Apple’s revenue exceeds forecasts thanks to the iPhone. Shares trade weakly in after-hours trading
The Cupertino-based company reported a turnover of $114.5 billion, up 12 per cent year-on-year. Profits were solid
Apart from Nvidia, whose results are due later, all eyes were on the latest quarterly results from the big tech firms. Namely: Apple. These were the results for the fourth quarter of the 2025–2026 financial year.
Well then: the company with the bitten apple logo has exceeded Wall Street’s forecasts for both revenue and profits. In the fourth fiscal quarter, which ended on 26 September 2026, the Cupertino-based group recorded revenue of $114.5 billion, up 12 per cent year-on-year (the LSEG consensus forecast had been $113.39 billion). Diluted earnings per share, meanwhile, rose by 14% to $2.10, exceeding the market’s forecast of $1.99.
The gross margin stood at 47.9 per cent, boosted by approximately one percentage point from refunds on tariffs, which also contributed 5 cents to earnings per share. The quarter saw new September highs for iPhone sales and services, whilst the full financial year closed with record revenue of $479 billion and double-digit growth in earnings per share. The gross margin, an indicator closely monitored by investors, also stood at 47.9 per cent, slightly above analysts’ forecasts. However, growth in Apple’s services division, characterised by high profit margins, continues to slow. In after-hours trading, the share price reacted weakly to the published figures.
“We have just completed our best financial year ever,” said the new CEO, John Ternus, who took over from Tim Cook last September, emphasising the importance of the new product range: from the Duo foldable iPhone to the iPhone 18 Pro and Pro Max, right through to the new AI-powered Siri.
Chief Financial Officer Kevan Parekh also highlighted the 28 billion in cash generated from operating activities during the quarter, which was entirely offset by capital returns to shareholders of the same amount. The board of directors has also approved a dividend of $0.27 per share, payable on 16 November.
