Apple reported record September-quarter revenue of $114.5 billion for its fiscal fourth quarter of 2026, up 12% from a year earlier. iPhone revenue jumped 17%, while Mac and Services revenue also increased. However, Apple expects a lower gross profit margin during the December holiday quarter because of rising memory chip prices and the costs of expanding Siri AI.
Apple announced its fiscal fourth-quarter results on November 2, 2026, covering the three-month period that ended on September 26. Apple generated $114.5 billion in quarterly revenue, an increase of 12% compared with the same period last year. This marked the company’s highest revenue ever recorded for a September quarter. The announcement was also the company’s first earnings report under CEO John Ternus. Before the results were released, TechBonafide examined Apple’s first earnings test under CEO John Ternus, including the potential impact of rising memory costs.
Apple’s iPhone business was a major contributor to the strong quarter. iPhone revenue reached $57.58 billion, up approximately 17% from the same period in 2025. This increase represents revenue growth rather than a confirmed 17% rise in the number of iPhones sold. Apple reported strong demand from customers upgrading their devices in several major markets. The iPhone 18 Pro models were available for only the final days of the reporting quarter.
Apple’s Mac business also recorded strong growth during the September quarter. Mac revenue rose approximately 24% to $10.79 billion, supported by demand for products such as the MacBook Neo and MacBook Pro. The company achieved this growth despite supply constraints affecting some devices. Apple introduced new M6-powered Mac models in late October, after the reporting quarter ended, meaning those launches did not contribute to the September-quarter revenue figures.
Another important part of Apple’s business is its growing services division. Services revenue reached an all-time high of $31.57 billion, increasing approximately 10% compared with the same quarter last year. This business includes subscriptions and services such as Apple Music, Apple TV, iCloud, and the App Store. The results show how Apple’s digital ecosystem continues to generate revenue alongside its hardware products.
According to Apple’s consolidated financial statements, not every product category recorded growth during the September quarter. iPad revenue fell approximately 10% to $6.23 billion, partly reflecting supply constraints and a difficult comparison with the previous year’s iPad launch. Revenue from Wearables, Home and Accessories declined approximately 8% to $8.30 billion. Apple said the wearables category faced a challenging comparison with product launches from the previous year. These results show that weaker category revenue does not always mean customer demand has fallen.
Despite the strong overall performance, Apple is facing challenges from increasing memory chip prices amid a broader AI-driven RAM shortage affecting smartphones and PCs. Memory chips are essential components used in smartphones, computers, and other electronic devices. Higher prices for these components can increase manufacturing costs and reduce the amount of profit a company earns from each product.
Apple expects its gross profit margin to be between 45% and 46% in the December 2026 quarter, compared with 47.9% in the September quarter. However, the September figure included a favorable impact of approximately one percentage point from tariff refunds. Apple said rising memory chip prices and costs associated with expanding Siri AI are important reasons for the lower margin outlook. Despite these pressures, the company forecasts revenue growth of 7% to 10% for the December quarter compared with the same period last year.
Apple has also introduced the foldable iPhone Duo, touchscreen MacBook Pro models, and M6-powered Macs ahead of the holiday shopping season. The iPhone Duo went on sale on October 23, after the September reporting quarter ended, so its sales were not included in these financial results. Apple also announced new touchscreen MacBook Pro models and M6-powered Macs in late October, with retail availability planned for November 6. These launches could support Apple’s holiday-quarter performance, but their sales were not part of the reported September-quarter revenue.
Artificial intelligence remains an important part of Apple’s strategy. Apple launched Siri AI in beta for U.S. English users in September 2026 and expanded its language availability in October. The assistant is designed to understand information on a user’s screen, respond to more complex requests, and help with everyday tasks across supported apps. Apple is also investing in the development and rollout of these features, creating additional costs as competition in AI-powered devices continues to grow. For background on the company’s wider AI strategy, TechBonafide previously examined Apple’s Google Gemini partnership for Siri.
For the full fiscal year 2026, Apple generated approximately $478.83 billion in revenue, setting a new annual record, while net income reached approximately $132.18 billion. During the September quarter alone, Apple earned $30.71 billion in net income. Quarterly diluted earnings per share rose 14% to $2.10, including a favorable impact of $0.05 per share from tariff refunds. These figures highlight Apple’s strong financial performance while showing that one-time benefits also contributed to the reported earnings.
Apple’s latest earnings show that iPhone sales revenue, Mac computers, and digital services remain important sources of growth. The company is entering the holiday shopping season with several newly launched products and a stronger focus on artificial intelligence. However, rising memory chip costs and spending on Siri AI could put pressure on profit margins. The next financial results will show whether demand for Apple’s new devices can support continued revenue growth while the company manages these expenses.
