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Apple topped Wall Street's targets in John Ternus' first earnings report as chief executive, posting fiscal fourth-quarter revenue of $114.5 billion, up 12% from a year earlier, and diluted earnings of $2.10 a share. Analysts polled by LSEG had expected $113.39 billion in revenue and EPS of $1.99, CNBC reported ahead of the release.
The earnings figure carries an asterisk. Apple said the $2.10 included a favorable impact of $0.05 from tariff refunds, and its 47.9% gross margin included roughly 1 percentage point from the same source. Even without that $0.05, EPS would still have cleared the LSEG estimate. Net income for the quarter ended Sept. 26 was $30.71 billion, compared with the $29.04 billion analysts expected, according to Reuters, citing LSEG data.
iPhone and Mac lead, China trails the forecast
iPhone sales came to $57.58 billion, up from $49.03 billion a year ago, according to Apple's condensed consolidated financial statements. That beat the $56.59 billion LSEG consensus cited by CNBC and the $56.54 billion figure Reuters reported. The quarter captured only about a week of iPhone 18 Pro and Pro Max sales, which began Sept. 18, and none from the foldable iPhone Duo, which went on sale Oct. 23.
Services, the high-margin business investors watch for durability, landed almost exactly on target. Revenue was $31.57 billion, against the $31.56 billion Reuters said analysts expected, a gain of about 10% that Reuters had flagged as the segment's slowest pace in more than three years. |
