Apple last night published results for the fourth quarter of fiscal 2026, the first under CEO John Ternus. Revenue reached $114.5 billion, up 12% and above forecasts. iPhone revenue jumped 17% to $57.58 billion, a September-quarter record, even though the quarter included only eight days of iPhone 18 Pro sales.
A record year
For the full fiscal year Apple brought in $478.8 billion, up 15%, with record earnings of $8.98 per share. Services revenue, such as the App Store and iCloud, reached $31.6 billion in the quarter, up about 10%. Ternus said iPhone growth came despite supply constraints, and also addressed display problems with the foldable iPhone Duo, saying "a very small percentage" of units have been returned.
What sank the stock
Despite strong numbers, the stock fell about 3% after hours. The reason: Apple expects gross margin of 45% to 46% next quarter, below expectations, because of rising memory prices. It is the same memory chip shortage that brought record profits to Samsung and SK Hynix, and is now weighing on device makers.
And in China
Meanwhile, according to reports, Apple is expected to open developer testing in China of the first version of Apple Intelligence, based on Alibaba's Qwen model. The smarter Siri will not be included at this stage.
