Newsletter
Apple reported better-than-expected results for the fourth quarter of FY2026, but its shares fell after its guidance missed investor expectations. In India, the company posted record revenue.
By the numbers:
- Revenue: $114.48 billion vs. $113.39 billion expected
- Earnings per share: $2.10 vs. $1.99 expected
Revenue by business:
- iPhone: $57.58 billion vs. $56.54 billion expected
- Mac: $10.79 billion vs. $9.61 billion expected
- iPad: $6.23 billion vs. $6.70 billion expected
- Services: $31.57 billion vs. $31.58 billion expected
- Wearables, Home and Accessories: $8.30 billion vs. $9.06 billion expected
Rising memory-chip costs continue to be Apple’s biggest challenge, partly driven by the AI infrastructure boom. Some flash-memory prices have risen more than 500% from 2023 levels, according to The Wall Street Journal.
Ternus called the disruption “absolutely unprecedented”. Despite that pressure, Apple’s gross margin reached 47.9%, slightly above the 47.5% analysts expected.
The India business: Apple posted its highest-ever revenue in India, driven by growth across iPhone, Mac and Services, CEO John Ternus said. Mac and Services each recorded all-time revenue highs, while iPhone upgrades reached a September-quarter record.
According to Counterpoint Research, the iPhone 17 was India’s most-shipped smartphone model during the quarter, while the MacBook Neo achieved record sales.
Despite a year-on-year decline in iPhone shipments, Apple’s average selling price in India crossed $1,000 for the first time.
The outlook: Apple expects its gross margin to fall to 45-46% in the December quarter, from 47.9% in Q4. It also forecasts Services revenue growth of 8-9%, below the 10.7% analysts expected, helping explain why its shares fell despite beating quarterly estimates.
