Apple CEO Tim Cook conducted his final quarterly earnings call on Thursday, confirming that hardware chief John Ternus will lead future calls. The transition precedes Ternus officially assuming the CEO role on September 1, as Cook moves into the position of executive chairman.
The handover marks the end of a 15-year tenure for Tim Cook. During the Q3 2026 call, Cook focused heavily on the stability of the leadership change. Cook described the process as going “seamlesslyand expressed absolute confidence in Ternus to lead Apple into its next era, stating,
He is truly one of a kind, and there is no better person to take the helm of the company.”
Q3 2026 Financials and the $5 Trillion Milestone
Cook’s final call arrived during a historic week for the company’s valuation. Apple touched a $5 trillion market cap and surpassed Nvidia as the world’s most valuable company. This growth follows a period where the company’s stock has traded at a record price and risen 25% this year, topping its megacap peers.
The fiscal third quarter showed strong hardware performance, though some service metrics missed the mark. While iPhone revenue reached $54.25 billion—driven by a 22 percent increase in sales—services revenue of $30.74 billion slipped downward, disappointing experts who were hoping for more. Overall, Apple reported $109.42 billion in revenue for the third fiscal quarter of 2026.
| Revenue Category | Q3 2026 Amount |
|---|---|
| Total Quarterly Revenue | $109.42 billion |
| iPhone | $54.25 billion |
| Services | $30.74 billion |
| Mac | $10.35 billion |
| Wearables | $7.88 billion |
| iPad | $6.19 billion |
The Mac’s performance was noted as very strong in many regions, partially credited to the popularity and success of the MacBook Neo, a stripped-down, more affordable entry-level SKU in the MacBook line. However, the outlook is clouded by risks. Apple is reckoning with a memory crunch and a rush for chip manufacturing capacity that is forcing the company to lift prices on devices. Fears about memory prices and supply constraints slightly soured the reception to the quarter.
John Ternus and the Strategy of Continuity
Apple is aggressively signaling that Ternus will provide a stable continuation of the current trajectory. The company has gone so far as to coordinate visual cues; at a premiere for the new season of ‘Ted Lasso’, Cook and Ternus wore virtually identical outfits consisting of navy suits, white unbuttoned shirts, and “Believe” pins on their lapels.
For Cook, this was the last Apple TV premiere as CEO. He told Deadline in a joint red carpet interview with Ternus, I feel so much gratitude to have been the CEO of Apple for 15 years and to work with all of the people that I get to work with, it’s a privilege of a lifetime.
“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, CEO of Apple
Ternus, currently Apple’s Senior Vice President of Hardware Engineering, has remained cautious about detailing his specific agenda. When asked about his first act as CEO, he demurred, stating that people would have to wait and see. He similarly avoided specifics regarding AI-enabled device competition, instead reiterating Cook’s existing plans for the space.
Entertainment Momentum and Apple TV
A significant part of the transition involves the entertainment business. Ternus told Reuters on the red carpet that he was committed to building on the company's momentum in the entertainment business
and noted, I think we have such tremendous momentum right now in Apple TV.
Apple began offering original TV series and films through the Apple TV streaming app on November 1, 2019. Reflecting on the service, Cook stated, We’ve been at it for seven years, and it feels like every year is better than the year before.
Immediate Challenges for the New CEO
Ternus inherits several immediate pressures. Beyond the supply chain volatility and memory crunch, Apple has yet to launch a redesigned Siri to the public. This is described as the most glaring example of how far behind the company has fallen in artificial intelligence.
The transition occurs as Cook prepares to assume the role of executive chairman on September 1. The two executives were recently seen together at the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 9, 2026.
