Apple reported a record $11.73 billion in research and development (R&D) expenses for its fiscal third quarter of 2026, continuing a sharp acceleration in spending.

This figure represents a 32% increase from the same quarter last year. Year-to-date R&D spending for fiscal 2026 has reached $34.04 billion, nearly matching the full fiscal year total of $34.55 billion from 2025. Apple's R&D expenditure has surpassed its annual totals for fiscal 2024 and 2023.

CEO Tim Cook noted that R&D investment is "accelerating much higher than the company" overall, particularly emphasizing investments in AI. CFO Kevan Parekh clarified that AI spending is being added incrementally to existing product roadmap investments.

This surge in R&D spending comes as other tech companies, like Alphabet and Meta, have faced stock declines after announcing increased AI-related capital expenditures without immediate, clear payoffs. Apple shares experienced a roughly 4% drop in after-hours trading following the announcement.