Apple CEO Tim Cook marked his final quarterly earnings call on Thursday, reporting $109.4 billion in revenue while confirming that hardware chief John Ternus will take over future calls when he assumes the chief executive role on September 1.
The quarterly call served as a symbolic baton passing. Cook, who has led Apple through 15 years of financial calls, used the meeting to cement confidence in his successor.
Tim Cook Bows Out After 15 Years of Financial Calls
Reflecting on his tenure before opening the floor to analysts, Cook expressed gratitude to long-term shareholders and analysts who followed the company. This will be my final earnings call, and John will lead these calls going forward,
Cook said during the broadcast. The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era.
“This will be my final earnings call, and John will lead these calls going forward, The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era.”
Tim Cook, outgoing CEO, Apple
The handover follows months of carefully coordinated public appearances. Earlier in the week, Cook and Ternus appeared side by side on the red carpet at the Academy Museum of Motion Pictures in Los Angeles for the premiere of the fourth season of Ted Lasso, wearing matching navy suits and Believe lapel pins.
Q3 2026 Financial Results and iPhone Sales
Behind the leadership transition lay a resilient hardware quarter led by strong iPhone adoption. Apple reported $54.3 billion in iPhone revenue. Other segments posted mixed results against Wall Street expectations.
| Segment | Q3 2026 Revenue |
|---|---|
| iPhone | $54.3 billion |
Net income climbed to $29.8 billion.
Supply Constraints and Memory Costs Loom Over Ternus
Despite the earnings beat, the stock slipped after Tim Cook warned of very significant constraints across the company’s supply chain.
The primary issue is advanced nodes that we run our SOCs on,
Cook explained during the analyst call. That’s the primary supply constraint now, and the root cause of it is not a regular supply issue. It’s a demand forecast issue.
Apple already raised hardware prices in June to offset rising memory costs, though the iPhone has escaped those hikes so far. Analysts, however, anticipate potential price adjustments later in the year.
John Ternus Tackles AI Competition and Entertainment Momentum
Incoming CEO John Ternus spoke sparingly during the earnings call. When Bank of America analyst Wamsi Mohan questioned him about potential long-term competition from AI-enabled hardware built by companies like OpenAI and SpaceX, Ternus kept his response measured.
“There is so much opportunity for us with everything that’s happening in this space, and we’re just really focused on our plans and very excited about it.”
John Ternus, incoming CEO, Apple
Beyond hardware and artificial intelligence, Ternus emphasized his commitment to expanding Apple’s footprint in entertainment. Speaking on the red carpet ahead of the Ted Lasso Season 4 premiere, he highlighted the growing momentum of Apple TV, which has dropped its plus sign branding and built an award-winning catalog including CODA, the movie F1, and returning series.
As Ternus prepares to take the official reins on September 1, his leadership will face an immediate trial by fire. Apple is expected to release the iPhone 18 that same month.
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