Apple Q3 2026 earnings preview: what to expect from iPhone 17 and AI

When will Apple report its latest earnings?

Apple is scheduled to report third quarter (Q3) 2026 earnings on Friday, 31 July 2026 at 6.30am AEST, after the market closes.

Highlights from the previous quarter

Apple's second quarter (Q2) 2026 earnings, released on 30 April, delivered a solid beat at both the top and bottom lines. The company reported its best-ever March quarter, with strong demand for the iPhone 17 lineup helping drive broad-based growth.

• Earnings per share (EPS): $2.01 diluted vs. $1.94 expected
• Revenue: $111.2 billion vs. $109.7 billion expected

Digging deeper into the Q2 2026 earnings report:

• iPhone revenue rose 22% to $57 billion (new March quarter record), comfortably beating expectations
• Services revenue hit a new all-time high of $31 billion, +16% year-on-year (YoY)
• Mac revenue increased 6% to $8.4 billion
• iPad revenue grew 8% to $6.9 billion
• Wearables, Home & Accessories rose 5% to $7.9 billion
• Gross margin came in at 49.3%, ahead of expectations.

Geographically, Greater China was a standout, growing 28% YoY. On the earnings call, chief executive officer (CEO) Tim Cook highlighted 'extraordinary demand' for the iPhone 17 series and noted the installed base of active devices reached a new all-time high across every major category.

The stock reacted positively to the results and guidance, finishing 3.24% higher the next session at $280.14.

Summary of Apple Q2 net sales by category

Q3 2026 earning expectations

In its Q2 earnings call, Apple guided for revenue growth of 14% to 17% YoY for the June quarter. This implies revenue in the range of approximately $107 billion – $110 billion (compared to $94.0 billion in Q3 2025).

Gross margin is expected to come in around 48%. No specific EPS guidance was provided, but the company noted ongoing supply constraints, particularly for certain Mac models.

Key financials – summary

Wall Street's expectations for the upcoming results are as follows:

• Revenue: ~$108.578 billion (vs. $111.2 billion in the previous quarter)
• EPS: ~$1.89 diluted (vs. $2.01 in the previous quarter)

Key areas of focus in the upcoming earnings release

iPhone performance

Expected to remain the biggest driver, with analysts looking for continued strength in the iPhone 17 series. Revenue is projected around $55 billion – $57 billion, supported by solid upgrade demand and a strong installed base, though supply constraints and higher component costs could be a factor. Apple recently announced price increases across multiple products (including some iPhone models), which could help offset higher component costs but may also test demand sensitivity.

Services growth

Forecast to deliver another record quarter, with revenue expected in the $31 billion – $32 billion range (mid-to-high teens growth). Investors will watch for continued momentum in App Store, Apple Music, iCloud, and Apple Intelligence-related subscriptions.

Mac & iPad

Mac sales are likely to face ongoing supply constraints (especially for newer models like MacBook Neo), while iPad should benefit from recent refreshes. Combined, these categories are expected to show modest growth.

Wearables, Home & Accessories

Anticipated to be relatively stable, with the Apple Watch and AirPods cycles in focus.

Artificial intelligence (AI) and Apple Intelligence

Any updates on rollout progress, user adoption, and monetisation potential will be closely watched, as this is seen as a key long-term growth driver.

Greater China

Performance in the region remains important after recent stabilisation. Huawei competition and any tariff-related impacts will be in focus.

Guidance and Q4 outlook

Apple's forward commentary (even if unofficial) on the holiday quarter, AI-driven upgrade cycles, and margin trends will set the tone for the second half of the year. Of particular interest will be any early comments on the new 'Upgrade' device leasing programme, which Apple is launching to spur sales and encourage more frequent upgrades.

Additional watch points:

• Tariff and supply chain: clarity on the impact of higher memory/component costs and progress on diversifying production (India for iPhone, Vietnam for other products).
• Gross margin: how the company is managing cost pressures while maintaining healthy margins.
• Price increases: Apple announced price hikes across several product lines at the end of June (including some iPhone models), driven by rising memory and component costs amid the global chip shortage. Investors will want to know how these increases are affecting demand.
• CEO transition: any subtle signals around the upcoming leadership change to John Ternus.

Is Apple a buy or a sell?

Apple has a TipRanks Smart Score of '9 outperform' and is rated as a 'buy' by analysts with 16 'buys', 9 'holds' and 2 'sell' recommendations – as of 22 July 2026.

Apple TipRanks chart

Apple technical analysis

Apple's share price has surged around 20.55% this year, making it the best-performing member of the 'Mag 7' ahead of NVIDIA and Alphabet. A good chunk of that outperformance has come since the company raised prices in late June, pushing the stock to a fresh record high of $334.99.

Some bearish divergence is visible on the relative strength index (RSI) at that high, which suggests the momentum behind the move is starting to fade. This isn't a sell signal – it's more a warning that the rally from the June low of $273.75 is becoming stretched or the stock is waiting for a fresh catalyst.

On the downside, initial support sits at $315 (from the early June high of $317.40). Below that, the $300 – $302 zone (mid-June highs) is the next level to watch. A more important medium-term support area lies around $275, where the 200-day moving average (MA) sits. These are the zones where buyers would likely step in on any earnings-related dip.

On the upside, initial resistance is the all-time high at $334.99. A break above that would clear the way for a move toward the psychological $350 level.

Apple daily candlestick chart

• _{Source: TradingView. The figures stated are as of 22 July 2026. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}