Apple reported record financial results for its September quarter under new CEO John Ternus, demonstrating strong momentum despite raising prices on multiple popular devices [1]. The company achieved revenue of $114.5 billion, representing a 12% year-over-year increase and beating Wall Street estimates, while earnings per share rose 14% to $2.10, also topping analyst expectations [1]. For the full fiscal year, Apple achieved record revenue of $478.8 billion, up 15% from the prior year, with gross margin at 47.9%, broadly in line with expectations [1].
The strong results were driven by robust performance across key product categories. iPhone revenue grew 17% to $57.6 billion in the September quarter, despite the period including only eight days of iPhone 18 Pro sales [1]. CEO Ternus expressed enthusiasm about customer response to the new lineup, though analysts at JPMorgan, Wedbush, and Evercore have noted that the iPhone 17's exceptionally strong upgrade cycle creates a difficult comparison for this year's models [1]. Mac sales demonstrated particularly impressive growth, surging 24% to $10.8 billion, powered by the MacBook Neo and MacBook Pro despite significant supply constraints [1]. Ternus attributed the stronger Mac demand to what he described as the Mac's "AI moment," noting that "We have never sold more Macs in a fiscal year than we did in fiscal '26" [1].
Apple's expansion into new product categories and AI capabilities represents a significant strategic initiative. The company launched its iPhone 18 Pro lineup alongside a revamped, AI-powered Siri, with Ternus stating that "our products are the best platform for AI" [1]. Apple's users make more than 2.5 billion Siri requests daily, underscoring the scale of the company's AI engagement [1]. However, the company faces supply chain challenges, particularly with its first foldable iPhone, the Duo, which remains in short supply with delivery estimates on some orders stretching into 2027 [1]. Ternus acknowledged that "The Duo is constrained as of today" but stated that "the ramp is going well, and we're working really hard to get it into customers' hands as quickly as possible" [1].
Despite achieving record results, Apple faces significant cost pressures from the supply chain. Ternus noted that the stronger-than-expected September-quarter results came despite "supply constraints and FX headwinds" [1]. A major challenge is surging memory-chip prices driven in part by the AI buildout, with some flash-memory prices climbing more than 500% from 2023 levels according to a Wall Street Journal report [1].
CONCLUSION
Apple's record September quarter results under new CEO John Ternus demonstrate strong demand for iPhones and Macs, with revenue and earnings per share both exceeding Wall Street expectations despite price increases and supply chain headwinds [1]. The company's strategic focus on AI capabilities and new product categories like the foldable iPhone Duo positions it for continued growth, though rising memory-chip costs and supply constraints present ongoing challenges to profitability and product availability [1].