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Apple's Q3 2026 R&D Spending Reaches Record $11.73 Billion, Up 32% Year-Over-Year
Key points
- Apple spent $11.73 billion on R&D in Q3 2026.
- This is a 32% increase year-over-year for the quarter.
- Fiscal 2026 R&D spending totals $34.04 billion so far.
- AI investments are contributing to the R&D acceleration.
Record R&D Expenditure in Q3 2026
Apple announced its research and development expenses reached a record $11.73 billion in the third quarter of fiscal year 2026. This figure represents a 32% increase compared to the same quarter in the previous year, continuing a trend of accelerated spending throughout fiscal 2026.
Fiscal Year 2026 Spending Nears Previous Year's Total
With the Q3 results, Apple's total R&D spending for fiscal 2026 has reached $34.04 billion. This amount is close to the $34.55 billion spent during the entirety of fiscal 2025, with one quarter still remaining in the current fiscal year. The company has already surpassed its annual R&D spending for fiscal 2023 and 2024.
Focus on AI Investments
Apple CEO Tim Cook stated that the company is "clearly investing more" in R&D, noting that the acceleration is significantly higher than the company's overall growth. Apple CFO Kevan Parekh specified that investments in artificial intelligence are being added incrementally to the company's existing product roadmap expenditures, contributing to the increased R&D costs.
Market Reaction to Increased Spending
Following the announcement, Apple's shares experienced a decline of approximately 4% in after-hours trading. This market reaction aligns with recent trends where other major tech companies, such as Alphabet and Meta, also saw their shares fall after announcing increased AI-related capital expenditures without immediate clear financial returns.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Apple reported a record $11.73 billion in research and development expenses for Q3 2026, marking a 32% increase from the previous year. This spending brings Apple's fiscal 2026 R&D total to $34.04 billion, nearly matching its full fiscal 2025 expenditure with one quarter remaining, and reflects increased investment in areas like AI.