Key Notes
- Apple reported fiscal Q4 revenue of $114.48 billion and diluted EPS of $2.10, with earnings including a $0.05 benefit from tariff refunds.
- iPhone sales reached $57.58 billion, while Greater China revenue of $17.54 billion and wearables sales of $8.30 billion missed estimates.
- Services revenue set an all-time record of $31.57 billion as investors awaited the holiday-quarter outlook under John Ternus.
Apple Inc. (NASDAQ: AAPL) beat fiscal fourth-quarter earnings and revenue estimates on November 2, reporting $114.48 billion in sales as strong iPhone sales supported John Ternus’s first earnings release as chief executive. Weaker-than-expected Greater China and wearables sales complicated the headline beat.
Diluted earnings reached $2.10 a share, compared with an estimate of $2.00, while revenue exceeded the $113.47 billion forecast. Apple’s release showed September-quarter records for overall revenue, iPhone sales and EPS, alongside an all-time Services revenue high.
AAPL initially traded lower after the report before moving into positive territory. Shares were $339.89, up 0.46% from the regular-session close, in a Yahoo Finance snapshot at 21:40 UTC. The stock closed at $338.32, down 1.83% on the day. These are separate regular-session and after-hours moves.
iPhone Sales Drive the September Quarter
Apple’s financial statements show iPhone revenue of $57.583 billion, above the $56.49 billion estimate and up approximately 17.5% from a year earlier. The category supplied just over half of total quarterly sales.
The result matters for shareholders because Apple’s largest business remains central to the performance of the wider company. Services and other devices diversify revenue, but a substantial change in iPhone demand still has a large effect on the group’s sales mix.
Mac revenue rose to $10.792 billion from $8.726 billion a year earlier. By contrast, iPad sales declined to $6.229 billion from $6.952 billion. The figures show a quarter led by iPhone and Mac growth, with uneven performance across the broader hardware lineup.
China and Wearables Miss the Forecasts
Greater China revenue was $17.539 billion, compared with expectations of $18.75 billion. That is a shortfall of approximately $1.21 billion, or 6.5%, against the forecast.
The miss should not be confused with a year-on-year decline. Greater China sales increased approximately 21% from $14.493 billion in the same quarter of fiscal 2025. Apple grew in the region, but the result fell short of the higher level investors had anticipated.
Wearables, Home and Accessories revenue was $8.3 billion, below the $9 billion estimate and down approximately 7.9% from a year earlier. The category therefore presented a different picture from China: both weaker annual sales and a miss against expectations.
For AAPL investors, the distinction helps explain why the overall beat does not settle every question about demand. Stronger iPhone sales can coexist with pressure elsewhere in the product range and an underwhelming result relative to regional forecasts.
Services Revenue Reaches an All-Time Record
Services revenue reached $31.573 billion, up about 9.8% year over year and almost exactly in line with the $31.58 billion forecast. Apple explicitly identified the figure as an all-time revenue record.
That is a different claim from the June-quarter record discussed in our earnings preview. The new result surpasses both the $30.739 billion June quarter and the $30.976 billion March quarter, rather than merely setting a record for the same seasonal period.
The business generated more than a quarter of Apple’s quarterly revenue. Its continuing expansion gives investors another measure of customer spending beyond device purchases, although the release does not isolate an incremental revenue contribution from Siri AI.
Tariff Refunds Help Earnings and Margins
Apple reported a gross margin of 47.9%, including an approximately one-percentage-point benefit from tariff refunds. Its $2.10 diluted EPS included a favorable $0.05 contribution from the refunds.
The distinction matters when comparing this quarter with the preceding one. Apple’s June-quarter results included an 11-cent EPS benefit and an approximately two-percentage-point gross-margin benefit from tariff refunds. Headline comparisons therefore reflect a changing contribution from that item.
Total operating expenses were $19.189 billion, broadly matching the $19.19 billion estimate and up approximately 20.6% year over year. Operating income reached $35.631 billion, while net income was $30.711 billion. The increase in spending makes the balance between sales growth and profitability particularly relevant to the stock.
The Holiday Product Cycle Is the Next Test
The reported quarter ended September 26. It therefore excludes retail sales of iPhone Duo, which launched on October 23, as we previously reported. Its contribution belongs to the current holiday quarter, Apple’s fiscal first quarter of 2027.
The same timing distinction applies to the touchscreen MacBook Pro, which we covered ahead of earnings. November deliveries can influence the next quarter, rather than explain the September results already reported.
Apple ended fiscal 2026 with record annual revenue of $478.834 billion and declared a $0.27 quarterly dividend, payable November 16 to shareholders of record on November 12. Management’s earnings call is scheduled for 22:00 UTC on November 2.
For shareholders, the next questions are how new-product deliveries translate into holiday sales, whether regional demand meets expectations and how component costs affect margins. The release provides a strong historical quarter; the call will give investors their next opportunity to assess the business under Ternus.
