Tim Cook hosted his final quarterly earnings call as Apple’s CEO Thursday evening, and it ended on a positive note: Apple beat Wall Street analysts’ revenue estimates. But it appears to have done so via a one-time windfall: an estimated $2.19 billion in tariff refunds.
“Company gross margin was 50.1 percent, including a favorable impact of approximately 2 percentage points from tariff refunds,” the company announced in a press release. “Diluted earnings per share was $2.02, up 29 percent year over year, and included a favorable impact of $0.11 from tariff refunds.”
The $2.19 billion figure is an estimate based on the company’s reported total revenue of $109.4 billion.
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Apple’s stock dropped following its revenue report. The one-time tariff rebate artificially inflated the company’s gross margin. Without it, the company failed to beat analysts’ expectations, per CNBC.
President Trump aggressively pursued global tariffs after he returned to the White House, resulting in a shock to the global economic system and a wave of price increases on consumer tech products.
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However, in February, the U.S. Supreme Court ruled that the Trump administration lacked the authority to unilaterally impose tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA), striking down Trump’s signature economic policy.
As a result, many companies — like Apple — became eligible for refunds for the tariff fees levied against them.
Apple was one target of the Trump administration’s tariffs, and that’s not speculation. The president expressed a desire for the iPhone to be manufactured domestically (which most experts agreed was not technically possible); at one point, Trump threatened Apple specifically with 25 percent tariffs in a Truth Social post.
Apple wasn’t the only company that faced tariff costs in the billions. But in the end, the company recouped billions.
Previously, Apple disclosed that it paid more than $3.3 billion in tariff fees. During the Q2 2026 earnings call, Cook said any tariff refunds would be reinvested in the U.S.
