On 2 November 2026, Apple reported a September-quarter record of $114.5 billion in revenue, up 12% year over year, with diluted earnings per share of $2.10. The same day, Reuters reported that Apple guided December-quarter gross margin to 45%–46%, below the 47.9% it had just posted. So the quarter was a record, and the outlook was softer. Here is how the two fit together.
Key takeaways
- Apple reported record September-quarter revenue of $114.5 billion on 2 November 2026, up 12%.
- Reported sales and profit came in above the Bloomberg consensus estimates, while iPad and Greater China came in below.
- Watch margins: Apple guided the December quarter to 45%–46%, partly on higher memory costs.
What Apple reported for the September quarter
Apple's financial year does not follow the calendar. Its fiscal year is a 52 or 53 week period ending on the last Saturday of September, so this fourth quarter ended on 26 September 2026. Apple also says holiday demand has historically made its first fiscal quarter stronger than the others, which means Christmas lands in the next report, not this one.
Here are the headline figures, as Apple reported them.
| Metric | Quarter ended 26 Sep 2026 | Year-earlier quarter |
|---|---|---|
| Total net sales | $114.477bn | $102.466bn |
| Net income | $30.711bn | $27.466bn |
| Diluted earnings per share | $2.10 | $1.85 |
| Gross margin | 47.9% | 47.2% |
| Operating cash flow | $28bn | not given |
Two terms worth a line each. Diluted earnings per share is profit divided across all shares that exist, including those that could be created. Gross margin is what's left out of every $100 of sales once you take out the direct cost of making and shipping the product.
Apple's share price closed at $338.32 on 2 November 2026, which MarketBeat data put at a market value of about $4.94 trillion. For the wider picture, see our rundown of the Magnificent 7 stocks.
Where the growth came from
iPhone did most of the work. iPhone net sales were $57.583 billion against $49.025 billion a year earlier, a 17.5% increase. The timing matters. CNBC reported that the iPhone 18 Pro and Pro Max went on sale on 18 September, eight days before the quarter closed, so only eight days of their sales landed in this period, and the iPhone Duo arrived on 23 October, after the quarter ended.
Services hit a new all-time high of $31.573 billion, up 9.8% from $28.750 billion. That's the part people pay for month after month, which makes income steadier than selling a device once. On the earnings call, CFO Kevan Parekh reported a Services gross margin of 76%. A basis point is one hundredth of a percentage point. Services gross margin rose 40 basis points from the previous quarter. For another company built on recurring software revenue, read our piece on Microsoft stock.
The rest of the line-up split in two directions. Mac revenue was $10.792 billion, up 23.7%. iPad fell 10.4% to $6.229 billion, and Wearables, Home and Accessories fell 7.9% to $8.300 billion.
Did Apple beat what analysts expected?
Analysts publish forecasts before every results day.
| Metric | Apple reported | Bloomberg consensus estimate (2 Nov 2026) |
|---|---|---|
| Revenue | $114.477bn | $113.46bn |
| Diluted EPS | $2.10 | $2.00 |
| iPhone revenue | $57.583bn | $56.48bn |
| iPad revenue | $6.229bn | $6.83bn |
| Greater China revenue | $17.539bn | $18.75bn |
Revenue, earnings per share and iPhone came in higher than the estimates. iPad and Greater China came in lower. Beating a forecast and growing are two different things, and neither one decides what a share price does next.
Greater China grew fastest, and still missed the forecast
Both of these are true at the same time. Greater China net sales were $17.539 billion against $14.493 billion a year earlier, which Apple described on its earnings call as 21% growth, and CEO John Ternus called it a quarterly record. That same $17.539 billion sat below the $18.75 billion consensus estimate.
Growth was spread across regions in the quarter, calculated from Apple's reported regional sales:
- Greater China: up 21.0%
- Rest of Asia Pacific: up 15.0%
- Europe: up 11.5%
- Americas: up 10.2%
- Japan: down 1.4%
For readers in Europe, that middle line is the interesting one. Apple's growth this quarter was not a one-market story.
Margins, the dividend and what Apple said about the quarter ahead
Gross margin came in at 47.9%, including an estimated one percentage point of help from tariff refunds. Parekh said that excluding tariff refunds from both the June and September quarters, company gross margin actually fell about one percentage point from the previous quarter, mainly because of higher memory costs.
Apple also declared a cash dividend of $0.27 per share, with a record date of 12 November and payment planned for 16 November 2026. That matches the $0.27 declared on 30 July 2026.
Then came the outlook. Reuters reported that for the December 2026 quarter Apple guided to gross margin of 45%–46% and revenue growth of 7%–10% year over year, with the margin outlook reflecting higher memory costs and some Siri AI ramp costs. These are forecasts, not results. A company can report a record quarter and still point to thinner margins ahead, and that gap is usually where the market's attention goes.
Frequently asked questions
How big was Apple's full fiscal year 2026?
For fiscal 2026 as a whole, Apple reported revenue of $478.834 billion and net income of $132.175 billion. The September quarter contributed $114.477 billion of that revenue.
Why does Apple call the September quarter its fourth quarter?
Apple's fiscal year ends on the last Saturday of September, with an extra week added to the first fiscal quarter every five or six years. So the three months to 26 September 2026 closed the financial year. Holiday shopping falls into the following quarter, which Apple says has historically been its strongest.
What is the difference between a dividend and a share buyback?
A dividend is cash paid out for each share you hold on a set date. Apple declared $0.27 per share on 2 November 2026, payable on 16 November to holders of record on 12 November. A buyback is different: the company buys back its own shares, so each remaining share represents a slightly bigger slice of the business. Neither one guarantees a higher share price.
What do Apple customers actually pay?
On 3 November 2026, Apple's US store listed the iPhone 18 Pro starting at $1,199. Apple One subscriptions in the US were listed at $21.95 a month for Individual, $27.95 for Family and $39.95 for Premier. Those monthly plans are the kind of revenue that sits inside the Services line.
What has Apple launched since the quarter closed?
The iPhone Duo reached Apple Store locations worldwide on 23 October 2026, after the quarter ended. On 27 October, Apple announced a new 14-inch MacBook Pro with the M6 chip, with preorders from 28 October and store availability planned for 6 November 2026.
Sources
- Apple: Apple reports fourth quarter results (2 November 2026)
- Apple: FY26 Q4 Consolidated Financial Statements (2 November 2026)
- Reuters: Apple results beat Wall Street expectations on strong iPhone sales (2 November 2026)
- CNBC: Apple Q4 2026 earnings live updates (2 November 2026)
- Apple: Dividend History
- Apple: Buy iPhone
Cover photo by William Hook on Unsplash.
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