CEO Tim Cook cites unprecedented memory price increases as Apple adjusts pricing amid supply constraints for iPhones and Macs.
Apple reported Q3 2026 earnings per share of $2.02, beating the $1.89 estimate, while revenue reached $109.4 billion against a $108.8 billion forecast. iPhone revenue hit $54.2 billion, surpassing the $53.5 billion projection. Despite the beat, CEO Tim Cook warned of a “100-year flood” in memory costs, prompting price increases on Macs and iPads.
Memory costs dominated the earnings call, with Cook noting exponential increases in pricing. CFO Kevan Parekh added that rising memory expenses offset gross margin gains, contributing to a sequential decline in adjusted gross margins. Supply constraints are expected to impact iPhone, Mac, and iPad sales in September.
The company confirmed leadership changes, with John Ternus taking over as CEO on September 1, while Cook transitions to executive chairman. The warning on memory costs overshadowed otherwise strong financial results.