Apple Earnings Top Estimates
Apple earnings topped forecasts as tariff refunds and smartphone demand lifted margins and EPS, and large cash returns reshaped near-term stock flows.
KEY TAKEAWAYS
- Following the release, Apple posted fiscal Q4 revenue of $114.5 billion and EPS of $2.10.
- Tariff refunds lifted gross margin by about one percentage point and added $0.05 to EPS.
- Operating cash flow was $28.0 billion and funded $28.0 billion in shareholder returns plus a $0.27 dividend.
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Apple Inc. said in a press release on Nov. 2, 2026, that fiscal fourth-quarter revenue reached $114.5 billion, up 12% year over year, while diluted earnings per share (EPS) rose 14% to $2.10, exceeding Wall Street forecasts in CEO John Ternus’s first earnings report.
Quarterly Results, Cash Returns, and Margins
For the quarter ended Sept. 26, 2026, Apple reported operating cash flow of $28 billion, which funded $28 billion in shareholder returns. The company declared a quarterly dividend of $0.27 per share, payable Nov. 16, 2026, to shareholders of record at the close of business Nov. 12, 2026.
Apple’s gross margin was 47.9%, including a favorable impact of about one percentage point from tariff refunds. These refunds contributed $0.05 to diluted EPS, a one-time benefit that affects comparability with adjusted margin measures excluding the refund.
Context and Outlook
The results surpassed pre-release estimates of roughly $113.3 billion in revenue and $1.99 in EPS. They compare with fiscal fourth-quarter 2025 figures of $102.5 billion in revenue and $1.85 in diluted EPS. Secondary reports attributed the revenue beat to strong early demand for the iPhone 18 Pro and higher prices, which helped offset rising memory-chip costs. Some reports noted iPad sales fell short of estimates.
Apple had issued fiscal fourth-quarter guidance between Oct. 29 and 31, projecting revenue growth of 9%–11% and gross margin of 47%–48%, including the tariff-refund benefit. The guidance also cited a 2.5-percentage-point foreign-exchange headwind and expected mid-teens growth in iPhone sales.
The company scheduled an earnings conference call for 2:00 p.m. Pacific / 5:00 p.m. ET on Nov. 2, 2026.
