Apple Stock Falls Despite Beating Earnings Expectations Amid App Store Revenue Decline

Apple Inc.'s stock fell by 1.75% on August 20, 2026, as shares gave up ground despite strong fiscal Q3 2026 earnings beating expectations.

The company reported a revenue of $109.4 billion in the June quarter, a 16% year-over-year increase, and an earnings per share of $2.02, exceeding the consensus estimate of $1.89.

However, the App Store's net revenue saw its first decline in four years, dropping by 0.6% compared to the same period last year, marking a break from the multi-year expansion trend in Apple's high-margin Services business.