Apple Just Made a Move Most Investors Overlooked. This Is Why I Keep Buying The Stock

Alex Sirois

Mon, September 7, 2026 at 4:51 PM GMT+3 5 min read

Quick Read

Apple (AAPL) posted its ninth straight EPS beat with revenue up 16%, while a new $100B buyback and 75.6% Services margin anchor the long-term bull case.
Unlike MSFT and GOOGL, Apple combines a 171% ROE and 53% ROIC with 2.5 billion devices feeding a growing high-margin subscription flywheel.
Tim Cook flagged surging DRAM costs as a '100-year flood,' yet Apple raised iPhone prices and still guided for 9 to 11% September quarter revenue growth.
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Apple didn't make the cut. Enter your email to see the names that beat AAPL. The report is free. Enter your email and see if any of your stocks made the cut.

I keep hitting the buy button on Apple (NASDAQ:AAPL) because the company just quietly rewrote the rules of its own product calendar, and most of my friends did not notice. Apple is officially breaking away from its traditional all-in-one September hardware event model, moving to a split release structure that spreads product catalysts across the year. That sounds like a logistics footnote, but it is material. For a long-term holder like me, it means more upgrade windows, more press cycles, and more moments where a customer walks into a store and hands over a credit card.

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Why the Buy Button Keeps Firing

The core of my thesis is boring on purpose. Apple owns the customer. The active installed base surpassed 2.5 billion devices in Q1 FY2026, and paid subscriptions crossed 1.5 billion by the June quarter. That is the flywheel. Every device sold is a future Services customer, and Services is where the margin lives. Services gross margin came in at 75.6% in Q3 FY2026, with Services revenue of $30.7 billion, up 12% year over year. Hardware sells the razor. The blades pay my dividend.

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Three Reasons the Thesis Holds

First, the top line is accelerating from a base almost no company on earth can match. Q3 FY2026 revenue reached $109.42B, up 16.36% year over year, with EPS of $2.02 beating the $1.89 consensus, the ninth consecutive EPS beat. iPhone revenue was $54.3 billion, up 22%, and Mac revenue grew 29% to a June quarter record. Tim Cook told the call the iPhone cycle has been running "a 22% increase year to date". That is a company still compounding at scale.

Second, the capital return program is the quiet compounding engine. Nine-month share repurchases hit $62.094B through June 27, 2026, on top of $90.711B in fiscal 2025, and the board authorized an additional $100B buyback and raised the dividend 4% to $0.27 per share. Apple ended the June quarter with $147 billion in cash and marketable securities against $84 billion in total debt. That balance sheet funds the buyback regardless of what the market thinks this month.

Third, the reinvestment story is real. Apple reiterated a $600 billion U.S. commitment over four years and signed a multi-year Broadcom agreement expected to exceed $30 billion for custom silicon. R&D spend rose to $11.73B in Q3 FY2026 from $8.9B a year earlier. That is the AI bill being paid up front.

Why Apple Over Other Mega-Cap Names

Retirement-focused readers would reach for Microsoft (NASDAQ:MSFT) or Alphabet (NASDAQ:GOOGL) first. I own both in smaller size. What keeps my incremental dollar going to Apple is the combination no peer replicates in the same package: a 2.5 billion device installed base, ROE of 171.4%, ROIC of 53.3%, and a shareholder yield dominated by buybacks rather than a single-digit dividend line. The dividend yield of 0.33% understates the true cash return once repurchases are counted.

Memory Risk I Actually Watch

Memory costs. Tim Cook called it "a 100-year flood on the memory pricing with exponential increases in memory prices" and warned that the primarily three-supplier DRAM market will push costs higher again in the September quarter. Layer on the fact that tariff refunds added roughly two percentage points to gross margin and about $0.11 to EPS as a one-time tailwind, and the margin story looks less pristine. It has not changed my thesis because Apple already "reluctantly raised prices" and still guided September quarter revenue growth of 9% to 11% with gross margin of 47% to 48%. Pricing power is the moat.

What Keeps the Buy Button Active

Ten years of ownership returned 1,199.26%. Five years returned 112.59%. I am buying the next decade of a company that turns 2.5 billion devices into 1.5 billion paid subscriptions and pays me to wait.

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