Apple’s $109.4 billion Q3 revenue and $2.02 EPS beat estimates, fueled by iPhone sales and Google’s Gemini AI integration at lower cost.
Apple’s market cap briefly reached $5 trillion ahead of its fiscal Q3 report, driven by a 16% year-over-year revenue rise to $109.4 billion and a 29% EPS increase to $2.02. iPhone revenue hit a June quarter record of $54.3 billion, up 22%, though shares fell 10% post-report on weaker-than-expected September guidance of 9%-11% growth.
The company’s AI strategy diverges from rivals, opting to license Google’s Gemini model for $1 billion annually instead of building its own infrastructure. Competitors like Alphabet, Microsoft, and Meta plan over $700 billion in combined 2026 AI capital spending, while Apple’s approach reduces upfront costs.
CEO Tim Cook will transition to executive chairman on September 1, with John Ternus taking over as CEO. Supply constraints were cited as a headwind for future growth.