Apple Beats Q4 Earnings Estimates as iPhone Sales Drive Record Revenue

Apple has delivered better-than-expected financial results for its fiscal fourth quarter of 2026, recording revenue of approximately $114.5 billion, representing a 12% increase compared with the same period last year. The results, announced on November 2, exceeded analysts’ expectations of approximately $113.4 billion. Earnings per share reached $2.10, beating the estimated $1.99 and increasing 14% year over year. The quarter ended September 26, 2026, and marked the first quarterly earnings report under Apple’s new chief executive, John Ternus, who succeeded Tim Cook in September. The company described the performance as a September-quarter revenue record, supported by strong iPhone sales and continued growth across its services business.

The iPhone remained Apple’s biggest revenue driver during the quarter, generating approximately $57.6 billion, an increase of 17% compared with the previous year. The performance exceeded analysts’ forecasts and established a new September-quarter record for the company’s smartphone business. Demand for the iPhone 18 Pro lineup contributed to the growth, although the reported sales period included only a limited number of days following the models’ launch. Apple’s Mac business also performed strongly, generating approximately $10.8 billion and exceeding market expectations. These results suggest that demand for Apple’s premium devices remained resilient despite higher prices and increasing competition in the global consumer electronics market.

Apple’s Services division also achieved a major milestone, recording approximately $31.6 billion in revenue, its highest quarterly performance to date. The division includes services such as the App Store, iCloud, Apple Music, Apple TV+ and other subscription-based offerings. Revenue increased by around 10% year over year, reflecting the continued expansion of Apple’s digital ecosystem. The company also reported that its installed base had exceeded 2.5 billion active devices worldwide, creating a large customer network for its hardware, software and subscription services. However, not every product category performed equally well. iPad revenue came in at approximately $6.2 billion, while Wearables, Home and Accessories generated around $8.3 billion, both falling short of analysts’ expectations.

Despite beating earnings expectations, Apple faces increasing pressure from rising memory-chip prices and other manufacturing costs. The company reported a gross margin of 47.9% for the September quarter, although tariff refunds contributed approximately one percentage point to that figure. During its earnings discussions, management indicated that memory costs are expected to increase further, creating additional pressure on profitability. Apple forecast a gross margin of between 45% and 46% for the December quarter. The company is attempting to manage these expenses through supplier commitments, inventory planning and price adjustments across selected products. Its ability to maintain strong margins while investing in new technologies, including artificial intelligence and its redesigned Siri assistant, will remain an important issue for investors.

Looking ahead, Apple expects revenue to grow between 7% and 10% year over year during the December quarter, potentially producing the strongest quarterly revenue in its history. The company also highlighted its expanding product lineup, including the iPhone Duo, iPhone 18 Pro models, new Mac computers and smart-home devices. The iPhone Duo has reportedly experienced strong demand, with supply constraints preventing Apple from immediately meeting customer orders. Meanwhile, the company’s full fiscal-year 2026 revenue reached approximately $479 billion, marking a new annual record. Although the latest results demonstrate Apple’s financial strength, investors will continue monitoring memory costs, product availability, AI spending and consumer demand as the company enters the important holiday shopping season.