Apple reports strong quarterly results

Apple's new CEO, John Ternus, announced strong financial results for the fourth quarter of fiscal year 2026, with revenue reaching $114.48 billion, surpassing analyst expectations of $113.39 billion. This marked a significant increase compared to the same period in the previous year.

Profit and earnings per share rise

The company's net profit was $30.71 billion, compared to $27.47 billion in the same period last year. Earnings per share also increased to $2.10, exceeding the expected $1.99, indicating strong profitability.

iPhone and Mac segments show growth

The iPhone segment saw revenue of $57.58 billion, a 17.46% increase year-on-year. The Mac segment also grew by 23.68% to $10.79 billion, showing robust performance in key product lines.

iPad and accessories revenue decline

However, the iPad segment experienced a 10.4% decline in revenue to $6.23 billion, and accessories and connected devices revenue dropped 7.91% to $8.3 billion, reflecting weaker performance in these areas.

Services division sees steady growth

Apple's Services division, which includes the App Store, iCloud, Apple Music, and Apple Pay, reported revenue of $31.57 billion, a 9.82% increase year-on-year, showing continued growth in digital services.

Gross margin and inventory changes

Apple's gross margin for the quarter was 47.89%, down slightly from 47.18% in the previous quarter. However, this was partially offset by U.S. customs duty refunds. The company's inventory value increased to $14.54 billion, more than double the $5.72 billion recorded a year ago.

Full fiscal year performance

For the full fiscal year 2026, Apple achieved $478.83 billion in revenue, a 15% increase compared to $416.16 billion in 2025, with annual net profit reaching $132.18 billion. The company also distributed $28 billion to shareholders during the quarter.

Challenges ahead

Despite the strong financial performance, Apple faces challenges from rising memory prices, which have led to product price increases and could potentially affect sales in the future.