iPhone Sales Drive Apple’s Fiscal Q4 to New Record

Matthew Keys

Nov 20263 min read

iPhone Sales Drive Apple’s Fiscal Q4 to New Record

Editor's Note

TheDesk.net on State of Streaming is a syndicated partnership featuring reporting by Matthew Keys — founder and editor of TheDesk.net, covering consumer technology, media ecosystems, and digital distribution. This report analyzes Apple’s fiscal fourth-quarter results: revenue rising to $114.5 billion behind record iPhone sales ($57.6 billion), Services climbing to an all-time high of $31.6 billion, and full-year revenue reaching $478.8 billion—balanced against declining iPad and Wearables sales and opacity surrounding Apple TV and Apple One metrics following recent subscription price hikes.

Apple’s newest iPhone models have just hit the market, and they are already resulting in improved sales for the company.

On Monday, Apple disclosed its fiscal fourth quarter (Q4, coincides with calendar Q3) sales period, during which the tech company earned $114.5 billion, with most revenue associated with its phones, tablets and computers.

Net income reached $30.7 billion during the three months ending September 26, up from $27.5 billion a year earlier. Diluted earnings increased 14 percent to $2.10 per share, compared with $1.85 during the same quarter in 2025.

(Infographic by Matthew Keys for The Desk and State of Streaming)

The company’s iPhone business generated $57.6 billion in quarterly revenue, an increase of 17 percent from $49 billion a year earlier, setting a September-quarter record.

Services revenue, which includes subscriptions, digital purchases and other recurring businesses, increased 10 percent to an all-time high of $31.6 billion.

Mac revenue climbed 24 percent to $10.8 billion, while iPad sales declined 10 percent to $6.2 billion. Revenue from Wearables, Home and Accessories fell 8 percent to $8.3 billion.

Apple also reported growth across most of its geographic markets: Revenue in Greater China increased 21 percent to $17.5 billion, while European revenue grew 12 percent to $32 billion. Sales in the Americas increased 10 percent to $48.7 billion. Japan was the only geographic segment to report a decline, with revenue falling approximately 1 percent to $6.5 billion.

In a statement that accompanied the earnings report, Apple CEO John Ternus said September phone releases helped Apple reach “an al-time high, capping off our best fiscal quarter year ever.”

For its full fiscal year, Apple generated $478.8 billion in revenue, an increase of 15 percent from $416.2 billion in fiscal 2025. Annual net income rose 18 percent to $132.2 billion, while diluted earnings increased 20 percent to $8.98 per share. Apple generated $145.1 billion in operating cash flow during the fiscal year, compared with $111.5 billion the year before. Capital expenditures totaled $9 billion, down from $12.7 billion.

(Snapshot of Apple stock at time of publishing)

Annual operating cash flow reached $145.1 billion, compared with $111.5 billion in fiscal 2025. Apple repurchased $86.4 billion in shares and paid $15.7 billion in dividends and dividend equivalents during the year.

Research and development spending increased 32 percent to $45.8 billion.

Apple ended September with $36.3 billion in cash and cash equivalents and $100.6 billion in marketable securities. The company’s Board of Directors declared a quarterly dividend of $0.27 per share, payable November 16 to shareholders of record as of November 12.

Apple’s earnings report was remarkably light — just four paragraphs of data and narration, plus one additional paragraph pointing to a conference call to take place Monday afternoon well after the stock market closed for the day.

In its press release, the company offered no insight into the performance of certain apps and services, including Apple Music, Apple TV and the Apple One bundle. The price of the Apple One bundle increased across plans in August, coinciding with a price hike for Apple TV as the service incorporates more live sports.

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