The headline beat gives the shares a supportive starting point after hours, but the bigger test comes on the conference call at 5:00 p.m. ET (2200 GMT). There, December-quarter guidance and gross margin commentary are likely to matter more than the September numbers. The miss in Greater China is the line most likely to temper any rally, given how closely investors track the region as a measure of iPhone competitiveness. With Palantir also beating earlier in the session, a solid Apple print adds to a constructive tone for US tech futures heading into Tuesday’s open.
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Apple cleared the bar in John Ternus’s first quarter as CEO on stronger iPhone and Mac sales, but softness in China and some hardware lines leaves the call and holiday guidance to do the heavy lifting.
Summary:
- Fiscal Q4 EPS was $2.10, compared with estimates of $2.00; revenue was about $114.5 billion against forecasts of around $113.5 billion
- Revenue rose nearly 12% from about $102.5 billion a year earlier, above Apple’s guidance of 9% to 11% growth
- iPhone revenue was about $57.6 billion (est. around $56.5 billion) and Mac about $10.8 billion (est. around $9.7 billion)
- iPad (about $6.2 billion) and wearables, home and accessories (about $8.3 billion) both missed estimates; services were in line at about $31.6 billion
- Greater China revenue was about $17.5 billion, below forecasts of around $18.8 billion; Americas revenue was slightly ahead at about $48.7 billion
- This was the first quarter reported under CEO John Ternus, with CFO Kevan Parekh; the conference call is at 5:00 p.m. ET
Apple beat Wall Street expectations in its fiscal fourth quarter, the first reported under Chief Executive John Ternus. Stronger iPhone and Mac sales outweighed shortfalls in Greater China, iPad and wearables.
The company reported earnings of $2.10 per share for the quarter to late September, ahead of estimates of $2.00. Revenue came in at about $114.5 billion, against forecasts of around $113.5 billion. That is growth of nearly 12% from roughly $102.5 billion a year earlier. It puts the result above the top of Apple’s own guidance, given in July, for growth of 9% to 11%, which implied revenue of about $111.7 billion to $113.7 billion.
Hardware drove the beat. Products revenue reached about $82.9 billion, compared with expectations of around $81.9 billion. iPhone revenue was about $57.6 billion, ahead of estimates near $56.5 billion, even though the quarter included only the first nine days of iPhone 18 Pro and Pro Max sales. Mac was the standout, at about $10.8 billion against forecasts of around $9.7 billion.
Other lines were weaker. iPad revenue was about $6.2 billion, below estimates near $6.9 billion. Wearables, home and accessories came in at about $8.3 billion, short of expectations of around $9 billion. Services revenue was about $31.6 billion, effectively in line with forecasts.
By region, Americas revenue of about $48.7 billion was slightly ahead of estimates. Greater China was the clear weak spot, at about $17.5 billion against forecasts of roughly $18.8 billion. Operating expenses of about $19.2 billion matched expectations.
The figures released so far do not include gross margin. Apple had guided to a range of 47% to 48% and flagged continued pressure from higher memory pricing, making the margin outcome a key point for the call.
Attention now turns to the conference call with Ternus and Chief Financial Officer Kevan Parekh. Guidance for the December quarter, the first to include a full holiday season of iPhone 18 Pro sales, is likely to shape the market’s verdict. So is any update on supply constraints and memory costs.
This article was written by Eamonn Sheridan at investinglive.com.