Apple reported record revenues for fiscal 2026 of $478.8 billion on November 2, alongside record net income of $132.2 billion. iPhone and Mac sales powered the year’s finish, but the December-quarter outlook included a lower gross margin as component costs rose.
Key takeaways
Apple’s annual revenue rose 15%, while net income increased 18%.
Mac led quarterly divisional growth; Services reached an all-time sales high.
Tariff refunds added about one percentage point to quarterly gross margin.
Apple expects December-quarter revenue growth of 7% to 10%.
Apple’s record 2026 revenues beat quarterly expectations
Apple’s fourth-quarter revenue reached $114.5 billion , exceeding the $113.39 billion consensus compiled by LSEG. The quarter ended on September 26, 2026, with revenue up 12% from a year earlier.
Quarterly net income reached $30.71 billion. Earnings per share increased to $2.10 , compared with $1.85 a year earlier and forecasts of $1.99.
For the full fiscal year, revenue increased 15% from $416.2 billion in fiscal 2025, while net income climbed 18% from $112 billion. Apple’s record revenues in 2026 surpassed the previous annual high by more than $62 billion.
The report was John Ternus’s first quarterly presentation as CEO after he took the role in early September.
iPhone, Mac and Services drive growth
iPhone remained Apple’s largest revenue source, generating $57.58 billion in quarterly sales, up 17.5% year over year. That set a September-quarter record and exceeded analysts’ $56.54 billion forecast.
The iPhone 18 Pro and iPhone 18 Pro Max went on sale on September 18, contributing only nine days to the quarter.
Mac revenue rose 23.7% to $10.79 billion , the fastest percentage growth among Apple’s divisions and above expectations of $9.61 billion. Ternus attributed the performance to strong MacBook Neo and MacBook Pro sales.
Services set an all-time revenue record of $31.57 billion , rising 9.8%. That was nevertheless its slowest growth since 2022.
Other hardware categories declined. iPad revenue fell 10.4% to $6.23 billion, while Wearables, Home and Accessories dropped 7.9% to $8.3 billion. Both missed analyst expectations.
China led geographic growth at 21%. The rest of Asia-Pacific grew 15%, Europe 11.5% and the Americas 10.2%. Japan’s revenue declined 1.4%.
iPhone Duo demand exceeds supply
The iPhone Duo launched on October 23, 2026 , after the fiscal quarter closed, so its sales were excluded from these results. Revenue from Apple’s first foldable iPhone will enter the next quarterly report, covering the holiday season.
In an interview with Reuters, Ternus said Apple could not yet satisfy all demand for the device, although production was increasing.
In Apple’s earnings release, Ternus highlighted the Duo, iPhone 18 Pro models, new home hardware and the first touchscreen Macs as part of the company’s holiday lineup. He also said the redesigned Siri AI was handling about 2.5 billion requests daily.
Tariff refunds lift margins as memory costs rise
Apple’s quarterly gross margin increased to 47.9% from 47.2% a year earlier, helped by tariff refunds worth approximately one percentage point. Without that benefit, the margin would have been about 46.9%, slightly below the prior-year level.
The refunds also contributed roughly $0.05 to reported earnings per share. Earnings still exceeded analyst forecasts without that contribution.
Ternus said memory costs rose from the June quarter, partly because of demand for AI-focused components. Existing inventory, lower non-memory component costs and product price increases—including for the iPhone 17 and MacBook—partly offset the pressure.
December outlook and shareholder payments
Apple forecast December-quarter revenue growth of 7% to 10%, above the 6.1% expected by analysts polled by LSEG. CFO Kevan Parekh projected Services growth of 8% to 9% and a gross margin of 45% to 46%, below the September-quarter result.
Parekh said Apple generated $28 billion in quarterly operating cash flow and returned $28 billion to shareholders. Its active-device base reached a record across every major product category and geographic segment.
Apple forecast a $0.27-per-share dividend , payable on November 16, 2026, to shareholders holding shares at market close on November 12, 2026.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
