Apple's Strong Earnings Report Clouded by Supply Chain Concerns
Apple's Q3 earnings report revealed strong revenue growth, but also highlighted supply chain challenges and rising costs.
The company reported a 16% year-over-year revenue increase to $109 billion in its fiscal Q3 2026, driven by a 22% surge in iPhone sales to $54 billion and a 29% rise in Mac sales to $10 billion.
Although earnings per share climbed 29% to $2.02, surpassing Wall Street's estimate of $1.94, management warned that supply shortages and rising component costs would impact sales of iPhones, Macs, and iPads, potentially squeezing profit margins.
Apple guided for revenue growth of only 9% to 11% year-over-year in the upcoming quarter, falling short of Wall Street's 12% projection, reflecting concerns about future sales and possibly affecting investor confidence.