Apple Inc. Reaches $5 Trillion Market Capitalization

Apple Inc. has reached a market capitalization of $5 trillion, supported by strong pricing power and the expansion of its services segment. In the third-quarter 2026 fiscal period ending June 27, the company reported net income of $29.8 billion.

The services division now generates 28% of total revenue and operates with a 76% gross margin, which significantly exceeds the 40% margin produced by hardware products. While the company's shares have risen 1,080% over the last decade, current valuations have become a point of contention among market observers.

The stock currently trades at 35 times forward earnings, representing an 81% premium over the S&P 500 index forward price-to-earnings ratio of 19.3. Some analysts argue the stock is overvalued at $344 and propose a fair value of $295 based on a forward P/E ratio of 30.