Apple Q4 revenue rises 12% to $114.5 billion on record iPhone sales

What Apple reported for the September quarter

Apple Inc. (Nasdaq: AAPL) said on Nov. 2, 2026 that revenue for its fiscal fourth quarter, which ended Sept. 26, was $114.5 billion, up 12% from $102.5 billion a year earlier. Net income was $30.7 billion, up 12% from $27.5 billion, and diluted earnings per share were $2.10, up 14% from $1.85. Growth rates in this article are calculated from the figures in the company's filing.^[1]

Gross margin was 47.9%, against 47.2% a year earlier. Apple said tariff refunds added about 1 percentage point to that margin and $0.05 to earnings per share. Operating income rose 10% to $35.6 billion, while operating expenses grew 21% to $19.2 billion, driven by research and development spending of $11.7 billion, up 32%.^[1]

For the full fiscal year, revenue was $478.8 billion, up 15% from $416.2 billion, and net income was $132.2 billion. Apple generated $28 billion in operating cash flow in the quarter and returned $28 billion to shareholders, Chief Financial Officer Kevan Parekh said in the release. The board declared a dividend of $0.27 per share, payable Nov. 16 to holders of record on Nov. 12.^[1]

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Revenue by product and region

iPhone revenue was $57.6 billion, up 17% from $49.0 billion, a September-quarter record. Mac revenue rose 24% to $10.8 billion. Services revenue rose 10% to $31.6 billion, an all-time high, and was $123.3 billion for the year. Chief Executive John Ternus, on his first earnings call in the role, said Apple has never sold more Macs in a fiscal year than in 2026, according to MacRumors.^[1][2]

iPad revenue fell 10% to $6.2 billion and Wearables, Home and Accessories fell 8% to $8.3 billion. Apple attributed the iPad decline to supply constraints and a difficult comparison with last year's launch, MacRumors reported.^[1][2]

By region, Greater China revenue rose 21% to $17.5 billion, a quarterly record per MacRumors, while Americas grew 10% to $48.7 billion and Europe 12% to $32.0 billion. Japan was the only segment to decline, slipping 1% to $6.5 billion.^[1][2]

Inventories rose to $14.5 billion from $5.7 billion a year earlier, according to the balance sheet in the filing. Chief Operating Officer Sabih Khan said iPhone, iPad and Mac were supply constrained in the quarter by demand and limited availability of advanced-node chips, and that constraints are easing as more of the lineup moves to 2-nanometer parts, MacRumors reported.^[1][2]

Why Apple expects lower margin in the December quarter

Apple guided December-quarter revenue growth of 7% to 10% year over year, which it said would make it the company's best quarter for revenue, and Services growth of 8% to 9%. It guided gross margin to 45% to 46%, below the 47.9% reported for the September quarter, citing higher memory costs and costs tied to the ramp of Siri AI, MacRumors reported.^[2]

Ternus called the memory situation "unprecedented" and said Apple expects higher memory costs in the December quarter. Apple raised prices in June and September, which offset part of the increase, and expects memory prices to keep rising after December, MacRumors reported. The company also expects Mac and iPad supply constraints in the December quarter, mainly because of memory, as demand has run above expectations.^[2]

Ternus told Reuters after the release that Apple cannot yet meet demand for the iPhone Duo and said a "very small percentage" of units had been returned over display issues, per MacRumors. Parekh said Apple carries inference costs on the server side of its AI features, and Ternus repeated plans to set usage limits on server-based AI features such as Siri AI, with paid options for more capacity.^[2]

What happens next

Apple will pay its $0.27 per share dividend on Nov. 16 to holders of record on Nov. 12. Its guidance puts the December quarter at 7% to 10% revenue growth with gross margin of 45% to 46%, and the company will report those results in its next quarterly filing. Apple has not given a date in the sources reviewed for this article.^[1]