Apple just reported Q4 FY2026 earnings, with shares initially down just 1% in after-hours trading, a relatively small reaction compared to concerns heading into the report.
Apple beat Wall Street’s revenue and earnings expectations, with iPhone sales showing particularly impressive growth. Here are the key numbers:
Revenue: $114.48B vs. $113.38B expected (+12% YoY)
EPS: $2.10 vs. $1.99 expected (+14% YoY)
Gross Margin: 47.9% vs. 47.5% expected
Net Income: $30.71B (+12% YoY)
Revenue by Business:
iPhone: $57.58B vs. $56.54B expected (+17% YoY)
Services: $31.57B vs. $31.58B expected (+10% YoY)
Mac: $10.79B vs. $9.61B expected (+24% YoY)
iPad: $6.23B vs. $6.70B expected (-10% YoY)
Wearables: $8.30B vs. $9.06B expected (-8% YoY)
Quick Read:
Apple Beats Expectations: Revenue and EPS both exceeded consensus, with iPhone and Mac sales driving growth.
Margins Hold Up: Gross margin of 47.9% beat expectations despite rising cost concerns, although tariff refunds provided an approximately 1-percentage-point boost.
China Remains Mixed: Greater China revenue jumped 21% to $17.54 billion but missed Wall Street’s $18.58 billion estimate.
Apple also returned $28 billion to shareholders during the quarter and reported record September-quarter revenue, iPhone sales, and EPS.
Bottom Line: Despite concerns about Apple’s valuation and rising costs, shares are down only about 1% following a strong earnings report. The relatively modest decline suggests the initial market reaction has been less negative than some investors feared.
“Today, Apple is proud to report a September quarter revenue record of $114.5 billion, up 12 percent from a year ago, with iPhone reaching a September quarter record and Services reaching an all-time high, capping off our best fiscal year ever.
Ternus closes his first fiscal year as CEO with double-digit growth across both iPhone and Services, the combination investors had doubted Apple could still deliver at a $4.9 trillion market cap. The September quarter sets the bar for the holiday guide.
John Ternus opened his tenure as CEO with a September quarter record, iPhone revenue of $57.58 billion and Services at an all-time high topping expectations on both lines. Tariff refunds drove part of that, so the underlying beat is thinner than it looks, and the holiday setup rides on iPhone Duo and the revamped Siri.
Apple heads into tonight's Q4 report at 39x trailing earnings, priced within 4% of its $351.73 52-week high, with revenue up 16.4% year over year carrying the weight. The $332.39 consensus target sits below the $339.31 price, and 19 holds, sells, and strong sells against 25 buy ratings say the room is split.
“Apple can keep expanding margins and monetize its 2.5 billion device base through AI services”
Bull case
Gross margin climbed six straight quarters to 50.1% in Q2 2026
Eight consecutive earnings beats going into tonight's report
65% of the global premium smartphone market, per Counterpoint and MacRumors
Q3 2026 EPS of $2.02 topped the $1.89 estimate
Bear case
Rising memory and component costs pressure the margin streak
Global smartphone market just posted its worst third quarter since 2013
Put/call ratio of 1.83 into the report shows traders paying up for downside protection
Q3 2026 revenue of $109.42B only edged the $108.96B estimate
The margin streak is the load-bearing piece and it remains intact, so the thesis holds into John Ternus's first call. Consensus sits at $1.98 EPS on $113.36B in revenue, and as we flagged at 3:10pm, a gross margin below 50% would be the crack that flips this to weakening.
Eight straight beats is the streak John Ternus inherits, and tonight he has to extend it while the global smartphone market just posted its worst third quarter since 2013 on memory shortages. Apple's own China momentum has been the offset, so the December-quarter guide and any commentary on component costs will decide whether the $4.9 trillion valuation holds.
What to watch
December-quarter revenue guidance against a memory-constrained supply chain
Greater China revenue growth and whether iPhone 17 demand held
Gross margin direction after six straight quarters of expansion
Services growth and the Siri AI monetization timeline across the 2.5 billion device base
Gross margin has climbed six straight quarters to 50.1% in Q2 2026, the first time it has cracked 50 in this stretch. That is the number to test tonight, because rising memory and component costs are the one thing that could stall the streak just as Apple's new CEO takes his first earnings call.
As of Jun 30, 2026 quarter end · 13F disclosures lag ~45 days — long positions only, tracked filers only.
Among 16 filers, eight trimmed Apple and only two added in the quarter ended June 30, with one exiting entirely. Berkshire Hathaway held its stake flat and still accounts for the bulk of the roughly $73.8 billion disclosed, while quant shops including Millennium and Renaissance cut hardest. These 13F snapshots are about 45 days stale, leaving current positioning into tonight's report unknown.
Apple goes into tonight's report at $337.07, sitting just $3.48 above its 50-day average at $333.59 and roughly 4% under the $351.73 52-week high that doubles as first resistance. A beat puts that high in play immediately, while a stumble sends the stock toward support at $325.81, with $300.28 and the 200-day at $296.95 below it.
Polymarket traders are pricing an Apple earnings beat as the most likely outcome into tonight's report, with the odds barely budging over the past week despite memory cost and AI questions hanging over John Ternus's first call. Thin volume means this reflects sentiment, and the crowd clearly expects the services-led beat streak to hold.
A 1.83 put/call ratio into tonight's report, with 6,659 puts stacked at the $350 strike against 1,511 calls, says traders paid up for downside protection ahead of John Ternus's first call. Positioning is defensive, and hedging is heavily skewed to the put side. The 46.4% at-the-money implied volatility at $345 shows how much movement the market is pricing either way.
June-quarter results leaned on services and a wide earnings beat while revenue only edged past estimates, so the margin story carried the quarter more than unit demand did. That sets a narrow path tonight: with memory costs climbing and the iPhone cycle under scrutiny, John Ternus needs the same services strength to offset hardware pressure in his first earnings call as CEO.
Apple heads into a pivotal earnings report tonight as new CEO John Ternus prepares to lead his first earnings call.
Investors have plenty of questions heading into tonight.
Apple’s installed base exceeds 2.5 billion devices, offering an enormous opportunity to monetize artificial intelligence through Siri and other services.
But rising memory costs, chip shortages, and questions about Apple’s AI strategy in China threaten to complicate the company’s growth outlook.
With Apple valued at approximately $4.93 trillion, investors are looking for a credible AI roadmap and a reassuring margin outlook. Anything less could raise fresh questions about its next phase of growth.
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