Apple Q3 revenues beat forecasts
By Frank Prenesti
Date: Tuesday 03 Nov 2026
(Sharecast News) - Apple reported a stronger-than-expected end to its fiscal year, reporting fourth-quarter revenue of $114.5bn, up 12%, and diluted earnings per share of $2.10, an increase of 14% year-on-year, providing a boost for new chief executive John Ternus who started in September.
Analysts had forecast sales of $113.4m. Gross margin expanded to 47.9%, underscoring the group's ability to protect profitability despite ongoing supply chain and cost headwinds.
The main driver of the beat was the iPhone business, where revenue surged 17% to a September-quarter record of $57.6bn, signalling resilient consumer demand and a healthy upgrade cycle. Mac revenue was also a bright spot, rising 24% to $10.8bn, reflecting continued momentum for devices powered by Apple's proprietary chips.
Apple's high-margin services division delivered another record performance, with revenue rising 10% to $31.6bn. The result reinforced investor confidence in the group's growing base of recurring revenues, which continues to provide an important offset to the cyclicality of hardware sales.
However, the numbers were not without softer areas. iPad revenue fell 10% to $6.2bn, while wearables, home and accessories revenue declined 8% to $8.3bn. Revenue in Greater China increased 21%, although the figure was viewed as a modest disappointment relative to market expectations.
Looking ahead, management forecast 7% to 10% revenue growth for the December quarter, implying another record sales period.
While investors welcomed record annual revenue of $479bn and $28bn in quarterly operating cash flow, attention is likely to remain focused on the sustainability of iPhone demand, the growth trajectory of services and the potential impact of higher component costs on margins.
Reporting by Frank Prenesti for Sharecast.com
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