Tim Cook's final quarterly earnings call as Apple's CEO ended with what looked like another strong result for the company. Apple reported revenue of £82.1 billion, beating Wall Street analysts' expectations.
However, the numbers came with an important qualification. Apple received an estimated £1.65 billion in tariff refunds, giving its results a one-time boost.
The refund helped lift the company's gross margin and earnings per share, meaning the headline figures looked stronger than they would have without the payment. Apple's stock subsequently fell following the revenue report. Without the tariff refund, the company may not have beaten some analysts' expectations, according to reports.
The refund came after the US Supreme Court ruled that the Trump administration had lacked the authority to impose the tariffs under the International Emergency Economic Powers Act of 1977. Apple had previously paid billions in tariffs, making the refund a major financial benefit.
Tariff Refund Boosted Apple's Results
Apple said its gross margin was 50.1 per cent, including a favourable impact of approximately two percentage points from tariff refunds.
The company also reported diluted earnings per share of $2.02, up 29 per cent year on year. That figure included a favourable impact of $0.11 from tariff refunds.
Based on Apple's reported total revenue of $109.4 billion, the tariff refund is estimated at around $2.19 billion, or roughly £1.65 billion.
The payment gave Apple a one-time financial boost at a crucial moment. While the company was able to report stronger headline figures, the underlying results were less impressive once the refund was removed.
Apple's stock dropped after the revenue report, highlighting the market's reaction to the figures and the role played by the tariff payment.
The refund was possible after the US Supreme Court ruled in February that the Trump administration did not have the authority to unilaterally impose tariffs under the International Emergency Economic Powers Act of 1977.
That decision meant companies that had paid the tariffs could become eligible for refunds. Apple was among the companies that had faced those costs.
Apple Had Already Paid Billions in Tariffs
Apple had previously disclosed that it paid more than $3.3 billion, or roughly £2.5 billion, in tariff fees.
The company had also been directly targeted by President Donald Trump during his push for tariffs. Trump repeatedly expressed a desire for iPhones to be manufactured domestically, something most experts agreed was not technically possible in the near term.
At one point, Trump specifically threatened Apple with a 25 per cent tariff in a Truth Social post.
That threat formed part of a wider push by the Trump administration to impose tariffs around the world after Trump returned to the White House. The policy created additional costs for companies and raised concerns about higher prices for consumer technology products.
Apple was therefore not simply benefiting from a refund that appeared unexpectedly. It was recovering money it had previously paid in tariff fees.
The company was not alone in facing billions of dollars in tariff costs, but Apple's latest results show how much the subsequent refunds could affect corporate earnings.
There is also an important caveat to the refund. During Apple's second-quarter 2026 earnings call, Cook said that the company plans to reinvest any tariff refunds it receives in the United States.
That means the money may not simply become additional profit for Apple. While the refund helped its latest reported figures, Cook's previous comments indicate that Apple intends to put the funds back into its US operations.
