Apple reported results for the quarter ended September 26, 2026, giving CEO John Ternus his first earnings report since taking the role. Quarterly revenue was $114.5 billion, up 12% year over year, while diluted earnings per share reached $2.10, an increase of 14%. Apple said the September quarter set records for total company revenue, iPhone revenue and earnings per share. Services revenue also reached a new all-time high.
CNBC reported that iPhone revenue was $57.58 billion, above analyst estimates of $56.54 billion. Mac revenue was $10.79 billion, also ahead of expectations. iPad revenue came in at $6.23 billion, below the $6.7 billion estimate. The new iPhone Duo went on sale after the quarter ended and was not included in the results. Apple said iPhone revenue increased year over year, reflecting continued strength in its largest product category.
Apple forecast services revenue growth of 8% to 9% for the December quarter. It also projected a gross margin of 45% to 46%, below the analyst average of 46.3% cited by CNBC. Apple said memory and other component costs had increased. The company has adjusted some product prices to offset cost pressure, but changes in component expenses could still affect margins in coming quarters.
During the earnings call, Ternus said Apple sees opportunities to expand artificial intelligence through hardware, including by giving customers a reason to upgrade or switch devices. Apple continued to advance Siri AI and expand its product lineup. Customers and investors will be watching whether new AI features encourage device upgrades and whether the company can translate new software experiences into growth for its services business.
Apple said it generated $28 billion in operating cash flow during the quarter and returned $28 billion to shareholders. Its board declared a cash dividend of $0.27 per share, payable on November 16 to shareholders of record on November 12. The company also said its installed base of active devices reached a new all-time high across major product categories and geographic segments. These figures show that cash generation and the scale of Apple’s device ecosystem remain important parts of its financial performance.
Apple said revenue for fiscal 2026 reached $479 billion, a company record. Ternus said the company had completed a busy period of product launches, including new iPhones, home products and the first Mac computers with touch capabilities. The next phase will depend on the reception of new products, continued growth in services and the effect of component costs on profitability.