Why it matters
- Apple's revenue rose 12% to $114.5 billion in the quarter ended Sept. 26, and diluted EPS rose 14% to $2.10, Apple said. LSEG's consensus was $113.39 billion and $1.99, CNBC reported.
- iPhone revenue jumped 17% to a September-quarter record of $57.58 billion, ahead of the $56.54 billion LSEG estimate. Services rose about 10% to a record $31.57 billion.
- Apple forecast December-quarter revenue growth of 7% to 10%, above LSEG's 6.1% estimate, but guided gross margin to 45% to 46%, below the 46.3% estimate, citing higher memory costs. The shares fell about 4% before the bell on Tuesday.
Updated Nov. 3 with Apple's December-quarter outlook from Monday's conference call and Tuesday's premarket trading.
Apple reported fiscal fourth-quarter revenue of $114.5 billion on Monday, Nov. 2, up 12% from a year earlier and a September-quarter record, as iPhone sales hit a record for the period. Diluted earnings per share rose 14% to $2.10, the company said in its earnings release. Both beat Wall Street's estimates, according to LSEG consensus figures reported by CNBC.
It was John Ternus' first quarterly report as Apple's chief executive, CNBC reported. "Today, Apple is proud to report a September quarter revenue record of $114.5 billion," Ternus said in the release.
Apple Q4 2026 results vs. estimates
| Item | Fiscal Q4 2026 | Year earlier | LSEG estimate |
|---|---|---|---|
| Revenue | $114.48 billion | $102.47 billion | $113.39 billion |
| Diluted EPS | $2.10 | $1.85 | $1.99 |
| iPhone | $57.58 billion | $49.03 billion | $56.54 billion |
| Mac | $10.79 billion | $8.73 billion | $9.61 billion |
| iPad | $6.23 billion | $6.95 billion | $6.70 billion |
| Services | $31.57 billion | $28.75 billion | n/a |
Sources: Apple's earnings release, filed with the SEC on Form 8-K; estimates are LSEG figures reported by CNBC.
Services revenue grew about 9.8% to an all-time high, but it was the segment's slowest growth since 2022, CNBC said. Mac sales rose about 24%. iPad sales fell about 10% and missed estimates. Wearables, Home and Accessories fell about 8% to $8.30 billion. Sales in Greater China rose 21% to $17.54 billion.
Gross margin was 47.9%, which Apple said included a benefit of about 1 percentage point from tariff refunds. The refunds also added 5 cents to EPS. Net income rose 12% to $30.71 billion.
For the full fiscal year, Apple said revenue reached a record $479 billion, up 15% from $416.2 billion in fiscal 2025. Apple declared a dividend of 27 cents a share, payable Nov. 16 to holders of record on Nov. 12.
How did Apple stock react to earnings?
The shares fell after the outlook. Apple was little changed right after the release, near $338.10 at about 4:52 p.m. ET in Yahoo Finance data, versus the regular-session close of $338.32. It slid during the conference call, and CNBC reported the stock fell 3% in extended trading. Before the bell on Tuesday, Nov. 3, Apple traded near $323.99 at about 8:53 a.m. ET, down about 4.2% from Monday's close, Yahoo Finance data show. The stock had fallen 1.8% on Monday from Friday's $344.63.
What did Apple say about the December quarter?
Apple expects December-quarter revenue to grow 7% to 10% from a year earlier. "We expect this to be the best quarter for revenue in the history of the company," Chief Financial Officer Kevan Parekh said on the call, according to a transcript published by The Motley Fool. He said the range reflects Apple's best view of constrained supply.
The margin outlook was the weak spot. Parekh guided gross margin to 45% to 46%, below the fourth quarter's 47.9%. "This includes primarily the impact of higher memory costs as well as some costs related to the ramp of Siri AI," he said.
| December-quarter outlook | Apple guidance | LSEG estimate |
|---|---|---|
| Revenue growth | 7% to 10% | 6.1% |
| Gross margin | 45% to 46% | 46.3% |
| Services revenue growth | 8% to 9% | n/a |
| Operating expenses | $20.4 billion to $20.8 billion | n/a |
| Tax rate | About 17% | n/a |
Sources: Apple's guidance from the call transcript published by The Motley Fool; LSEG estimates reported by CNBC.
CNBC said the services forecast signals slowing growth. Chief Executive John Ternus told CNBC that Apple "saw higher memory costs as compared to the June quarter," and that it had "reluctantly" raised prices, according to the network.
The report caps a busy stretch of big tech earnings. Read our stories on Intel's plunge after a weak outlook and Amazon's third-quarter results, and follow more results in our companies section and markets coverage.
Sources
- Apple, Form 8-K and press release: Apple reports fourth quarter results (Nov. 2, 2026)
- CNBC, Apple's stock drops on weak margin forecast in Ternus' first earnings report (Nov. 2, 2026, updated 8:50 p.m. ET)
- The Motley Fool, Apple (AAPL) Q4 2026 earnings call transcript (Nov. 2, 2026)
- Yahoo Finance, Apple (AAPL) chart data, including after-hours and premarket trading
