Apple Q4 2026 Earnings: Record Revenue Amid Supply Constraints
Apple reported a record $114.5 billion in Q4 2026 revenue, a 12% year-over-year increase, driven by strong iPhone and Services sales. Despite supply chain constraints and rising memory costs, the company posted $30.7 billion in net profit. CEO John Ternus, who took office in September, forecasted the upcoming December quarter as the company's biggest ever, citing high demand for new hardware including the iPhone Duo.
Key points
- Apple, led by newly appointed CEO John Ternus, reported Q4 2026 revenue of $114.5 billion, a 12% year-over-year increase, marking a September quarter record.
- Net profit reached $30.7 billion with earnings per share of $2.10, while gross margin stood at 47.9 percent, boosted by approximately one percentage point from tariff refunds.
- iPhone revenue hit a September quarter record at $57.58 billion, and Services revenue reached an all-time high of $31.57 billion, supporting the company's best fiscal year ever.
- Apple acknowledged supply constraints on iPhone, Mac, and iPad, as well as rising memory costs, which pressured profit margins despite stronger-than-expected demand.
- CFO Kevan Parekh forecasted the December quarter revenue to grow 7-10% year-over-year, projecting it to be the largest revenue quarter in company history.
Record-Breaking Financial Performance
Apple Inc. has released its financial results for the fourth fiscal quarter of 2026, reporting a total revenue of $114.5 billion. This figure represents a 12 percent increase compared to the same period last year, when the company posted $102.47 billion in revenue. The quarter, which ended on September 26, 2026, also saw Apple achieve a net profit of $30.71 billion, up from $27.47 billion in the prior year. Diluted earnings per share (EPS) rose to $2.10, a 14 percent year-over-year increase from $1.85. These results cap off what Apple described as its best fiscal year ever, with full-year sales reaching $478.8 billion and net income totaling $132.2 billion, both surpassing previous records set in fiscal 2025.
Product Lineup and Revenue Breakdown
The financial success was driven largely by strong performance across Apple’s core product categories. iPhone revenue reached a September quarter record of $57.58 billion. Services revenue, a high-margin segment, hit an all-time high of $31.57 billion. Mac revenue contributed $10.79 billion, while iPad sales generated $6.23 billion. Wearables, Home, and Accessories brought in $8.30 billion. The company highlighted the launch of the iPhone Duo, described by CEO John Ternus as the most transformational iPhone since the original, alongside the iPhone 18 Pro and iPhone 18 Pro Max. Additionally, Apple introduced new home hardware and brought touch functionality to Macs for the first time, alongside an updated Siri AI system.
Leadership Transition and Strategic Outlook
The quarter marked a significant leadership change for the technology giant. Tim Cook stepped down as CEO, and John Ternus assumed the role on September 1, 2026. In his first earnings report as CEO, Ternus expressed pride in the company's performance, noting that the ambitious product lineup would carry Apple into the holiday season. Ternus stated, "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."
Supply Chain Challenges and Margin Pressures
Despite the strong top-line growth, Apple faced operational headwinds. During the earnings call, CFO Kevan Parekh acknowledged that higher memory costs were putting pressure on profit margins. The company also reported limited supply-chain flexibility and stronger-than-expected demand for Mac and iPad. Notably, there were ongoing shortages of the new iPhone Duo. Gross margin for the quarter was 47.9 percent, compared to 47.2 percent in the year-ago period. This improvement included a favorable impact of approximately one percentage point from tariff refunds, which also contributed $0.05 to EPS. Without these refunds, the underlying margin performance would have been lower.
Forecast for December Quarter
Looking ahead, Apple provided guidance for its December quarter, which includes the critical holiday shopping season. The company expects total company revenue to grow between 7 and 10 percent year-over-year. Based on this forecast, Apple anticipates revenue between $153.82 billion and $158.13 billion, which would make it the best revenue quarter in the company's history. This projection reflects Apple's best view of constrained supply. The company also declared a quarterly dividend payment of $0.27 per share, payable on November 16 to shareholders of record as of November 12.
Key takeaways
- Apple reported Q4 2026 revenue of $114.5 billion, a 12% year-over-year increase, setting a September quarter record.
- Net profit reached $30.7 billion, with EPS of $2.10, supported by record iPhone and Services sales.
- CEO John Ternus, who took office in September, highlighted the success of new products like the iPhone Duo and Touch Macs.
- Supply constraints and rising memory costs pressured margins, though tariff refunds provided a slight boost.
- Apple forecasts its December quarter to be the largest in company history, with revenue expected between $153.82 billion and $158.13 billion.
Sources
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