Apple Q4 FY2026 earnings review

Q4 net sales beat the LSEG consensus by 1.0%, but the December-quarter growth guide trailed it.

Apple · Q4 FY2026 · Published Nov 3, 2026 · By DeepCell AI · Sources

Apple Q4 FY2026 earnings review

Quarter ended September 26, 2026

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · Cover

Q4 net sales beat the LSEG consensus by 1.0%, but the December-quarter growth guide trailed it

  1. 1.Diluted EPS of $2.10 beat the LSEG consensus of $1.99, and $2.05 without tariff refunds also beat it
  2. 2.iPhone net sales rose 17.5% to $57,583M; Services net sales rose 9.8%
  3. 3.Gross margin was 47.9%, including about 1% point from tariff refunds
  4. 4.Apple guided December-quarter net sales growth of 7% to 10%, below the 11.4% LSEG consensus
  5. 5.Capital returns of $28,239M exceeded free cash flow of $25,859M in Q4

Note: Adjusted figures remove the tariff refund benefits Apple disclosed; they are not company non-GAAP measures.Source: Apple Form 8-K, Nov 2, 2026; LSEG via CNBC, Nov 2, 2026; analysis of company data

2

2 · Key takeaways

Q4 diluted EPS beat the LSEG consensus by 5.5%, and net sales beat it by 1.0%

Q4 FY2026 results vs consensus

MetricActualConsensusVarianceResult
Total net sales, LSEG$114.48B$113.39B+$1.09B / +1.0%Beat
Total net sales, Yahoo Finance$114.48B$113.63B+$0.85B / +0.7%Beat
Diluted EPS, LSEG$2.10$1.99+$0.11 / +5.5%Beat
Diluted EPS, FactSet$2.10$1.99+$0.11 / +5.5%Beat
Adjusted diluted EPS, LSEG$2.05$1.99+$0.06 / +3.0%Beat
Gross margin, LSEG47.9%47.5%+39 bpsBeat
Adjusted gross margin, LSEG46.9%47.5%-61 bpsMiss

Share price reaction

Not shown: CNBC said the stock was little changed after hours; no close was confirmed by two sources when this deck was built.

Note: Variance is actual less consensus. Adjusted figures remove tariff refunds of $0.05 per share and about one point of margin.Source: Apple Form 8-K, Nov 2, 2026; LSEG via CNBC, Nov 2, 2026; Yahoo Finance; FactSet via Goldman Sachs preview; analysis of company data

3

3 · Q4 versus consensus

The December-quarter growth guide midpoint of 8.5% trailed the LSEG consensus of 11.4%

December-quarter guidance vs consensus

MetricGuidanceConsensusVariancevs Street
Net sales growth (midpoint), LSEG8.5%11.4%-290 bpsMiss
Net sales (midpoint), Yahoo Finance$155.98B$153.66B+$2.32B / +1.5%Beat
Net sales (midpoint), FactSet$155.98B$152.20B+$3.78B / +2.5%Beat

Q4 FY2026 actual vs Jul 30 guidance

MetricJul 30 guidanceQ4 actualVariance
Net sales growth9%–11%11.7%+172 bps
Gross margin47%–48%47.9%+39 bps
Operating expenses$19.1B–$19.4B$19,189M-$61M
Effective tax rate16.5%15.0%-149 bps

Note: Variance uses the guide midpoint on the Q1 FY2026 base. Apple gave only a growth range; no other December-quarter guide was found.Source: Apple Form 8-K, Nov 2, 2026; Apple Q3 FY2026 call, Jul 30, 2026; LSEG via CNBC, Nov 2, 2026; Yahoo Finance; FactSet via Goldman Sachs preview; analysis of company data

4

4 · Guidance

Total net sales rose 11.7% and diluted EPS rose 13.5%

  1. iPhone led growthiPhone net sales rose 17.5% and made up 50.3% of net sales.
  2. EPS rose faster than net incomeNet income rose 11.8%, while diluted shares fell 1.6%.
  3. R&D rose fastestR&D expense rose 32.3% to $11,730M.

