App Store growth slowing ahead of Q3 earnings; Services narrative headwind
Key Questions
How much did App Store revenue grow in the June 2026 quarter?
Growth slowed to approximately 3% year-over-year, with U.S. revenue declining 6%. This marks a notable slowdown from prior periods.
What impact does the App Store slowdown have on Apple's Services narrative?
It presents a clear headwind ahead of Q3 earnings, challenging the story of strong Services growth. UBS still projects 14.3% Services growth but has added caution to its outlook.
Why is the App Store growth slowdown significant for investors?
It signals potential challenges in sustaining Services momentum, a key area Apple has emphasized for future growth beyond hardware like the iPhone.
App Store revenue growth slowed to ~3% YoY in the June 2026 quarter, with US down 6%. This is a clear headwind for the Services growth narrative ahead of Q3 earnings. UBS still expects ~14.3% Services growth, but the data adds caution.
Sources (2)
Updated Jul 13, 2026