Apple posted $114.5 billion in revenue for its fourth fiscal quarter of 2026, up 12% from a year earlier and setting a record for the September quarter.
The results, discussed on Apple’s earnings call by CEO John Ternus and CFO Kevan Parekh, came after an unusual product cycle. The lineup included the folding iPhone Duo and iPhone 18 Pro/Max, but no traditional regular iPhone model. That makes the quarter a strong financial performance, but not a perfectly standard comparison with previous years.
The headline numbers
IPhone revenue reached $57.6 billion during the September quarter, up 17% from a year earlier. Services revenue climbed 10% to $31.6 billion, while Mac revenue rose 24% to $10.8 billion.
| Segment | Q4 2026 revenue | Year-over-year change | What stands out |
|---|---|---|---|
| iPhone | $57.6 billion | Up 17% | The largest revenue contributor and a key driver of the record |
| Services | $31.6 billion | Up 10% | Set an all-time high |
| Mac | $10.8 billion | Up 24% | Fastest growth among the segments highlighted |
| Wearables | $8.3 billion | Down 8% | Challenged by major launches in the prior year |
| iPad | $6.2 billion | Not provided | Revenue remained below the scale of iPhone, Services and Mac |
The services result was the most notable secondary highlight. Parekh attributed it to all-time records in video, cloud services, payment services and advertising, as well as a September-quarter record in Music.
Wearables moved in the opposite direction. Revenue fell 8%, which Parekh linked to a difficult comparison against the previous year’s Watch SE3 and AirPods Pro 3 launches. That explanation makes the decline less conclusive as a verdict on demand: this quarter faced unusually strong anniversaries.
Apple’s net income reached $30.7 billion.
The cost side of the record
Revenue records alone do not tell the whole story. Apple’s operating expenses rose 21% year over year to $19.2 billion as the company accelerated investments in research and development.
That matters because Apple’s cost base grew faster than its revenue. The spending may support future products, but it also raises the bar for sustaining its margins while the company navigates an unusual iPhone cycle.
Total gross margin stood at 47.9%, while the products gross margin was 37.2%. Tariff refunds contributed a one-percentage-point benefit to gross margin during the September quarter, meaning the underlying margin would have been lower without that benefit.
Apple ended the quarter with $137 billion in cash and marketable securities, compared with $80 billion in total debt. For the next quarter, the company expects an approximate tax rate of 17%.
The balance sheet provides substantial capacity, but the expense increase is the more revealing number. A record quarter still required heavier investment, particularly in research and development.
Apple’s installed base keeps expanding
Apple says it now has more than 2.5 billion active devices worldwide. The App Store averaged nearly one billion weekly visitors during the September quarter, also a record.
Those figures reinforce the strategic value of Apple’s ecosystem: a vast installed base creates opportunities to distribute new products and services across hardware, software and digital content. They do not, by themselves, establish how effectively every active device is monetized.
Siri reportedly handles more than 2.5 billion requests per day. Apple did not disclose how many were answered quickly, accurately or at all, so the request total should not be mistaken for a measure of assistant quality.
The company also pointed to large institutional deployments. The Department of Education in the Philippines plans to give 170,000 MacBook Neos to teachers and staff, while American Airlines is deploying 37,000 iPhone 17s to flight attendants for tap-to-pay purchases, alongside 25,000 iPads for pilots and mechanics.
Our analysis
The crucial detail is the mix. IPhone remained the engine, but Services and Mac supplied meaningful growth alongside it. Mac revenue increased 24%, outpacing the reported growth rates for iPhone and Services. Wearables was the clear laggard.
The caveat is that none of this provides a clean model-by-model roadmap. The unusual iPhone lineup changed the comparison base, and the earnings figures did not break out sales for individual devices. The 17% iPhone increase demonstrates strength in the reported period, but it does not establish how the folding iPhone Duo, iPhone 18 Pro/Max and skipped regular model contributed individually.
Services offers a different kind of signal. Its all-time-high revenue was supported by records across several categories, giving the growth more breadth than a single breakout service would. Even so, the call did not provide a segment-level margin figure, so it is not possible to determine from these numbers how much of the overall gross margin came from Services.
The clearest trade-off sits on the cost side. Apple generated a record September quarter while substantially increasing operating expenses. If that investment produces another wave of successful products, spending will look like preparation. If growth slows, the faster-rising cost base becomes harder to absorb.
What to watch next
Three signals will help clarify whether the quarter marks a new baseline. First, watch whether Services can maintain its pace after reaching an all-time high. Second, look for a cleaner read on Wearables once the prior-year Watch SE3 and AirPods Pro 3 comparison becomes less severe. Third, watch how Apple describes iPhone demand after its nonstandard 2026 lineup.
Bottom line: this was a record financial quarter powered by iPhone revenue, record Services revenue and strong Mac growth. Wearables slipped, operating expenses climbed and tariff refunds helped gross margin. Treat the results as a strong snapshot, not a map of Apple’s future product cycle.
Key takeaways
- Revenue reached a September-quarter record of $114.5 billion, up 12% year over year.
- IPhone revenue rose 17%, Services climbed 10%, and Mac revenue increased 24%.
- Wearables fell 8%, which Apple linked to a difficult comparison with prior-year launches.
- Operating expenses rose 21% as Apple accelerated research and development investment.
- Tariff refunds added one percentage point to gross margin during the quarter.
Frequently asked questions
What was Apple’s revenue for Q4 2026?
Apple reported $114.5 billion in revenue for the fourth fiscal quarter of 2026, up 12% from a year earlier.
Which Apple business grew fastest?
Mac revenue rose 24%, compared with 17% growth for iPhone and 10% for Services.
Why did Wearables revenue fall?
The segment dropped 8% to $8.3 billion. CFO Kevan Parekh cited a difficult comparison against the previous year’s Watch SE3 and AirPods Pro 3 launches.
How many active Apple devices are there?
Apple says its active-device base has passed 2.5 billion worldwide.
Did the earnings call reveal the next iPhone?
No. The call discussed business performance and Apple’s product direction, but the reported figures do not establish details of a future iPhone launch.