Apple Inc. — Fiscal 2026 Fourth Quarter Earnings Summary

Financial Performance:

• Total quarterly revenue reached $114.5 billion, a 12% increase year over year.
• Fiscal 2026 full-year revenue totaled $479 billion.
• Diluted earnings per share (EPS) were $2.10, up 14% year over year; full-year diluted EPS was $8.98, up from $7.46.
• Gross margin was 47.9% for the quarter, including a favorable impact of approximately 1 percentage point from tariff refunds.
• Operating cash flow for the quarter was $28 billion; full-year operating cash flow was $145.1 billion.
• Net income for the quarter was $30.7 billion; full-year net income was $132.2 billion.
• Total cost of sales was $59.7 billion for the quarter; full-year cost of sales was $245.2 billion.
• Operating expenses were $19.2 billion for the quarter; full-year operating expenses were $75.5 billion.
• Deferred revenue was $9.6 billion as of September 26, 2026, compared to $9.1 billion in the prior year period.
• Total term debt was $78.1 billion ($9.9 billion current, $68.2 billion non-current) as of September 26, 2026, down from $90.7 billion ($12.4 billion current, $78.3 billion non-current) in the prior year period.
• Cash and cash equivalents were $36.3 billion as of September 26, 2026, compared to $35.9 billion in the prior year period.

Guidance and Future Outlook:

• The company stated it is closing the year with its most ambitious lineup yet, including the iPhone Duo, iPhone 18 Pro, and iPhone 18 Pro Max.
• New hardware for the home and "Touch to Mac" were introduced, alongside an all-new Siri AI.
• Management indicated the new lineup is designed to carry the company into the holiday season.

Business Segments and Product Lines:

• iPhone revenue reached a September quarter record.
• Services revenue reached an all-time high.
• Product revenue was $82.9 billion for the quarter; Services revenue was $31.6 billion.
• Full-year Product revenue was $355.5 billion; full-year Services revenue was $123.3 billion.
• iPhone revenue for the quarter was $57.6 billion; full-year iPhone revenue was $254.1 billion.
• Mac revenue was $10.8 billion for the quarter; full-year Mac revenue was $37.9 billion.
• iPad revenue was $6.2 billion for the quarter; full-year iPad revenue was $27.9 billion.
• Wearables, Home and Accessories revenue was $8.3 billion for the quarter; full-year revenue was $35.6 billion.
• The installed base of active devices reached a new all-time high across all major product categories and geographic segments.
• Americas revenue was $48.7 billion for the quarter; Europe was $32.0 billion; Greater China was $17.5 billion; Japan was $6.5 billion; Rest of Asia Pacific was $9.7 billion.

Market and Competitive Landscape:

• The company cited very high levels of customer satisfaction and loyalty.
• The press release notes the highly competitive and rapidly changing nature of the markets in which the company operates.

Risks and Challenges:

• Risks include global and regional economic conditions, government policies, trade disputes, geopolitical tensions, conflict, terrorism, natural disasters, and public health issues.
• Risks related to product design, manufacture, introduction, and transition, including reliance on third parties for components, technology, manufacturing, and services.
• Risks regarding information technology system failures, network disruptions, and data security breaches.
• Risks related to unfavorable legal proceedings, government investigations, and complex or changing laws and regulations.

Management Commentary and Tone:

• John Ternus, CEO, described the quarter as a record for total company revenue, iPhone, and Services, capping off the company's "best fiscal year ever."
• Kevan Parekh, CFO, noted record net income and EPS, double-digit EPS growth for the fiscal year, and the ability to return $28 billion to shareholders due to strong operating cash flow.
• Management expressed confidence in the new product lineup carrying the company into the holiday season.

Other Key Points:

• The Board of Directors declared a cash dividend of $0.27 per share, payable on November 16, 2026, to shareholders of record as of November 12, 2026.
• The company returned $28 billion to shareholders during the quarter.
• Full-year share repurchases totaled $86.4 billion.
• Full-year dividend payments totaled $15.7 billion.
• A live streaming of the Q4 2026 financial results conference call is scheduled for November 2, 2026, at 2:00 p.m. PT.
• The company has more than 150,000 employees.