Author:律动BlockBeats
The sixth month of the year for the world's most valuable tech company, Apple, saw revenue surpass $100 billion for the first time.
On July 30, Apple disclosed its latest fiscal quarter, reporting revenue of $109.4 billion for the first time, which the company called its strongest June quarter ever. According to the company’s press release, iPhone, Mac, and services all set records for the period.
What truly deserves to be unpacked are two curves moving at different speeds. Revenue increased year-over-year by 16.4%, while EPS grew by 28.7%. The former reflects that Apple sold more products, while the latter also includes a tariff refund. According to Apple’s earnings press release issued the same day, this refund was separately disclosed in the explanations for gross margin and earnings per share.
How was the trillion-dollar threshold crossed?
The last blue bar in the chart is visibly separated from the previous four June quarters. Apple did not reach this point along a straight upward trajectory. Revenue during the same period of FY2023 even saw a slight decline before accelerating year over year. According to Apple’s consolidated quarterly financial statements, this quarter’s growth rate was the fastest among these five comparable periods.
According to Apple's FY2026 Q3 financial report, the significance of $109.4 billion lies not in crossing a round numerical threshold, but in elevating Apple’s quarter most often labeled as a "product lull" to a scale approaching that of a traditional peak season. This scale itself has reshaped people’s intuitive understanding of where the June quarter stands within Apple’s fiscal year.
Revenue growth wasn't limited to just one market. Apple's regional breakdown shows double-digit growth across all five regions. Europe contributed the largest absolute increase, while Greater China tied with Europe for the highest year-over-year growth rate. Taken together, these regions gave Apple a broader growth base this quarter than relying solely on the Americas.
Who pushed the increment onto the iPhone?
According to Apple’s consolidated financial statements for this quarter, the company generated $15.4 billion more in revenue compared to the same period last year. iPhone accounted for nearly two-thirds of this increase, which is also the longest blue bar in the chart. This explains why the pace of this quarter’s earnings report has been faster than in previous years’ June quarters.
Services and Mac also did not retreat into the background. The former generated the second-highest additional revenue, followed closely by the latter. iPad was the only category to decline. The overall picture painted by these bars is straightforward: Apple did not rely on a single product category to drive its numbers this quarter, but the iPhone’s contribution was particularly strong.
This distinction is important. If the services business alone drove growth, readers would see a company gradually reducing hardware volatility. The current combination is more like two engines accelerating simultaneously: hardware provides a longer runway for acceleration, while services continue to fill the high-margin segments. According to Apple’s earnings report, the iPhone, Mac, and services business all set new records for the June quarter.
Beyond the product table, the regional table adds another layer of insight. According to Apple’s latest regional breakdown, Europe recorded the highest absolute revenue increase, while revenue in Greater China grew by 22.4% year-over-year. Although these shifts haven’t changed the fact that the iPhone remains the largest source of growth, they mean the answer to “where is growth coming from?” is no longer limited to just one region.
The service has made every dollar of revenue go further.
Apple's consolidated financial statements include a detail rarely highlighted in news headlines: they separately list the cost of goods sold for products and services, allowing the gross profit beyond revenue to be broken down as well.
According to Apple’s latest quarterly earnings, services account for only 28.1% of the company’s revenue but contribute 42.4% of its gross profit. In everyday terms, for every $100 in revenue Apple generates, services make up less than $30, yet they account for nearly half of the gross profit.
The gross margin for the service business is 75.6%, and for the product business, it is 40.1%. The former acts like a thick base layer that continues to support the entire company even as more devices are sold. This structure also explains why service revenue, despite not generating the largest increase in revenue, remains an essential part of analyzing the financial statements. According to Apple’s consolidated financial statements, these ratios are derived by subtracting the respective cost of sales from the corresponding revenue.
The majority of the additional gross profit this quarter still came from product sales. According to Apple’s consolidated financial statements, it accounted for 77.2% of the additional gross profit. This aligns with the rebound of iPhone and Mac sales shown in the previous chart—services have not taken over the spotlight from hardware; instead, they have made the profits left behind during hardware volume growth even greater.
What did that refund change in the profit curve?
Apple disclosed in its press release that the tariff refunds had a positive impact of approximately 2 percentage points on the gross margin for the quarter and increased EPS by $0.11. This figure is not immediately obvious in the earnings report, yet it is sufficient to alter the interpretation of profit growth.
After approximating the deduction based on Apple’s disclosed impact, the year-over-year growth rate of EPS for this quarter is approximately 21.7%. The reported figure differs from this approximate figure by about 7 percentage points. The light blue bars in the chart are not Apple’s non-GAAP metrics; they simply remove the refund impact already provided in the press release from the reported numbers.
This split does not erase Apple's operating performance. After excluding refunds, EPS still outpaced revenue. It simply separates two things: the growth driven jointly by iPhone, Mac, and services, and the one-time refund that added a slope to the profit curve.
The outline of Apple’s earnings report is now clear: a hardware rebound has reignited growth, services have made each dollar of revenue more profitable, and a refund reminder underscores that the profit margin must be examined more closely.
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