% |
| Gross profit | 54.82B | 54.77B | +0.1% | 48.34B | +13.4% |
| Operating income | 35.63B | 35.70B | −0.2% | 32.43B | +9.9% |
| Net income | 30.71B | 29.79B | +3.1% | 27.47B | +11.8% |
| EPS | 2.10 | 2.02 | +4.0% | 1.84 | +14.1% |
| P/E today 38.1 | 38.0 | 32.5 | +5.5 | 34.2 | +3.8 |
Topics
Most discussed now
- Services gross margin was 76%, up 40 basis points sequentially.
- Apple feels really good about the long-term opportunity
- Apple is feeling really good about where it is headed in the long term.
- Apple is pushing really hard on that with Siri AI, but it is also really encouraged the fact that Apple devices, it...
- It's primarily request based today, but as Apple talked about at WWDC, it's built on a modern orchestrated driven architecture...
Faded since Q2 2026
- Fading Apple looks at its gross margin change from the 49.3% it had at the total company level for the March...
- Dropped Apple continues to see enormous customer enthusiasm for its most popular lineup ever, with iPhone revenue growing 22% from a...
- Fading Keep in mind, Apple also made some changes to the App Store business model in certain countries.
- Fading While FX was a factor, really the main driver was really the memory cost impact.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Apple reported quarterly revenue of $109.4 billion, up 16 percent year over year, and diluted earnings per share of $2.02, up 29 percent year over year.
- Results of operations · SEC 8-K
Apple reported quarterly revenue of $111.2 billion, up 17 percent year over year, and diluted earnings per share of $2.01, up 22 percent year over year.
- Director or officer change · SEC 8-K
Apple Inc. announced that Tim Cook will become Executive Chair and John Ternus will be appointed as Chief Executive Officer, both effective September 1, 2026.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Apple reported quarterly revenue of $143.8 billion, up 16 percent year over year, and diluted earnings per share of $2.84, up 19 percent year over year.
- Director or officer change · SEC 8-K
Apple Inc. appointed Ben Borders as Principal Accounting Officer effective January 1, 2026, succeeding Chris Kondo in the role.
- Director or officer change · SEC 8-K
Jennifer Newstead will become Apple's general counsel on March 1, 2026, succeeding Kate Adams, who has held the position since 2017.