Apple reported $114.5 billion in revenue for the fiscal quarter ended September 26, up 12% year over year, with net income of $30.7 billion and earnings per share of $2.10. Revenue and EPS both exceeded analyst expectations, but shares fell after the company forecast lower gross margin for the holiday quarter.
The results were Apple’s first under new CEO John Ternus. Fiscal-year revenue reached a company record of $478.8 billion, up about 15% from $416.2 billion a year earlier. Apple also set September-quarter records for total revenue and iPhone revenue.
iPhone generated $57.6 billion in the quarter, rising about 17.5% from $49 billion a year earlier, helped in part by sales of the iPhone 18 Pro range. Services reached a separate all-time record of $31.6 billion.
- iPhone revenue: $57.6 billion, up about 17.5% year over year.
- Services revenue: $31.6 billion, up nearly 10% year over year.
- Mac revenue: $10.8 billion, up about 24% year over year.
- iPad revenue: $6.2 billion, down about 10% year over year.
- Wearables, Home and Accessories revenue: $8.3 billion, down nearly 8% year over year.
The iPhone Duo did not contribute to the reported quarter because Apple’s first foldable reached stores after the period closed. Ternus told Reuters that Apple cannot currently meet demand for the device and does not know when supply will catch up with orders. He also said only a very small percentage of units had been returned over display issues, with replacements being provided.
Holiday outlook puts focus on costs
For the current quarter, Apple expects gross margin of 45% to 46%, down from 47.9% in the quarter just reported. The company attributed much of the pressure to higher memory prices, alongside costs associated with launching Siri AI. The previous quarter’s margin also benefited by roughly one percentage point from tariff refunds.
Apple forecast 7% to 10% year-over-year revenue growth for the holiday period, which it expects to become its largest revenue quarter ever. Services growth is projected at 8% to 9%, below the 10.7% analyst estimate cited by Reuters.
Shares fell as much as 4% in after-hours trading during the investor call before recovering part of the loss. They closed November 3 at $331.90, down about 1.9%. Apple has also raised prices on several older iPhone models, including the iPhone 17, after introducing the iPhone 18 Pro lineup; the company said those increases partly offset higher memory costs, which it expects to keep rising next year. The next quarter will show the first financial contribution from iPhone Duo sales.
