Despite higher quarterly revenue, Apple’s outlook for lower profit margins due to rising component costs has disappointed investors. The company’s shares fell 2.62% in after-hours trading.
Apple has published its first financial report under new CEO John Ternus. The company released its results for the fourth quarter of fiscal year 2026, which ended on September 26.
Revenue increased 12% year over year to $114.5 billion. Net income rose 11.8%, from $27.47 billion to $30.71 billion. Earnings per share reached $2.11.
iPhone sales increased 17% year over year, reaching a record $57.58 billion. In September, Apple introduced the iPhone 18 Pro and iPhone 18 Pro Max, as well as its first foldable smartphone, the iPhone Duo. However, pre-orders for the iPhone Duo were not included in the reporting period. The company also raised prices for previous generations of its smartphones.
During a call with investors, John Ternus and Apple CFO Kevan Parekh said the company was facing growing financial pressure due to rising prices for memory and storage components. Supplies of components purchased earlier at lower prices are running out.
Apple forecasts revenue growth of 7–10% during the holiday season. However, the company warned that profit margins would be lower than expected due to higher memory costs and expenses related to AI implementation. Apple also expects revenue growth in its services business to slow.
Apple shares fell 1.8% by the close of regular trading in the United States. During the after-hours session, the decline reached 2.62%. According to Bloomberg analysts, the main short-term concern for investors is the expected decline in the company’s profit margins.
