Key Highlights

  • Apple (NASDAQ:AAPL) reported September-quarter Revenue of USD 114.48 billion, up 12% and ahead of the USD 113.39 billion expected, with EPS of USD 2.10 against a USD 1.99 consensus.
  • iPhone revenue reached USD 57.58 billion against USD 56.54 billion expected, while services revenue of USD 31.57 billion was roughly in line.
  • Gross Margin came in at 47.9%, including about one point from Tariff refunds, but December-quarter guidance is 45% to 46% because memory costs are rising.
  • Shares fell about 1.9% on November 3, 2026, after dropping as much as 4% during the earnings call.

A Record Quarter Across Most Lines

Apple (NASDAQ:AAPL) reported fiscal fourth-quarter results after the close on Monday, November 2, 2026, its first earnings report under CEO John Ternus. Revenue rose 12% to USD 114.48 billion, the biggest September quarter in the company's history. Diluted EPS of USD 2.10 beat the USD 1.99 consensus even after stripping out a five-cent benefit from tariff refunds. iPhone revenue climbed about 17.5% to USD 57.58 billion on Demand for the iPhone 18 Pro, and Mac revenue of USD 10.79 billion topped the USD 9.61 billion forecast. Gross margin of 47.9% beat the 47.5% forecast, so the weaker outlook was the real surprise.

Where the Shortfalls Appeared

Not every line met forecasts. iPad revenue of USD 6.23 billion and wearables revenue of USD 8.30 billion fell short, and China revenue of USD 17.54 billion trailed the USD 18.58 billion expected. Services revenue of USD 31.57 billion matched consensus, but management guided services growth to 8% to 9% for the December quarter, under the 10.7% analysts had penciled in. The larger issue was margin guidance. Management expects 45% to 46%, and CFO Kevan Parekh said rising memory costs accounted for the whole underlying margin decline between the June and September quarters. Excluding tariff refunds, the September margin was nearer 46.9%.

Memory Costs and What Comes Next

Ternus described memory pricing as unprecedented, a sign that AI demand for high-bandwidth memory is squeezing Supply for consumer devices. Apple (NASDAQ:AAPL) can respond with pricing, product mix or supplier terms, and each choice carries trade-offs. The share reaction showed how sensitive investors are to profitability. The stock barely moved on the release, slid as much as 4% during the call and closed about 1.9% lower on November 3, while other published quotes ranged from 2% to 3.8% intraday. Watch holiday-quarter iPhone demand, China trends, services growth and further comments on component costs. Tariff refunds may not recur, so margin comparisons need care. The guided margin is a range, not a promise, and component prices can shift quickly. A strong holiday quarter could offset some pressure through volume, while softer consumer demand would expose the squeeze more clearly. Pricing commentary from management will matter as much as the headline numbers.

Where Things Stand

Apple fell because investors fixated on a margin warning rather than a record quarter. Revenue, EPS and iPhone sales beat expectations, yet guidance for a 45% to 46% gross margin and slower services growth raised doubts about earnings power. Apple (NASDAQ:AAPL) has the demand, but memory costs are a real headwind that may last while AI absorbs supply. The weight of evidence points to a short-term earnings squeeze rather than a broken business. Holiday sales and memory pricing are the next tests, and the share price may stay volatile until they clarify.