Key figures in $M and YoY % for Q4 FY2026 vs Q4 FY2025

$M unless notedQ4 FY2025Q4 FY2026YoY
Total net sales$102,466M$114,477M11.7%
Operating income$32,427M$35,631M9.9%
Net income$27,466M$30,711M11.8%
Diluted EPS$1.85$2.1013.5%

Note: R&D is research and development.Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

5

5 · Q4 at a glance

Mac net sales beat the LSEG consensus by 12.3%, while iPad and Wearables missed it

Net sales by category vs LSEG consensus

$M, Q4 FY2026

CategoryQ4 FY2025Q4 FY2026YoYLSEGvs LSEG
iPhone$49,025M$57,583M17.5%$56,540M+1.8%
Mac$8,726M$10,792M23.7%$9,610M+12.3%
iPad$6,952M$6,229M-10.4%$6,700M-7.0%
Wearables$9,013M$8,300M-7.9%$9,060M-8.4%
Services$28,750M$31,573M9.8%$31,580M-0.0%
Services net sales were -$7M from the LSEG consensus

Note: Wearables is Wearables, Home and Accessories. Mac consensus has one source (LSEG via CNBC).Source: Apple Form 8-K, Nov 2, 2026; LSEG via CNBC, Nov 2, 2026; Reuters via Moneycontrol; analysis of company data

6

6 · Category overview

7 · Net sales change by category

Greater China net sales rose 21.0%, while Japan net sales fell 1.4%

Net sales growth by reportable segment

% change YoY, Q4 FY2026

YoY · Greater China: 21.0%YoY · Rest of Asia Pacific: 15.0%YoY · Europe: 11.5%YoY · Americas: 10.2%YoY · Japan: -1.4%Greater ChinaRest of AsiaPacificEuropeAmericasJapan-5.0%0.0%10.0%25.0%15.0%11.5%10.2%-1.4%
Greater China net sales rose 21.0% to $17,539M

Note: Greater China includes mainland China, Hong Kong and Taiwan.Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

8

8 · Net sales by region

Net income rose 11.8% as gross margin dollars rose 13.4%, partly offset by operating expenses

Net income

$M, Q4 FY2025 to Q4 FY2026

$M · Q4 FY2025: $27,466M$M · Gross margin: $6,479M$M · Operating expenses: -$3,275M$M · Other income: $127M$M · Income taxes: -$86M$M · Q4 FY2026: $30,711MQ4 FY2025GrossmarginOperatingexpensesOtherincomeIncometaxesQ4 FY2026$0M$10,000M$20,000M$30,000M$40,000M$27,466M$6,479M-$3,275M$127M-$86M$30,711M
Operating expenses rose 20.6%, led by R&D

Note: Steps are YoY changes; higher operating expenses and income taxes show as reductions.Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

9

9 · Net income bridge

Gross margin rose 71 bps to 47.9%, while operating margin fell 52 bps

Gross margin and operating margin

% of total net sales, Q4 FY2025 vs Q4 FY2026

Gross margin · Q4 FY2025: 47.2%Gross margin · Q4 FY2026: 47.9%Operating margin · Q4 FY2025: 31.6%Operating margin · Q4 FY2026: 31.1%Q4 FY2025Q4 FY20260.0%20.0%40.0%60.0%47.2%47.9%31.6%31.1%

Gross marginOperating margin

R&D rose to 10.2% of net sales from 8.7%

Note: Gross margin includes about one point from tariff refunds. Operating margin is operating income divided by total net sales.Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

10

10 · Margins

Apple returned $28,239M to shareholders in Q4, more than its $25,859M of free cash flow

