.png)
Despite Strong Overall Q3 Results Apple reported third-quarter fiscal 2026 revenue of $109.4 billion for the three months ended June 27, a 16% year-over-year increase, but its high-margin Services segment fell short of Wall Street expectations, triggering a more than 5% drop in the stock after hours.
Services revenue, which includes the App Store, Apple TV+, Apple Music, iCloud, Apple Pay and other offerings, rose 12% year over year to $30.74 billion. That figure came in below the consensus estimate of $31.36 billion, according to analysts.
The miss in the Services category—long viewed as Apple’s most profitable and resilient growth engine—overshadowed the broader beat on total sales. Investors reacted swiftly, sending shares of the company (ticker: AAPL) down more than 5% in extended trading.
The results cover Apple’s fiscal third quarter, which ended June 27. While overall revenue growth remained robust at 16%, the softer-than-expected Services performance raised questions about near-term momentum in the company’s subscription and digital content businesses amid ongoing competitive pressures and regulatory scrutiny in key markets.