Apple & Amazon Earnings Reports Apple (Q3 Fiscal 2026) The Numbers:
Revenue: $109.42 billion (up 16% YoY), beating Wall Street estimates of $108.86 billion.
Earnings Per Share (EPS): $2.02, beating the $1.89 forecast.
Stock Reaction: Shares fell ~6.6% after-hours despite beating expectations on top and bottom lines.
Key Drivers:
iPhone revenue: Surged 22% to $54.3 billion.
Mac sales: Jumped 29% to $10.4 billion.
Services: Hit a June-quarter record of $30.7 billion (up 12%).
Call & Forward Guidance:
CEO Tim Cook pointed to double-digit growth across every single geographic region and highlighted the rollout of Siri AI.
Why the stock fell: Guidance for next quarter was weaker than hoped. Apple projects September-quarter revenue growth of 9% to 11%. Management warned of increasing supply chain constraints, foreign exchange headwinds, and rising memory costs pressing down gross margins to 47%–48%.
Executive Analysis:
So, this was Tim Cook's last earnings call as CEO. He is not leaving the company, but moving into the role of Executive Chairman. The new CEO, John Ternus, has a long history at Apple. As an engineer, he specializes in hardware. Having been at the company since 2001—a 25-year Apple veteran—he has been around since the days of Steve Jobs and all the big product launches that we all know and are well familiar with. John Ternus is set to bring a hardware, product-first approach back to Apple, perhaps bringing back some of the elements that original founder Steve Jobs brought to the company.
This new Siri AI agent feature is set to launch at some point, which Apple fans will be excited about. As far as the big tech AI race between companies goes, Apple lagged behind by not working on its own Large Language Model (LLM), and there was a point where the price of Apple stock suffered for this. It is widely thought that Apple prides itself on internal security, which was a major reason why it did not build its own LLM. In the end, Apple's stock benefited from the AI race through massive hardware demand and hardware inflation. Whatever happens in tech, it is often thought that Apple is a consumer product brand that you just have to have—especially the iPhone. Apple's share price is down after hours, but we will see what unfolds at the US market open. Amazon (Q2 2026) The Numbers:
Revenue: $200.6 billion (up 20% YoY), blowing past the expected $196.5 billion.
EPS: $5.75, massively beating Wall Street forecasts of $1.81.
Operating Income: Jumped 43% to $27.5 billion.
Stock Reaction: Shares surged ~9% in after-hours trading.
Key Drivers:
AWS Cloud Revenue: Surged 36.7% YoY to $42.2 billion—its fastest growth pace in 18 quarters—driven by AI demand.
AWS Operating Margins: Expanded to 39.4%.
Call & Forward Guidance:
CEO Andy Jassy highlighted that AWS is now running at a $169 billion annualized revenue pace.
CapEx Hike: Amazon raised its full-year 2026 capital expenditure guidance to $220 billion (up from $200 billion), heavily funding AI infrastructure and absorbing higher memory chip prices.
Q3 Guidance: Expecting net sales between $197 billion and $202 billion (9% to 12% YoY growth), with operating income projected between $22.5 billion and $26.5 billion.
Retail & Macro Breakdown:
Amazon, the Jeff Bezos legacy, delivered another great quarter. Once again, this was another earnings report where Amazon Web Services (AWS)—the cloud side of the business—outperformed, driven by massive demand in the tech sector as everything becomes ever more digitalized.
The e-commerce and retail side performed strongly across the board, pulling in steady double-digit growth and solid margin expansion:
North America Retail: Net sales hit $116.2 billion (up 16% YoY). Operating profit for the region reached $9.1 billion (up 21%).
International Retail: Net sales rose to $42.2 billion (up 15% YoY). Profitability here expanded to $1.7 billion in operating income.
Online Stores Direct Sales: Direct store revenue specifically hit $70.4 billion.
Amazon is such a massive part of the economy that, in many ways, the e-commerce side of the business can be viewed as a macro event to gauge the health of the consumer. E-commerce is a huge part of daily life now compared to 2009, when Walmart was king in the US or Tesco held the crown in the UK. Chinese competitors like Temu often undercut Amazon on price, yet they still face many lingering questions regarding product safety and quality. amazon share price up after hours but we will see how things unfold at the US market open .