Apple Reports Q3 Earnings on July 30. Here's What Investors Should Watch For During Tim Cook's Final Earnings Call as CEO

It's the end of an era. Tim Cook, the CEO of Apple (NASDAQ: AAPL), who has led the company since 2011, will step down from his role and become the company's executive chairman. John Ternus, the company's senior VP of Hardware Engineering, will take the helm. That means Apple's upcoming update, for the third quarter of its fiscal year 2026 -- set for release on July 30 -- will be Tim Cook's last as CEO. Here's what to pay attention to in this upcoming quarterly report.

Image source: The Motley Fool.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Can the iPhone continue driving growth?

Apple has posted strong financial results over the past few quarters. The company has returned to double-digit year-over-year revenue growth, and in its latest period, it posted its strongest result in that category in several years.

AAPL Revenue (Quarterly YoY Growth) data by YCharts

The company's iPhone 17 has been doing much of the heavy lifting. However, Apple has encountered supply constraints in its device segment. One thing to watch out for in the next update is whether Apple is still dealing with supply constraints and what impact they had on top-line growth during its third quarter. Apple expects revenue growth between 14% and 17%.

It may land toward the higher end of that range (or above), provided the iPhone maintained its momentum over the period, and the company addressed its supply constraints. It will also be interesting to see whether Apple can set new records for active devices across the iPhone and other products, as it often does, and whether the company's subscription base continues to expand. Apple's fourth-quarter guidance will also be a key metric to watch for. If management once again predicts mid-teens revenue growth, that will say a lot about the health of the business.

Is Apple stock a buy?

Apple could fall short of expectations in its upcoming period, potentially sending the stock sharply lower. However, for investors focused on the long game, the company looks attractive regardless of what happens when it releases its Q3 earnings report. Here are three reasons why. First, Apple is reportedly planning to launch a brand-new, foldable iPhone. This device could help it compete with similar ones other smartphone makers have released, meaningfully expand its market, and boost its ecosystem of active devices.

Second, Apple's services segment remains healthy and will only improve as the company continues to bring new customers into its ecosystem. That will lead to stronger profits, since its services segment carries much higher margins than its device business. Third, Apple remains a terrific dividend stock. The company's forward yield isn't very impressive at 0.3% -- the S&P 500's average is about 1.1% -- but Apple hikes its dividends regularly and has ample room to keep doing so, given its very conservative 15.6% cash payout ratio. Apple is worth sticking with for all those reasons, regardless of what happens on July 30.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.