Apple beats Q4 earnings in John Ternus's first quarter
Apple reported record $114.5B revenue in Q4, beating expectations under new CEO John Ternus. iPhone and Services led growth, while iPad and China sales showed mixed results.
Based on reporting by Thomas Richmond (24/7 Wall St.), Joe Rossignol (MacRumors) and Imran Hussain (iThinkDifferent).
Apple beats expectations in John Ternus's first quarter as CEO
Apple Inc. reported record revenue for its fiscal fourth quarter on Monday, November 2, 2026, marking the first earnings report under new CEO John Ternus. The company posted $114.5 billion in revenue, a 12% increase from the same period last year, which exceeded its own guidance of 9% to 11% growth. This performance caps off what Apple described as its best fiscal year ever, with total annual revenue reaching a record $479 billion.
Despite the strong top-line growth, investors reacted cautiously. Apple shares, which had been trading near all-time highs, fell approximately 1% in after-hours trading. The modest decline suggests that while the numbers beat Wall Street consensus, the market remains focused on underlying cost pressures and future growth drivers.
Key financial results and product performance
The September quarter, which ended on September 26, 2026, saw significant growth in several key areas, though not all categories performed equally. The iPhone segment drove much of the revenue, growing 17.5% to reach a September quarter record. This growth exceeded the mid-teens increase Apple had guided for the device.
iPhone: Revenue reached $57.58 billion, up 17.5% year-over-year.
Services: Reached an all-time high, contributing to the overall revenue record.
Mac: Revenue rose 23.7%, a notable increase despite third-party trackers reporting that Mac shipments fell by approximately 11% in the third calendar quarter.
iPad and Wearables: These categories missed expectations, with Wearables, Home, and Accessories also showing weaker performance compared to other segments.
Gross margin came in at 47.9%, up from 47.2% a year earlier. However, this figure included approximately one percentage point in benefits from tariff refunds. Without these refunds, the gross margin would have been around 46.9%, a detail that analysts noted makes the underlying beat thinner than the headline numbers suggest.
Why the China and iPad misses matter
While Greater China was the fastest-growing region for Apple, with revenue up 21% to $17.5 billion, the broader context in the Chinese smartphone market remains challenging. According to IDC, China’s overall smartphone shipments fell 15.4% in the third calendar quarter. Apple’s market share in China rose to 17.8%, indicating that the company is gaining ground even in a shrinking market.
The miss in iPad sales is particularly notable because it contrasts with the strong performance of the Mac category. While Mac revenue surged 23.7%, iPad revenue did not meet expectations. This divergence suggests that consumer demand may be shifting toward higher-priced Mac devices or that the iPad lineup is facing specific competitive pressures. Investors are watching to see if the upcoming holiday season will reverse these trends.
What this means for investors and consumers
For investors, the key takeaway is that Apple’s valuation, which sits near a $4.9 trillion market cap, is being tested by rising component costs and memory shortages. The global smartphone market experienced its worst third quarter since 2013 due to these shortages, yet Apple managed to grow its iPhone revenue significantly. This resilience is a positive sign, but the reliance on tariff refunds to boost margins is a potential risk for future quarters.
For consumers, the results signal that Apple is continuing to invest heavily in new hardware. The company introduced the iPhone Duo, iPhone 18 Pro, and iPhone 18 Pro Max during this period. However, the iPhone Duo did not contribute to this quarter’s revenue as pre-orders began in October. The first sales of the iPhone Duo are expected in the December quarter, which will be the first report to show demand for this new device. Additionally, Apple raised prices across its lineup on June 25, 2026, meaning the entire quarter benefited from higher pricing on Macs and iPads.
What happens next
The next earnings report, covering the December quarter, will be critical for assessing the success of the new iPhone lineup. Analysts are particularly focused on the performance of the iPhone Duo and the revamped Siri AI features. With the holiday season approaching, Apple’s ability to drive demand for its new hardware will determine whether the company can maintain its growth momentum. Investors will also be watching for updates on component costs and whether Apple can sustain its gross margins without the benefit of tariff refunds.
As noted in our guide to reading earnings reports, understanding the difference between headline revenue and underlying margin trends is essential for evaluating a company’s true health. Apple’s results this quarter highlight the importance of looking beyond the top line to assess long-term sustainability.
Klarna integrates its buy‑now‑pay‑later service into Fresha’s booking platform, letting salons and spas offer interest‑free installments and potentially boosting conversion and revenue.
A $6.3 bn theft at Binance led to a $3.6 bn net outflow as customers withdrew funds, while scammers flooded the internet with fake compensation offers.
Ryanair’s CEO predicts up to a 20% rise in fares next year as fuel costs soar, citing a $2.2 billion jump in the 2027 fuel bill and a new cost‑review plan.
Rising employer health‑insurance contributions, now up 6.4% annually, are slowing wage gains and pushing workers to shoulder larger premium shares, analysts say.
A new wave of Gen Z buyers favor affordable sedans over SUVs, prompting Ford and GM to explore bringing back sedan models to capture the shifting market.
