Apple reported a record-breaking fiscal 2026 fourth quarter, ending September 26, 2026, with quarterly revenue of $114.5 billion. This represents a 12 percent increase year-over-year and contributes to an all-time record annual revenue of $479 billion. The company also reported a gross margin of 47.9 percent, which included a favorable impact of approximately 1 percentage point from tariff refunds. Diluted earnings per share (EPS) reached $2.10, a 14 percent increase over the previous year, which also benefited from a $0.05 favorable impact from those same tariff refunds.
The primary drivers of this growth were the iPhone and Services divisions. Apple achieved a September quarter record for iPhone revenue and reached an all-time high in Services revenue. CEO John Ternus attributed these results to a new product lineup, which includes the 'iPhone Duo'—described as the most transformational iPhone since the original—alongside the iPhone 18 Pro and iPhone 18 Pro Max. The company also introduced a new generation of hardware for the home and brought 'Touch' functionality to the Mac for the first time, integrated with a new Siri AI system.
Despite the record-breaking figures, the company's long-term strategy faces several variables. Apple generated $28 billion in operating cash flow during the quarter, which it used to return $28 billion to shareholders. While the company reported high levels of customer satisfaction and a record-high installed base of active devices, the transition to an AI-centric ecosystem introduces new considerations. For instance, the integration of AI into Siri may involve dependencies on external platforms, and the company's ability to maintain high margins while navigating potential shifts in consumer spending power in an AI-driven economy remains a key area of observation for investors.