Isophoric News · Tuesday, November 3, 2026
Apple reports record September-quarter revenue of $114.5 billion and, on its earnings call, warns that memory costs will cut its margin
Apple reported revenue of $114.5 billion for its fiscal fourth quarter, which ended Sept. 26, up 12 percent from a year earlier, with diluted earnings of $2.10 a share, according to the company's release on Monday. Analysts had expected $113.4 billion in revenue and $1.99 a share, according to a FactSet poll cited by the Guardian. On the earnings call, Apple forecast a gross margin of 45 to 46 percent for the December quarter, down from 47.9 percent, mainly because of higher memory costs, MacRumors, TechCrunch and 9to5Mac reported. Chief executive John Ternus, on his first earnings call in the job, called memory pricing "unprecedented" and said Apple expects memory costs to keep rising beyond December, MacRumors reported. Apple's inventory rose to $14.54 billion from $5.72 billion a year earlier, and Ternus said manufacturing purchase obligations grew by $33 billion from the June quarter to the September quarter, TechCrunch reported. Chief operating officer Sabih Khan said the iPhone Duo was supply constrained and that it was "really hard to predict" when supply would meet demand, according to TechCrunch; asked whether prices could rise again, Khan gave no direct answer, MacRumors reported. Apple's release said the quarter's gross margin included about 1 percentage point, and earnings 5 cents a share, from tariff refunds.
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