Based on reporting by Jesse Hollington (iDrop News).
Apple posts record $114.5B quarter under new CEO
Apple reported its fourth-quarter fiscal 2026 results on Monday, November 2, marking the first earnings call led by Chief Executive Officer John Ternus. The company announced a September-quarter revenue record of $114.5 billion, an increase of 12 percent from the same period last year. This performance capped off Apple's best fiscal year ever, with total annual revenue reaching $478.8 billion.
According to Apple, the strong results were driven by record sales in the iPhone and Services categories. CEO John Ternus stated that the company is closing the year with its most ambitious product lineup yet, including the iPhone Duo, iPhone 18 Pro, and new Mac hardware. The company posted a net quarterly profit of $30.7 billion, with earnings per share of $2.10, which exceeded analyst estimates of $1.99.
What drove the revenue surge
iPhone sales were the primary engine of growth, reaching $57.58 billion in the quarter, a figure that crossed the $50 billion mark for the first time in a fourth quarter. This growth was driven by the iPhone 17 lineup during the summer and the early sales of the iPhone 18 Pro and iPhone 18 Pro Max. Notably, the standard iPhone 18 and the foldable iPhone Duo were not included in these figures, as they launched in October and spring, respectively.
Mac sales also saw significant momentum, breaking the $10 billion threshold for the first time with 12.7 percent growth. Analysts noted that demand for the Mac mini and Mac Studio, which are popular with AI companies, contributed to this increase. Meanwhile, the Services division reached an all-time high, surpassing $30 billion in quarterly revenue, though its 9.8 percent growth rate suggests a slight slowdown compared to previous years.
Revenue: $114.48 billion (up 12% year-over-year)
iPhone Sales: $57.58 billion (record for September quarter)
Mac Sales: Over $10 billion (first time)
Services Revenue: Over $30 billion (all-time high)
Net Profit: $30.7 billion
Why it matters for investors and consumers
For investors, the results confirm that Apple's strategy of staggering product launches is working to smooth out its traditional revenue cycle. However, the stock fell 4 percent during the conference call before paring losses to a 2 percent decline, reflecting concerns about future margins. Apple warned that rising memory chip costs will pressure gross margins in the upcoming holiday quarter, forecasting a drop to 45-46 percent from 47.9 percent in the current quarter.
For consumers, the news highlights a shift in Apple's product availability. The company is spacing out iPhone releases, with Pro and Duo models shipping this year and other models expected next year. This strategy aims to maintain steady demand throughout the year rather than relying solely on the holiday season. Additionally, Apple raised prices for the iPhone 17 by $100 and increased some MacBook prices to offset rising component costs.
Challenges with the iPhone Duo
While the iPhone Duo has been a commercial hit, selling out within hours of its online launch, it has faced technical hurdles. Customer reports have emerged regarding cracked screens on the device. In an interview with Reuters, CEO John Ternus acknowledged that a "very small percentage" of units had been returned for display issues and that Apple is replacing them. He stated that the company is currently unable to meet demand and cannot predict when supply and demand will be in balance.
"Duo is constrained as of today," Ternus said. "The ramp is going well ... but at this point, we're not able to predict when supply and demand will be in balance."
What happens next
Analysts are watching how Apple manages the AI-driven spike in memory chip prices. Bob O'Donnell, chief analyst at TECHnalysis Research, noted that the key question is how well Apple can weather these component price increases that have affected its competitors. Apple's Chief Operating Officer, Sabih Khan, who joined the earnings call for the first time, said the company is working closely with memory suppliers and increased its purchasing commitments by $33 billion during the quarter. Investors will look to the next earnings report to see if Apple can maintain its margin structure despite these rising costs.
The Dow Jones Industrial Average climbed on Tuesday while AI‑related shares steadied, boosted by falling oil prices and optimism over a possible US‑Iran peace deal.
US midterm elections may change the nearly $600 billion municipal bond market, with tax reforms and new bond issuances driving yields and investor demand.
A recent analysis projects that $5,000 invested in Vanguard’s Information Technology ETF today could reach about $8,000 by 2030, assuming a 12% annual price rise. The estimate highlights the fund’s heavy chip exposure and earnings growth expectations.
