Apple Revenue Jumps 12% to $114.5 Billion in First Results Led by Ternus
Key Facts
Apple reported revenue of $114.477 billion for the fiscal fourth quarter ended September 26, 2026, up 12% from a year earlier, in the first quarterly results led by John Ternus as chief executive. Net income was $30.711 billion, compared with $27.466 billion a year earlier, while diluted earnings per share rose to $2.10 from $1.85. Revenue and net income topped estimates ahead of the results, with LSEG data cited by Reuters showing forecasts of $113.39 billion in revenue and $29.04 billion in net profit. Apple described fiscal 2026 as the best year in its history, with annual sales of $478.834 billion and net income of $132.175 billion. The results provide Ternus’s first financial test against a backdrop of strong annual growth, as investors watch what the next quarter brings after the leadership transition.
Annual sales rose from $416.161 billion in fiscal 2025 to $478.834 billion in fiscal 2026, while net income increased from $112.010 billion to $132.175 billion. Ternus said the company delivered “a September quarter revenue record of $114.5 billion, up 12% from a year ago,” adding that iPhone posted record revenue for the quarter and services reached an all-time high. For the quarter, gross margin was 47.9%, including a positive contribution of about one percentage point from tariff refunds. The refunds added $0.05 to diluted earnings per share of $2.10, according to the company’s statement. This contribution highlights part of the support that boosted margins and profitability, alongside revenue growth from a year earlier.
iPhone led revenue growth among product categories, with sales of $57.583 billion, compared with $49.025 billion a year earlier. Services revenue rose to $31.573 billion from $28.750 billion, setting a record, while Mac revenue climbed to $10.792 billion from $8.726 billion. In Greater China, revenue was $17.539 billion, compared with $14.493 billion in the same period a year earlier. By contrast, iPad revenue fell to $6.229 billion from $6.952 billion, and revenue from wearables, home and accessories declined to $8.300 billion from $9.013 billion. The figures show diverging performance across product lines, with growth in phones, services, Mac and Greater China offset by declines in the other two categories.
Ternus took over as chief executive on September 1, 2026, after Apple announced on April 20 that Tim Cook would become executive chairman. Ternus said the company was closing out the year with “our most ambitious lineup yet,” naming iPhone Duo, iPhone 18 Pro and iPhone 18 Pro Max, along with new home devices, Touch on Mac and a new Siri. The fiscal fourth quarter included just nine days of iPhone 18 Pro sales, according to Reuters, while iPhone Duo launched on October 23, putting its sales in the holiday quarter. Ahead of the results, Reuters identified memory chip costs, the outlook for the next quarter and Ternus’s comments on artificial intelligence and a revamped Siri among the issues investors were watching. Analysts expected rising memory costs to make quarterly profit growth the weakest in six quarters, according to a Reuters report.
Apple generated $28 billion in operating cash flow during the quarter and returned the same amount to shareholders. For the full fiscal year, cash generated from operating activities was $145.097 billion, compared with $111.482 billion the previous year, while share buybacks totaled $86.390 billion, compared with $90.711 billion. The board declared a cash dividend of $0.27 per share, payable on November 16 to shareholders of record at the close of November 12. Apple scheduled the start of the live earnings call for 2:00 p.m. Pacific time on November 2. The company’s shares closed at $338.32 that day, according to EL7 data.