Apple just wrapped up its fiscal fourth quarter 2026 earnings call, delivering a strong financial report with $114.5 billion in total revenue. New CEO John Ternus took the stage to share important updates regarding device sales, supply constraints, and the future of artificial intelligence across the product lineup. The quarter set multiple financial records while shedding light on some upcoming changes for everyday users.
Revenue hits new records during the September quarter
Total revenue reached $114.5 billion, which represents a 12 percent increase compared to the same time last year. Net income came in at $30.71 billion with earnings per share sitting at $2.10.
A big chunk of this financial success came from services, bringing in an all time high of $31.57 billion. The active installed base of devices has also grown to more than 2.5 billion worldwide. This massive number gives developers a giant audience on the App Store to sell software and subscriptions.
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Hardware numbers were also solid. Sales for the standard iPhone models reached $57.58 billion. High end devices like the iPhone 18 Pro and the bigger iPhone 18 Pro Max helped push these figures up by 17.5 percent from the previous year.
Demand outpaces supply for the new foldable phones
During the call, Ternus confirmed that the company simply cannot make enough of the new iPhone Duo to meet current customer interest. The supply is heavily constrained right now.
He noted that it does not have a clear timeline for when supply will finally catch up to demand. Additionally, Ternus addressed some early reports about screen defects on the new foldable model.
He clarified that only a very small percentage of devices have been returned due to display problems. The company is actively swapping out those defective units for brand new ones to keep early buyers happy.
Server costs might bring usage limits for cloud features
Artificial intelligence was a major talking point. Ternus mentioned plans to introduce usage limits on server side computing features, such as advanced photo editing and Siri AI queries.
Running complex server tasks costs money. CFO Kevan Parekh explained that on device processing is highly efficient and essentially free to run. However, pushing requests to Private Cloud Compute servers creates real inference costs.
Because this technology is still so new, the company is still figuring out the split between local and server costs. Users who need more server capacity will eventually be able to buy expanded access through an iCloud subscription, though pricing details have not been shared yet.
Privacy remains the main focus for artificial intelligence
While discussing the future of Siri, Ternus emphasized that privacy is a major selling point. The brand wants users to feel safe knowing what their digital agents can access.
Our phones hold highly personal information, including financial records, health data, and private communications. The goal is to let the assistant tap into this data securely without exposing it to third parties or even to the company itself.
This approach gives users a secure way to interact with smart tools. Leadership believes this strong focus on privacy sets its hardware apart from other tech brands building similar features.
Laptop and phone operating systems will stay separate
With recent hardware updates bringing touchscreens to Macs, some analysts asked if it plans to merge the desktop and mobile platforms. Ternus quickly shut down that idea.
He stated that the goal is to make the best possible version of each product. While features like Handoff will continue to bridge the gap between devices, there are no plans to merge iOS and macOS into a single system.
The recent MacBook updates were described as a huge leap forward, but they remain distinct computers designed for specific workflows.
Sales numbers climb in key international markets like China
The earnings report showed very strong performance in Greater China. Revenue in this region jumped by 21 percent to $17.5 billion, setting a new quarterly record.
This is a notable rebound for a market that has seen some ups and downs in recent years. The growth in China was largely driven by fresh phone upgrades and strong computer sales.
Tablet and wearable sales show a slight drop
Not every product category saw massive gains this quarter. Revenue for the iPad lineup dropped 10.4 percent down to $6.23 billion.
Similarly, the wearables, home, and accessories division slipped to $8.30 billion, down from $9.0 billion a year ago. Despite these small dips, the overall financial health of the brand remains stronger than ever heading into the busy holiday shopping season.
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