Ing. Calogero Bono
Apple has published the results for the fourth quarter of fiscal 2026, which closed on September 26. Revenue came in at $114.5 billion, up 12%, and the year closes at $478.8 billion, the highest in the company's history. For John Ternus, it is his first quarterly report as CEO. The point to watch is something else. Memory costs are rising and will push gross margin down.
A few terms before we get into the facts. Fiscal quarter is Apple's accounting period, which does not match the calendar year. Gross margin is the share of revenue left after paying the direct costs of production. Memory refers to the chips that store data in devices, whose purchase price is climbing. Advanced node is the technology used to manufacture the latest processors, such as 2-nanometer chips. Private Cloud Compute is the server infrastructure Apple uses to process part of its AI requests.
What are the quarter and full-year numbers?
According to DDay, the quarter brings $114.5 billion in revenue and $30.7 billion in net income. The best September quarter ever. For HDblog, analyst estimates collected by LSEG were $113.39 billion, so the results beat them.
For the full fiscal year, revenue rises 15% to $478.8 billion, against $416.2 billion in 2025. Annual net income reaches $132.2 billion, up 18%. Earnings per share go from $1.85 to $2.10, above the $1.99 expected.
Which products drove growth and which held it back?
The iPhone is worth $57.6 billion, up 17%. According to HDblog, the new iPhone 18 Pro and Pro Max were counted for only nine days, since they went on sale on September 18. Mac grows 24% to $10.8 billion, and Apple says it has never sold so many Macs in a fiscal year.
iPad falls to $6.2 billion, down 10%, due to supply problems and the comparison with last year's launch of the iPad with A16. Wearables, Home and Accessories come in at $8.3 billion, down 8%. On this front, attention also turns to the three new iPads expected in 2027, according to Gurman.
How much are Services worth and where is Apple growing?
Services post an all-time record at $31.6 billion, up 10%, with a gross margin of 76%. According to Apple, paid subscriptions exceed 1.5 billion. MacRumors reports that the App Store had almost a billion average weekly visitors.
By geography, China brings in $17.54 billion, up 21%, the highest growth. Asia-Pacific grows 15%, Europe 11.5%, the Americas 10.2%. Japan is the only negative figure, down 1.4%. In China, the arrival of Apple Intelligence with iOS 27.3 also matters, as the arrival of Apple Intelligence with iOS 27.3 plays a part there too.
Why is memory weighing on Apple's margins?
For the December quarter Apple forecasts revenue growth of 7-10% and a gross margin between 45% and 46%. Ternus describes memory costs as "unprecedented", and those tied to the Siri AI launch also weigh. The CFO explained that the drop of about one point in margin between June and September was entirely due to memory.
The impact was softened by inventory bought at earlier prices, by other components that cost less, and by price increases for Mac and iPad at the end of June and for iPhone in September. Apple expects memory prices to keep rising beyond December and constraints on Mac and iPad. The issue touches the whole industry, as the summit between Samsung and Sam Altman shows.
Limits to know
The figures are reported by Apple and picked up by the press, not independently verified. We do not know how much memory costs will rise, or when demand and supply for iPhone Duo will come back into balance. The prices and limits of the iCloud+ plans tied to AI features on servers are missing. The December forecasts are company estimates and may change.
What changes for those working in digital
If you buy hardware for your business, expect higher prices and uncertain availability for Mac and iPad, since Apple expects constraints precisely on these. Planning your refresh cycles in advance costs less than chasing stock.
Developers working for the Apple ecosystem are building for a base of over 2.5 billion active devices. For those making iOS and Android apps, server-side AI will come with usage limits and paid tiers. The issue of computing costs also touches the restrictions imposed by OpenAI.
Our take
The numbers are solid, but the real news is in the margin. A company this strong admits it cannot avoid higher component prices and passes part of the cost on to customers, a choice made "reluctantly" according to the source. The signal for the market is clear. When memory costs more, even the giants raise their price lists. We also find the silence on iPhone Duo and display problems prudent. Demand exceeds supply, but return data is needed to judge.
Frequently asked questions
How much did Apple earn in fiscal 2026?
$478.8 billion in revenue, up 15% from 2025. Net income was $132.2 billion, up 18%. It is the best year in the company's history.
Which product brought in the most revenue?
The iPhone, with $57.6 billion in the quarter, up 17%. It is a record for a September quarter. The iPhone 18 Pro models were counted for only nine days.
Why is Apple's gross margin falling?
Because of memory costs, which Ternus described as unprecedented. The costs of the Siri AI launch also weigh on it. Apple expects a margin between 45% and 46% in December.
Has Apple raised prices?
Yes. According to the source, increases arrived at the end of June for Mac and iPad and in September for iPhone. They partly offset the cost of memory.
What does Apple forecast for the December quarter?
Revenue growth of 7-10% and Services growth of 8-9%. Apple is counting on the best quarter in its history. It does expect supply constraints on Mac and iPad, however.
Memory, Siri AI and iCloud+ are the three things to follow until December
The next quarter will show whether the margin holds and whether prices rise further. The details on paid AI will matter too.
- Check memory and storage prices on Apple's and competitors' price lists before setting your hardware budget.
- Follow the announcement of limits and prices for iCloud+ plans covering server-side AI features.
- Watch whether the Mac and iPad constraints Apple has forecast are confirmed in the December results.
