Apple Beats Estimates as iPhone Sets a September Record and Services Hit a High

Apple reported fiscal fourth-quarter revenue of $114.5 billion on Monday, up 12 percent from a year earlier.

Apple makes iPhones, Macs and iPads and sells services such as the App Store and subscriptions. It reported results for the quarter ended September 26, 2026, after the market close on Monday, November 2.

“Today, Apple is proud to report a September quarter revenue record of $114.5 billion, up 12 percent from a year ago, with iPhone reaching a September quarter record and Services reaching an all-time high, capping off our best fiscal year ever,” said John Ternus, Apple's CEO. It was the first results report under Ternus, who took over from Tim Cook on September 1.

iPhone and Mac beat the bar

iPhone revenue rose to $57.58 billion, a September-quarter record. Analysts had expected $56.54 billion, according to data compiled by LSEG and reported by Reuters. Mac revenue reached $10.79 billion, well above the $9.61 billion estimate.

Diluted earnings per share (EPS) was $2.10, up 14 percent, against an estimate of $1.99. Net income was $30.71 billion. Total revenue also cleared the $113.39 billion estimate the same data set carried.

Services hit a record, two lines missed

Services revenue, from the App Store, subscriptions and payments, rose to $31.57 billion, an all-time high. That was essentially in line with the $31.58 billion estimate. Products revenue was $82.90 billion of the total.

Two lines came in light. iPad revenue fell to $6.23 billion, below the $6.70 billion estimate. Wearables, Home and Accessories revenue was $8.30 billion, below the $9.06 billion estimate.

A margin helped by tariff refunds

Gross margin, the share of revenue left after production costs, was 47.9 percent. Analysts had expected 47.5 percent. About one percentage point of the margin came from tariff refunds, and refunds added $0.05 to EPS.

Higher memory costs weighed on the quarter, Reuters reported. Price rises partly offset them: Apple raised iPhone 17 prices by $100 and raised some MacBook prices, Ternus told Reuters. The new AI Siri is fielding 2.5 billion requests a day, he said.

The new foldable cannot meet demand

The iPhone Duo, Apple's first foldable phone, went on sale in October, after this quarter ended. Its sales will land in the December quarter. Ternus told Reuters the Duo is supply-constrained and Apple cannot meet demand.

“Duo is constrained as of today,” Ternus told Reuters. “We're not able to predict when supply and demand will be in balance.” A very small percentage of Duo units were returned for display issues, he said, and Apple is replacing them.

A record full year

For the full fiscal year, revenue reached $478.83 billion, about $479 billion, an all-time record. The company generated $28 billion in operating cash flow in the quarter. It returned $28 billion to shareholders in the same period.

The board declared a dividend of $0.27 per share. It is payable on November 16 to shareholders of record on November 12. Shares dropped 4 percent in after-hours trading after the outlook, Barron's reported on Monday. That is a timed post-guidance snapshot, not a closing price.

The holiday outlook: a record quarter, a slower guide

On the earnings call, Apple guided December-quarter revenue growth to 7 percent to 10 percent from a year earlier. Analysts had anticipated 5.9 percent growth, according to estimates compiled by FactSet and reported by MarketWatch. Chief financial officer Kevan Parekh said, “we expect this to be the best quarter for revenue in the history of the company.”

Services growth was guided to 8 percent to 9 percent for the December quarter. That fell short of the 10 percent analysts were expecting, MarketWatch reported. The guide implies a record holiday quarter, but at a pace below September's 12 percent growth.

What remains unknown

What remains unknown starts with when Duo supply and demand will balance. Management has given no timeline, and Duo sales land in the December quarter. How much the constraint caps holiday revenue is still unstated. How holiday demand in China develops is also untested.

How long higher memory costs pressure margins is unquantified beyond the December guide. The release gives no Duo build count before the holidays. It gives no return rate beyond the company's description of display issues. Readers should treat the guidance as expectation, not a reported result.

What to watch next

What to watch next is whether Duo supply loosens before the holidays end. Delivery waits for the Duo are the visible demand test. December iPhone mix, led by the Duo and the 18 Pro line, decides where in the range revenue lands.

Watch also whether Services growth lands inside the guided 8 percent to 9 percent range. Services are now more than a quarter of revenue at a record level. A result below the range would change the mix story behind the beat.