Apple’s First Earnings Since Price Hikes: Q4 iPhone Revenue Jumps 17% to Record High; Mac Revenue Rises 24%
On November 3, Apple released its financial results for the fourth quarter of fiscal 2026 (ending September 26, 2026) and the full fiscal year. This marks the first key quarterly earnings release after Apple raised product prices amid the global “RAMageddon” memory crisis. While the market widely feared that rising component costs and price hikes would dampen demand, the final figures show Apple’s core hardware business delivered growth against headwinds, with overall revenue and profits beating analyst estimates.
Screenshots from Apple’s official website, same source for subsequent images.
The earnings report posted total revenue of USD 114.477 billion for the fourth quarter, a 12% year on year increase. Net income attributable to shareholders reached USD 30.711 billion, up 11.81% year on year. Diluted earnings per share stood at USD 2.1, rising 14% year on year. Consensus market forecasts had projected revenue of roughly USD 113 billion and EPS of around USD 2; Apple outperformed market expectations on both key metrics.
For the full fiscal year, Apple recorded total revenue of USD 478.834 billion, up 15.06% year on year. Net income attributable to shareholders hit USD 132.175 billion, a rise of 18% year on year. The overall gross margin climbed to 48.79%, reflecting steadily improving profitability.
By business segment, iPhone stood out as the primary growth driver, generating USD 57.6 billion in quarterly revenue — a 17% year on year gain and an all time high for the September quarter. Since the start of this year, prices of core components such as DRAM have kept climbing, pushing upstream costs downstream to end consumers. Apple raised prices for selected products in June. Contrary to concerns that higher prices would reduce consumers’ willingness to upgrade devices, the data indicates Apple’s core user base is relatively price resilient, and new product launches continue to drive shipments and revenue. Notably, the highly anticipated first foldable iPhone Duo went on sale only after the close of this fiscal quarter, so its sales performance is not reflected in this report and will appear in the next fiscal quarter.
Mac was the fastest growing hardware segment this quarter, with revenue of USD 10.8 billion, surging 24% year on year. The uptick is mainly fueled by new Mac models equipped with the M5 series chips, whose performance upgrades triggered concentrated replacement demand among professional users. Combined, iPhone and Mac accounted for nearly 90% of this quarter’s revenue increment, serving as the core engines of Apple’s earnings growth. The Services business maintained steady growth, posting quarterly revenue of USD 31.6 billion, up 10% year on year and hitting a new record, consistently delivering stable high margin income.
Not all segments grew. iPad revenue fell 10% year on year, while wearables, home and accessories revenue dropped 8%. Apple explained the iPad decline stemmed from the absence of new flagship models this quarter, against a high comparison base set by the launch of the new iPad Pro in the same period a year earlier. The wearables segment faced both market saturation and a lull in new product releases.
From an industry wide perspective, the component price surge has hit Android vendors far harder. Most Android brands have been forced to adjust product specifications and rein in costs, and the domestic smartphone market also saw a year on year decline. By contrast, Apple leverages its strong brand premium and ability to pass on cost increases. It has not only offset upstream cost pressures but also lifted its gross margin steadily, demonstrating robust resilience through the business cycle.