Overview
- Apple reported quarterly revenue of $114.5 billion and diluted EPS of $2.10 in its fiscal fourth quarter, setting September‑quarter and Services records and closing fiscal 2026 with roughly $479 billion in annual revenue; the board declared a $0.27 per share dividend.
- iPhone sales were the main driver with $57.58 billion in revenue, a September‑quarter record achieved without iPhone Duo sales, which began in October and are now constrained with some early units returned for display cracks that Apple says it is replacing.
- Company executives told investors that an AI‑driven surge in demand for flash memory has sharply raised component costs, prompting Apple to raise device prices and warning that memory will continue to pressure gross margins into the December quarter.
- Tariff refunds provided about a one percentage point boost to gross margin and roughly $0.05 of EPS in the quarter but were described as a one‑time benefit, and Apple guided to lower December‑quarter gross margins and more moderate Services growth.
- John Ternus’s first earnings cycle featured a staggered product launch strategy and new Siri AI features that lifted demand, and investors and analysts are now watching memory‑cost trends, Duo supply, and how Apple may monetize higher‑cost AI services through usage limits or iCloud+ tiers.