TLDR
- Apple posted Q4 earnings of $1.85 per share, beating the $1.77 analyst estimate
- Revenue reached $102.5 billion, topping forecasts as iPhone 17 demand exceeds supply
- China sales dropped to $14.49 billion but CEO expects recovery next quarter
- December quarter revenue projected to grow 10-12% with record iPhone sales expected
- Shares jumped 4% after hours on strong guidance and earnings beat
Apple delivered fourth-quarter results that beat Wall Street expectations. Earnings per share hit $1.85, crushing the $1.77 consensus estimate.
Revenue came in at $102.5 billion. Analysts had projected $102.2 billion for the quarter.
Shares rose 4% in extended trading. Investors responded positively to the earnings beat and forward guidance.
The iPhone business generated $49.03 billion in revenue. While this missed estimates slightly, it still represented 6% growth year over year.
CEO Tim Cook called iPhone 17 demand “off the chart.” Multiple models are currently supply constrained due to overwhelming customer interest.
Store traffic is running ahead of last year’s pace. Online orders are also showing strong momentum compared to previous launches.
Cook expects the December quarter to set records. He specifically predicted the best iPhone revenue in company history.
The iPhone 17 series features updated designs and camera improvements. The Pro and Pro Max models received the most upgrades.
Apple introduced the iPhone Air to replace the Plus lineup. The new device emphasizes a slimmer profile and reduced weight.
China Weakness But Services Shine
Greater China revenue fell to $14.49 billion. This badly missed the $16.4 billion forecast from analysts.
Cook remains optimistic about the region. He expects China to return to growth in the current quarter based on early iPhone 17 sales data.
Total revenue still grew 8% year over year. CFO Kevan Parekh pointed to record active device users across all product lines.
Services revenue hit $28.7 billion. This beat expectations and grew 15% from the prior year.
The Services category includes iCloud, Apple Music, App Store revenue, and AppleCare. It has become a major profit center for the company.
Mac sales jumped 13% to $8.73 billion. The MacBook Air saw strong demand after a $100 price cut.
iPad brought in $6.95 billion. Wearables revenue reached $9 billion for the quarter.
Record Quarter Ahead
Apple projects 10-12% revenue growth for the December quarter. This outlook exceeded what analysts had been modeling.
Gross margin reached 47.2%, beating the 46.4% estimate. This happened despite $1.1 billion in tariff costs.
Tariffs will increase to $1.4 billion next quarter. Parekh confirmed Apple won’t raise prices to offset these expenses.
The company continues expanding AI features. Siri updates and ChatGPT integration are planned for 2026.
Apple’s market cap recently crossed $4 trillion. Only Microsoft and Nvidia have reached this valuation milestone.
The stock is up nearly 1% year-to-date. Apple remains a core holding in most tech-focused portfolios.
Active device users hit a new all-time high. This metric measures customers who used an Apple device in the last 90 days.
Supply constraints on iPhone 17 models should ease soon. Production is ramping up to meet the unexpectedly high demand.
Parekh said the December quarter will be “the best ever for the company and the best ever for iPhone.” The forecast represents one of Apple’s most bullish outlooks in recent quarters.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
