# Apple Reports Record Q4 2026 Revenue of $114.5 Billion Apple exceeds analyst expectations with strong iPhone sales and record-breaking services revenue performance. - **Source:** [MacStories](https://brifing.si/source/2d6fb241-7483-4085-bcc6-8301b013a2d2) - **Published:** 2026-11-02 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/99cf0e48-0f07-4164-bbbb-c9bace4809dc ## Record Quarterly Financial Performance Apple reported $114.5 billion in revenue for the fourth quarter of 2026, marking an 11.7% increase compared to the previous fiscal year. This performance surpassed the company's own July guidance of 9-11% growth. Net income reached $30.7 billion, representing an 11.8% rise, while diluted earnings per share climbed to $2.10. ## iPhone Dominance and Market Impact The iPhone remains Apple's primary revenue driver, generating $57.6 billion during the quarter. This figure represents 50.3% of total revenue and a 17.5% year-over-year increase. CEO John Ternus highlighted the iPhone Duo and iPhone 18 Pro models as key contributors to this record-setting performance, signaling strong consumer demand for the latest hardware. ## Services Revenue and Margin Efficiency Services revenue reached an all-time high of $31.6 billion, accounting for 27.6% of total revenue. While products generated $82.9 billion, the services segment demonstrated superior efficiency with a 76.0% gross margin. This segment now contributes 43.7% of Apple’s total gross margin, proving its critical role in the company's long-term profitability strategy. ## Operational Cash Flow and Margins Apple achieved an overall gross margin rate of 47.9%, with total gross margin dollars hitting $54.8 billion, a 13.4% increase. Despite strong revenue growth, operating cash flow decreased by 5.5% to $28.1 billion. These figures reflect the complex balance between high-margin services growth and the capital-intensive nature of new product manufacturing cycles. ## Regional Growth and Market Expansion Four out of five global regions experienced growth during the September quarter. The Americas region led this expansion, contributing $4.5 billion in new revenue, which accounts for 37.4% of the company's $12.0 billion total growth. This broad-based performance indicates that Apple's product ecosystem continues to resonate effectively across diverse international consumer markets. ## Leadership Transition Under John Ternus This earnings report marks the first official financial disclosure under the leadership of CEO John Ternus. His commentary emphasized the integration of new hardware, such as Touch for Mac and home-focused devices, alongside the introduction of Siri AI. These strategic product additions are intended to sustain momentum heading into the holiday season. ## Exceeding Market Analyst Expectations Apple’s results outperformed the consensus estimates provided by analysts, who had projected revenue of $113.46 billion and earnings per share of $2.00. By delivering $114.5 billion in revenue and $2.10 in diluted EPS, the company successfully surpassed market expectations, driven largely by the strength of the Mac lineup and sustained services growth. ## Strategic Outlook and Future Trajectory The company concludes its best fiscal year ever with an ambitious product lineup, including the MacBook Neo and advanced AI capabilities. With iPhone and services combined accounting for 77.9% of net sales, Apple is positioning its ecosystem to maintain high retention. Future performance will depend on sustaining this momentum across global regions. ## Sources covering this story - https://www.macstories.net/news/apple-reports-q4-2026-revenue-of-114-5-billion/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._