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Apple's revenue at the end of the fiscal year exceeded its own forecast, and the iPhone Duo is yet to be released. iPhone and Mac sales grew significantly, while iPad and wearables declined. This is John Ternus's first set of figures as CEO.
Apple has released its results for the fourth fiscal quarter, which ended on September 26. Revenue rose 12 percent to $114.5 billion, a record for a September quarter. Earnings per share reached $2.10.
The benchmark is analysts' expectations and the outlook from the July conference call. Apple's revenue is above both of these figures. The exact numbers can be found in the consolidated financial statements.
Key Facts at a Glance
- Revenue, at $114.5 billion, is 12 percent higher than the previous year and above Apple's range of 9 to 11 percent.
- Earnings per share are $2.10, compared to a consensus estimate of $1.98. This includes 5 cents from customs refunds.
- iPhone sales grew by 17.5 percent, Mac sales by 23.7 percent. iPad and wearables sales shrank.
- The fiscal year closes with record sales of $479 billion.
- The iPhone Duo only became available after the end of the quarter.
Apple surpasses its own outlook
Apple had projected revenue growth of 9 to 11 percent, anticipating supply shortages of iPhones, Macs, and iPads as a drag on this figure. The actual result was 11.7 percent. That's roughly $1.5 billion more than the consensus forecast and a good $700 million more than the upper end of the range would suggest.
| Key figure | Q4 2026 | Apple's outlook | Consensus (Zacks) | Q4 2025 |
|---|---|---|---|---|
| Sales volume | 114.48 billion $ | 111.7–113.7 billion $ (calculated) | 112.95 billion $ | 102.47 billion $ |
| Earnings per share | 2,10 $ | – | 1,98 $ | 1,85 $ |
| Net profit | 30.71 billion $ | – | – | 27.47 billion $ |
| Gross margin | 47,9 % | 47–48 % | 47.5 % (calculated) | 47,2 % |
| Operating expenses | 19.19 billion $ | 19.1–19.4 billion $ | – | 15.91 billion $ |
| Tax rate | 15,0 % | approximately 16.5 % | – | 16,3 % |
The difference in earnings per share is smaller than it appears. The tax rate was 15.0 percent, below the announced 16.5 percent. At the announced rate, earnings per share would theoretically be around $2.06.
In its press release, Ternus focuses on the new devices:
We're closing out the year with our most ambitious lineup yet. This includes the iPhone Duo, the most transformative iPhone since the original, and the iPhone 18 Pro and iPhone 18 Pro Max, our most powerful iPhones to date.
iPhone and Mac are growing the fastest
The iPhone reached a record $57.58 billion for a September quarter, slightly exceeding consensus estimates. The biggest upward deviation came from the Mac, which surpassed expectations by $1.2 billion despite anticipated shortages. This is also the first full quarter with the prices increased in June.
| Division | Q4 2026 | Q4 2025 | Change | Consensus (Zacks) |
|---|---|---|---|---|
| iPhone | 57.58 billion $ | 49.03 billion $ | +17,5 % | 57.18 billion $ |
| Mac | 10.79 billion $ | 8.73 billion $ | +23,7 % | 9.56 billion $ |
| iPad | 6.23 billion $ | 6.95 billion $ | -10.4 % | 6.54 billion $ |
| Wearables, Home and Accessories | 8.30 billion $ | 9.01 billion $ | -7.9 % | 9.00 billion $ |
| Services | 31.57 billion $ | 28.75 billion $ | +9,8 % | 31.50 billion $ |
| In total | 114.48 billion $ | 102.47 billion $ | +11,7 % | 112.95 billion $ |
iPad and wearables both remain below consensus. iPad sales declined more sharply than in the June quarter, falling by 5.9 percent. Wearables had recently gained 6.5 percent.
Services reached a new high of $31.57 billion, but at 9.8 percent, their growth was slower than the 12.1 percent seen in the June quarter. This is close to what Apple had announced: the same growth rate as before, minus any currency effects.
The iPhone Duo is still missing from the bill
The quarter ended on September 26. The iPhone 18 Pro models went on sale on September 18 and are therefore only included in the figures for just over a week. The iPhone Duo followed on October 23 and is counted entirely in the December quarter.
Unlike the previous year, there was no new standard model: In the fall, only the Pro models and the iPhone Duo were added to the iPhone lineup.
Greater China is growing the fastest, Europe is cooling down
Four out of five regions are growing, with only Japan experiencing a slight decline. Greater China is growing at 21 percent, almost twice as fast as the company as a whole.
| Region | Q4 2026 | Q4 2025 | Change |
|---|---|---|---|
| America | 48.68 billion $ | 44.19 billion $ | +10,2 % |
| Europe | 32.01 billion $ | 28.70 billion $ | +11,5 % |
| Greater China | 17.54 billion $ | 14.49 billion $ | +21,0 % |
| Japan | 6.54 billion $ | 6.64 billion $ | -1.4 % |
| Rest of Asia-Pacific region | 9.71 billion $ | 8.44 billion $ | +15,0 % |
Europe is growing at only half the rate of the June quarter, when the increase was 22.4 percent. Apple's region includes not only the EU but also Switzerland, the UK, India, the Middle East, and Africa. Apple does not report Germany separately, so it is not possible to draw conclusions about the German-speaking market as a whole.
Without the effect of tariffs, the margin decreases, and inventories increase
The gross margin, at 47.9 percent, is at the upper end of the range, but includes approximately one percentage point from customs refunds. Excluding this item, it is around 46.9 percent, 0.3 points below the previous year's figure of 47.2 percent. UBS had expected a decline of around 0.7 points, primarily due to storage prices.
Inventories rose to $14.5 billion, up from $11.1 billion at the end of June and $5.7 billion at the end of the previous fiscal year. Apple spent $11.73 billion on research and development, 32.3 percent more than a year ago.
Shareholders will receive $28 billion in cash flow this quarter, the same amount as the operating cash flow generated. The dividend remains at $0.27 per share and will be paid on November 16 to all shareholders registered on November 12.
$479 billion in the fiscal year
Over the past twelve months, Apple generated $478.83 billion in revenue, 15.1 percent more than the $416.16 billion of the previous year. Chief Financial Officer Kevan Parekh called it an all-time record. Net income rose 18.0 percent to $132.18 billion, and earnings per share increased 20.4 percent to $8.98.
The iPhone accounts for more than half of the revenue, generating $254.10 billion and representing a 21.2 percent increase. Services reached $123.30 billion, a 13.0 percent increase.
The bill for autumn is yet to come
I think the numbers are strong, but they represent only a small part of the evening's news. They describe a quarter almost entirely devoid of new devices, and the Mac increase also occurred before the current model launch. Therefore, the outlook for the December quarter, which the report makes no mention of, will determine the overall sentiment.
He will speak in the conference call at 11 p.m., the first with Ternus as CEO. Analysts' earnings forecasts for this quarter range from $131.5 billion to $170.4 billion, leaving considerable room for disappointment.
For buyers in German-speaking countries, the most important factor is how Apple will handle storage costs. iPhone prices already rose in September, Macs and iPads were affected back in June, and the profit margin, excluding customs duties, is lower than last year.
Did the recent price hikes for the Mac or iPhone deter you from buying one, or did you go for it anyway? Tell us in the comments what you decided.
