Apple Beats Q4 Revenue Forecast on iPhone Sales; China Revenue Misses

Apple reported fiscal fourth-quarter revenue of $114.48 billion, exceeding Wall Street expectations of $113.46 billion, driven by strong iPhone and Mac sales. The company posted diluted earnings per share of $2.10 against analyst estimates of $2.00, marking the first earnings report under new CEO John Ternus, who assumed the role on September 1, 2026.

IPhone revenue reached $57.58 billion, up 17.5% year-over-year and surpassing the $56.48 billion estimate. Mac revenue jumped 23.7% to $10.79 billion, well above the projected $9.69 billion. Services revenue hit a new all-time high of $31.57 billion, nearly matching the $31.58 billion forecast. However, iPad revenue declined 10.4% to $6.23 billion, and wearables revenue fell 7.9% to $8.3 billion. Greater China revenue came in at $17.54 billion, below the $18.75 billion estimate, though the region showed 21% year-over-year growth and contributed strong iPhone and Mac sales.

Apple attributed supply constraints to higher-than-anticipated demand and elevated memory costs stemming from broader artificial intelligence infrastructure buildout. The company increased purchase obligations by $33 billion from the June quarter to the September quarter to address memory supply. CEO Ternus characterized current memory pricing as "unprecedented" and indicated continued cost pressures expected into the December quarter. The company anticipates supply constraints for Mac and iPad in the December quarter, with total revenue guidance of 7–10% growth and gross margin of 45–46%.

For fiscal 2026, Apple reported record revenue of $478.83 billion, up 15.1% year-over-year, and net income of $132.18 billion, up 18%. The company generated $28 billion in operating cash flow during the quarter and returned $28 billion to shareholders. The board declared a $0.27 dividend per share, payable November 16, 2026. Installed base of active devices reached new all-time highs across all major product categories and geographic segments.