AAPL · Earnings · Q4 fiscal 2026strong quarterApple Q4 fiscal 2026 earnings: iPhone and Services hit September quarter records
Apple closed its best fiscal year ever with $114.5 billion in quarterly revenue, powered by record iPhone sales and an all-time high in Services.
Alpha Finance
AAPLQ4 fiscal 2026 earnings- Revenue rose 12% to $114.5 billion, capping a full fiscal year at $478.8 billion, Apple's highest annual total ever.
- iPhone revenue jumped 17% to $57.6 billion, while Services grew 10% to $31.6 billion, both setting September quarter records.
- Diluted EPS rose 14% to $2.10, though $0.05 of that came from one-time tariff refunds that may not repeat.
The quarter in numbers
Apple reported Q4 fiscal 2026 revenue of $114.5 billion, up 12% from $102.5 billion a year ago. Net income came in at $30.7 billion, and diluted earnings per share (profit divided across all shares, including options) rose 14% to $2.10.
Gross margin, the share of revenue left after the direct cost of making products and delivering services, was 47.9%. Apple noted that tariff refunds added about 1 percentage point to that figure and $0.05 to diluted EPS, both one-time items.
What drove the results
iPhone was the clear engine, with revenue of $57.6 billion, up 17% from $49.0 billion a year ago and a new September quarter record. Services, which includes the App Store, Apple Music, iCloud and advertising, reached an all-time high of $31.6 billion, up 10% from $28.8 billion. Mac added to the momentum, growing to $10.8 billion from $8.7 billion.
Not every segment kept pace. iPad revenue slipped to $6.2 billion from $7.0 billion a year ago, and Wearables, Home and Accessories fell to $8.3 billion from $9.0 billion. Geographically, Greater China was a standout, rising to $17.5 billion from $14.5 billion, while Japan was essentially flat at $6.5 billion.
Apple generated $28 billion in operating cash flow during the quarter and returned the same amount to shareholders through buybacks and dividends. The installed base of active devices reached a new all-time high across all major product categories and geographic segments.
How the stock looks now
According to Alpha Finance data, AAPL trades at $349.51, giving the company a market cap of $5.08 trillion. The stock is near its 52-week high of $354.50 and is up 5.3% on the day of the release.
On valuation, Alpha Finance data shows a price-to-earnings ratio of 36.9x and an EV/EBITDA of 29.8x, both above the Technology sector medians of 32.3x and 19.5x respectively. The price-to-sales ratio of 10.6x also sits well above the sector median of 6.1x.
Alpha Finance's average intrinsic value estimate across five models is $215.75, which is 38.3% below the current price. The Alpha Score, a composite rating from 0 to 100, is 58 out of 100, rated STRONG. It scores especially well on profitability and quality (22.8 out of 25) but low on valuation (6.7 out of 30). The consensus analyst target price from Alpha Finance is $333.28, about 4.6% below where the stock currently trades.
| Share price | $349.51 |
|---|---|
| Market value | $5.08 trillion |
| P/E | 36.9x (sector median 32.3x (Technology)) |
| EV/EBITDA | 29.8x |
| Free cash flow yield | 2.7% |
| Alpha Score | 58 / 100 strong |
| Intrinsic value | $215.75 -38.3% vs price |
| Analyst target | $333.28 -4.6% vs price, 43 analysts |
What to watch next
The 47.9% gross margin and the $0.05 EPS lift both included a benefit from tariff refunds that Apple described as one-time. If those refunds do not repeat in the December quarter, margins and earnings could face a modest step down from this quarter's levels.
iPad and Wearables both declined year over year, two categories worth watching to see whether that reflects product timing or softer demand. Apple's CEO highlighted a broad new hardware lineup for the holiday season, including iPhone 18 Pro, iPhone 18 Pro Max and what Apple calls the iPhone Duo, as well as a new generation of home products and the first Mac with touch input.
A recent headline flagged potential changes to memory costs that could affect Apple's narrative. That is worth monitoring alongside the ongoing tariff environment, given how directly both items touched this quarter's results.
Apple delivered its best fiscal year ever, with record iPhone and Services revenue driving a strong September quarter finish. The key open question is how much of the margin and EPS strength can hold up once the one-time tariff refunds drop out of the numbers.
Change the growth, margins and discount rate and see what the stock is worth to you.
- Apple Inc. earnings release (Form 8-K), filed November 2, 2026
- AAPL on Alpha Finance: price, Alpha Score, valuation and analyst data
Written with Alpha AI from the company's SEC filing and Alpha Finance data, with every figure checked against those sources. For information only, not investment advice.
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