Apple is set to report its fiscal third-quarter 2026 earnings on July 30, with analysts expecting revenue between $108.8 billion and $108.9 billion and earnings per share near $1.88 to $1.89. The earnings call, scheduled for 2 p.m. Pacific / 5 p.m. Eastern, comes as investors have warmed to the company's capital-light approach to artificial intelligence — a shift that helped narrow the market value gap with Nvidia in mid-July.
Why the AI approach matters
Apple's AI strategy leans heavily on on-device inference and a private cloud for heavier tasks, deliberately avoiding the hyperscaler-style capital expenditure that rivals like Google and Microsoft have embraced. The on-device focus keeps latency low and privacy high, the company has argued, and allows feature expansion without a massive server footprint. That capital-light model has resonated with investors looking for AI exposure without the ballooning data-center costs.
Services growth and the App Store slowdown
Bank of America modeled Services revenue up about 14% year-over-year in the June quarter, but noted that App Store growth slowed to roughly 3.2% from about 9.8% in the prior period. The deceleration is being offset by iCloud and licensing revenue, which are expected to pick up the slack. The mix matters because Services carries higher margins than hardware and has become a key driver of Apple's overall profitability.
iPhone demand in focus
Investors are watching iPhone demand closely for signs of upgrade-cycle sustainability, regional performance — especially in China — and the impact of the Pro mix on average selling prices. China has been a choppy market for Apple due to increased local competition. The Pro skew of iPhones has been important for margins; any shift toward base models or increased promotional activity could affect gross margin expectations. The earnings call will include commentary on iPhone demand, Services momentum, and AI spending plans.
What to watch on the call
The July 30 conference call will be the first chance for executives to address how the capital-light AI strategy is translating into product roadmaps and whether the Services slowdown is a blip or a trend. Analysts will also press for details on China's competitive landscape and how Apple plans to sustain the Pro mix that has buoyed average selling prices. The call is scheduled for 2 p.m. Pacific / 5 p.m. Eastern.
