AI-assisted research analysis by FutureKnowledge. Sources checked 3 November 2026. This is not investment advice.
Reviewed by FutureKnowledge: figures, dates and attributions were checked against the linked sources before publication.
Apple reported record September-quarter revenue of $114.5 billion on 2 November 2026, up 12% from a year earlier, but its shares slipped after hours because the company guided to a gross margin of 45% to 46% for the December quarter as memory chip costs keep climbing. It was the first results report under chief executive John Ternus, who took over from Tim Cook on 1 September.
Apple Q4 results: what the numbers show
According to Apple’s results release filed with the US SEC (also republished in full by Yahoo Finance), the fiscal fourth quarter ended 26 September 2026. Diluted earnings per share rose 14% to $2.10, and net income reached $30.7 billion. Apple said about one percentage point of the 47.9% gross margin and $0.05 of EPS came from tariff refunds.
| Line item (Sept quarter) | FY26 Q4 | FY25 Q4 | Change |
|---|---|---|---|
| Total revenue | $114.5bn | $102.5bn | +12% |
| iPhone | $57.6bn | $49.0bn | +17% |
| Services | $31.6bn | $28.8bn | +10% |
| Mac | $10.8bn | $8.7bn | +24% |
| iPad | $6.2bn | $7.0bn | -10% |
| Wearables, Home and Accessories | $8.3bn | $9.0bn | -8% |
| Greater China | $17.5bn | $14.5bn | +21% |
For the full fiscal year, revenue rose about 15% to roughly $479 billion and diluted EPS rose to $8.98 from $7.46. Apple returned $28 billion to shareholders in the quarter, matching its operating cash flow, and declared a dividend of $0.27 a share payable on 16 November to holders on record on 12 November.
Against expectations, the quarter was a beat. Yahoo Finance’s preview put the Bloomberg consensus at $2.00 EPS on about $113.5 billion of revenue, with iPhone sales expected near $56.5 billion. TheStreet also reported revenue of $114.48 billion against $113.47 billion expected. Services, at $31.57 billion, came in roughly in line with forecasts.
Why Apple shares fell despite the beat
The reaction was driven by the outlook, not the quarter. On the earnings call, chief financial officer Kevan Parekh guided for December-quarter revenue growth of 7% to 10% and Services growth of 8% to 9%, according to the call transcript published by Six Colors. He put gross margin at 45% to 46%, operating expenses at $20.4 billion to $20.8 billion and the tax rate at around 17%.
That margin range is below the 47.9% just reported. Parekh said the guidance mainly reflects higher memory costs, plus costs tied to the ramp-up of Siri AI. MacRumors reported that Ternus called the memory situation “unprecedented”, and that Apple expects memory prices to keep rising beyond the December quarter. Apple also expects memory shortages to limit Mac and iPad supply, and said it cannot yet meet demand for the new iPhone Duo.
Reports differ on the size of the share move. TheStreet and posts compiled on Digg described a decline of about 1% shortly after the release. PYMNTS reported a fall of about 4% after the call, once the margin guidance was out. Shares had already closed lower in Monday’s regular session as the Nasdaq fell 1.07%.
Greater China was the other mixed signal. Revenue there rose 21% to a September-quarter record, yet market posts collected on Digg put the consensus near $18.6 billion, which would make the $17.5 billion result a miss of about $1.1 billion. That estimate comes from secondary market commentary rather than a named data provider, so treat it with caution.
The memory squeeze and AI costs
Memory has been the main pressure on Apple’s margins all year. In July, Tom’s Hardware reported that Apple’s inventory had nearly doubled to $11.09 billion as it stockpiled components. The same tightness has lifted suppliers: FutureKnowledge covered SK hynix’s record Q3 profit on the AI memory boom. Apple raised Mac and iPad prices in June and iPhone prices in September, which partly offset the cost increases.
AI adds a second cost line. According to PYMNTS and MacRumors, Apple plans usage limits on Siri AI features that run on its servers, will offer paid expanded access later, and will book server inference costs in Services cost of sales. Apple has not disclosed pricing or a launch date for paid access.
What it means for India and businesses
Apple’s release does not break out India; it falls within the Rest of Asia Pacific segment, which grew about 15% to $9.7 billion. On the call, Apple executives cited all-time records in India for the September quarter, record Mac and Services revenue in India and other emerging markets, and a record year for iPhone upgraders in India, according to the Six Colors transcript. For Indian contract manufacturers, component makers and retail partners, management’s description of demand running ahead of supply matters most. If memory shortages persist, though, they could limit volumes whatever the demand.
For global businesses, Apple’s guidance shows that memory inflation is now hitting the largest consumer hardware brand, not just PC and phone makers with thinner margins.
Who is more or less exposed
- More exposed: device makers with thin margins and little pricing power, which face the same memory bill as Apple without its scale.
- Less exposed: memory producers, which benefit from higher contract prices, and services-heavy businesses with little hardware content.
- Mixed: assemblers and component suppliers, including those in India, where strong demand runs into supply constraints.
Scenarios to watch
These are conditional scenarios, not predictions.
| If… | Then a likely implication is… |
|---|---|
| Memory prices keep rising into 2027, as Apple expects | Further pressure on hardware margins and possibly more price increases |
| iPhone Duo and Mac supply catches up with demand | December-quarter revenue could land at the upper end of the 7%–10% range |
| Paid Siri AI access launches with meaningful uptake | A new Services revenue line that offsets inference costs |
| Greater China momentum fades after the launch quarter | Renewed investor focus on regional concentration risk |
What to watch next
- Apple’s 10-K annual filing, which will update the inventory and purchase-commitment figures.
- Memory contract-price data from industry trackers for the December quarter.
- Apple’s January results, the first test of the 45%–46% margin guidance.
- Whether other hardware makers report similar margin pressure. Earlier this season, Intel’s Q4 outlook missed estimates, and the Nasdaq had its worst month since March 2025 in October.
Bottom line
Apple closed its best fiscal year on record with a quarter that beat estimates on iPhone and Mac. But a gross margin guide of 45%–46%, below the 47.9% just reported, shows that memory costs and AI infrastructure are starting to squeeze profitability even at the most profitable hardware company. For now, demand is not the constraint; supply and cost are.
Method note
This analysis compared Apple’s SEC-filed results release (primary source) with reporting and call coverage from Yahoo Finance, TheStreet, MacRumors, PYMNTS, Six Colors, Tom’s Hardware and Digg. Share-move reports differed (about 1% versus about 4% after hours) depending on timing; both are noted. The Greater China consensus figure comes from secondary commentary and is flagged as such.