Apple Reports $114.5 Billion Revenue in Q4 2026 Under Ternus
In his inaugural earnings report, Apple CEO John Ternus reveals a 12% revenue increase, but warns of rising costs and supply constraints ahead.
Apple's Q4 2026 revenue reached $114.5 billion, surpassing analysts' expectations.
iPhone sales hit a record without the standard iPhone 18, while Mac revenue soared 24%.
Rising memory costs are expected to impact gross margins in the upcoming quarter.
Apple's revenue for the fourth quarter of fiscal 2026 reached an impressive $114.5 billion, marking a 12% increase compared to the previous year and exceeding analysts' predictions of $113.4 billion. This report, which serves as John Ternus' first earnings call since taking over as CEO on September 1, also revealed a 14% rise in earnings per share, reaching $2.10. Despite this positive performance, concerns arose regarding the upcoming December quarter, where rising memory chip prices are expected to affect profit margins.
The company closed fiscal 2026 with record revenue totaling $478.8 billion, a 15% increase from the previous year, and earnings per share of $8.98. iPhone sales were particularly noteworthy, generating $57.58 billion, a 17% increase and about $1 billion above estimates. This surge occurred without the introduction of a standard iPhone 18, as only the iPhone 18 Pro and Pro Max were released. Ternus was questioned about the absence of the standard model but refrained from providing details about future product roadmaps.
Apple also reported record numbers for iPhone upgrades in key markets, including the U.S., China, and India. The company’s first foldable device, the iPhone Duo, launched in October and sold out quickly, with delivery dates extending into the next year. COO Sabih Khan noted that supply constraints are currently impacting the Duo's availability, making it difficult to predict when demand will be met. Ternus mentioned that a small percentage of units had returned due to display issues, but Apple is addressing these concerns through replacements.
In terms of services, Apple achieved a record revenue of $31.57 billion, a 10% increase. However, the company anticipates a slowdown in services growth to 8-9% in the December quarter, which is below analysts' expectations. Factors contributing to this outlook include currency fluctuations and challenges in mobile gaming. Meanwhile, Mac revenue surged by 24% to $10.79 billion, marking the best year for Mac sales in the company's history, driven by the popularity of the MacBook Neo and Pro models.
Looking ahead, Apple expects the December quarter to be its largest yet, projecting revenue growth of 7-10%. However, the company faces challenges with rising memory costs and tight supply for Mac, iPad, and iPhone Duo models. Ternus' leadership will be tested as Apple navigates these hurdles while aiming to maintain its growth trajectory in a competitive market.
