Apple FYQ3 2026 First Take: With expectations high, the quarter looked muted. Revenue landed broadly in line.GPM benefited ~200bps from tariff refunds. Ex-refund, GPM was ~48%, also in line with expectations.

1) Double-digit revenue growth led by iPhone 17. iPhone revenue rose 22% YoY, with iPhone 17 posting double-digit unit growth in China and other overseas markets. As memory prices kept climbing, peers raised prices while iPhone 17 held prior pricing, winning more consumer demand.

2) Margin uplift: hardware GPM reached 40.1%, including ~250bps from tariff refunds. Ex this effect, hardware GPM was ~37.6%, down 120bps QoQ, mainly due to sharply higher memory costs.

As Apple targets the mid-to-high end, the cost impact from memory inflation is smaller than for rivals. The company digested the pressure more effectively.

Beyond the quarter, management guided next-quarter revenue growth of 9–11% YoY ($111.7–113.8bn) and GPM of 47–48%. iPhone growth is guided at ~15%, remaining the main driver.

With third-party data already showing strong iPhone shipments, expectations had been lifted. Amid the recent AI pullback, earnings support has turned Apple into a haven trade, buoying the multiple.

However, the print offered few incremental positives, with growth still volume-led. The next-quarter guide suggests revenue growth is set to slow, weighing on sentiment.The iPhone 17 cycle has been successful. Focus now shifts to iPhone 18 and Apple Intelligence. For more, follow Dolphin Research's follow-up takes and Trans.$Apple(AAPL.US)