Apple reported revenue of $114.5 billion for the fiscal fourth quarter ended September 26, a 12% increase from the same period a year earlier and a record for the quarter. Net income rose by about 12% to $30.7 billion. The results, released Monday, November 2, exceeded Wall Street expectations.
Diluted earnings per share increased 14% year over year to $2.10. Gross margin was 47.9%, including an estimated one-percentage-point benefit from tariff reimbursements. Apple said iPhone 18 Pro demand helped drive the quarter, while its services business recorded its highest revenue to date.
Revenue from iPhones rose 17% to $57.6 billion, ahead of analysts’ estimate of about $56.5 billion. Services revenue, which includes the App Store, Apple Music and iCloud, increased approximately 10% to $31.6 billion. Mac sales grew about 24% to $10.8 billion.
Other product categories declined. iPad revenue fell approximately 10% to $6.2 billion, while Wearables, Home and Accessories revenue dropped around 8% to $8.3 billion.
The quarter was the first financial results report under CEO John Ternus, who took over from Tim Cook in September. Ternus said higher prices for some products had partly offset rising component costs, particularly for memory chips. Apple’s gross margin came in above the 47.5% analysts had projected, according to LSEG.
For the full fiscal year, Apple reported revenue of $478.8 billion, up 15%, and net income of $132.2 billion, an increase of about 18%. Diluted earnings per share rose approximately 20% to $8.98. Operating cash flow for the fourth quarter was $28 billion, which Apple said it returned to shareholders through dividends and share repurchases. The board also declared a dividend of $0.27 per share, payable November 16.
Sources: Olhar Digital.