Apple reports Q4 revenue and earnings topping estimates
“I think at this point, with everything we’ve achieved, it just feels like we’ve never been more confident that the best is yet to come,” Apple CEO John Ternus said, even as the company issued a lower margin forecast that pushed its stock down in extended trading.
For the fiscal fourth quarter ending in September 2026, Apple reported better-than-expected revenue of $114.48 billion and earnings per share of $2.10, topping LSEG analyst estimates of $113.39 billion and $1.99, according to CNBC reported figures. The numbers mark the first earnings report under Ternus, who took the helm as CEO on September 1, succeeding Tim Cook.
iPhone Sales Climb While Margins Slip on Higher Component Costs
Apple posted iPhone revenue of $57.58 billion, edging past the $56.54 billion estimated by analysts. The period included eight days of sales for the new iPhone 18 Pro, while the newly launched foldable iPhone Duo arrived after the quarter closed.
CFO Kevan Parekh noted in an earnings statement that the company capped off a fiscal year with all-time record revenue of $479 billion and double-digit EPS growth. Gross margins landed at 47.9%, down from 50.1% in the previous quarter as reported by The Motley Fool.
Diverging Product Performance Across Hardware and Services
Hardware segments showed mixed results against Wall Street expectations. Mac revenue reached $10.79 billion, topping the $9.61 billion forecast from LSEG. Conversely, iPad revenue stalled at $6.23 billion, missing the $6.7 billion estimate. Wearables, Home and Accessories brought in $8.3 billion, falling short of the $9.06 billion projection.
Services revenue hit $31.57 billion, closely tracking the $31.58 billion consensus. Apple’s restraint regarding high-spend artificial intelligence initiatives has drawn praise from market strategists, though investors remain watchful for how Ternus intends to shape the company’s AI integration.
Apple Revenue in Greater China Grows 28 Percent
Greater China revenue reached $17.54 billion, missing analyst expectations of $18.75 billion. However, that figure still represented a 28% year-over-year increase driven by strong demand for iPhones and Macs in the region. Apple plans to launch its Apple Intelligence features in China in December after waiting years to make technical improvements and win regulatory approval in the country.
For the upcoming December quarter, Apple expects annual revenue growth between 7% and 10%, outpacing the 6.1% average analyst estimate compiled by LSEG. The company forecast a gross margin range of 45% to 46% for the current period, trailing the 46.3% analyst consensus as memory supply pressures persist.