Cash flow and capital returns

$M, Q4 FY2026

$M · Operating cash flow: $28,101$M · Capex: $2,242$M · Free cash flow: $25,859$M · Repurchases: $24,296$M · Dividends: $3,943Operating cashflowCapexFree cash flowRepurchasesDividends$0M$10,000M$20,000M$30,000M$35,000M$3,943
Capex of $2,242M was below the LSEG estimate of $3,330M

Note: Q4 cash flows are the fiscal year less the first nine months. Free cash flow is operating cash flow less capex (payments for PP&E).Source: Apple Form 8-K, Nov 2, 2026; Apple Form 10-Q, Jul 31, 2026; LSEG via CNBC, Nov 2, 2026; analysis of company data

11

11 · Cash flow and capital returns

Products gross margin rose to 37.2% and Services gross margin rose to 76.0%

Products and Services gross margin

% of each line’s net sales, Q4 FY2025 vs Q4 FY2026

Products · Q4 FY2025: 36.2%Products · Q4 FY2026: 37.2%Services · Q4 FY2025: 75.3%Services · Q4 FY2026: 76.0%Q4 FY2025Q4 FY20260.0%25.0%50.0%75.0%90.0%36.2%37.2%75.3%76.0%

ProductsServices

Services made up 27.6% of total net sales

Note: Gross margin percentage is net sales less cost of sales, divided by net sales, for each line.Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

12

12 · Products and Services margin

Net cash rose to $56,824M as total debt fell to $80,111M

Cash, debt and equity

$M, Sep 27, 2025 vs Sep 26, 2026

$MSep 27, 2025Sep 26, 2026
Cash and marketable securities$132,420M$136,935M
Total debt$98,657M$80,111M
Total shareholders’ equity$73,733M$112,093M
Net cash$33,763M$56,824M
Inventories rose to $14,541M from $5,718M

Note: Total debt is commercial paper plus current and non-current term debt. Net cash is cash and marketable securities less total debt.Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

13

13 · Balance sheet

December-quarter estimates depend on memory costs, supply and tariff refunds, which added $0.05 to Q4 EPS

Indicator
What to watch
Implication
Q4 reading
Memory costs
Component prices keep rising
Gross margin estimates could fall
Gross margin was 47.9%
Supply
Chip supply stays tight
Net sales could trail demand
iPad net sales fell 10.4%
Tariff refunds
Refunds shrink or end
EPS growth could slow
Refunds added $0.05 per share
Services
Growth keeps slowing
Mix could weigh on margin
Services net sales rose 9.8%

Note: These are analytical watch points, not company targets.Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

14

14 · Risks to estimates

15 · Supporting analysis (1/4)

Appendix: supporting analysis for profit and margins

ClaimEvidenceCalculation
Operating income rose$32,427M to $35,631M (9.9%)Statements of operations
Effective tax rate fell16.3% in Q4 FY2025 and 15.0% in Q4 FY2026Income taxes divided by pretax income
Net margin held near flat26.8% to 26.8%Net income divided by total net sales
SG&A rose slowlySelling, general and administrative expense rose 5.8% to $7,459MStatements of operations

Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

16

16 · Supporting analysis (2/4)

Appendix: full year, cash flow and balance sheet support

ClaimEvidenceCalculation
FY2026 net sales rose$478,834M (15.1%); diluted EPS $8.98 (20.4%)Twelve months ended Sep 26, 2026
Repurchases were the largest use of cashRepurchases $24,296M; dividends $3,943M in Q4Fiscal year less nine months
Operating cash flow fell$29,728M to $28,101M (5.5% decline)Fiscal year less nine months
Dividend declaredQuarterly dividend $0.27 per share; commercial paper $1,997M at Sep 26, 2026Release text; balance sheet

Source: Apple Form 8-K, Nov 2, 2026; Apple Form 10-Q, Jul 31, 2026; analysis of company data

17

17 · Supporting analysis (3/4)

Appendix: watch items behind guidance and risks

ClaimEvidenceCalculation
Implied December-quarter net sales$153.8B to $158.1B on a $143.8B baseGrowth range applied to Q1 FY2026
LSEG growth implies higher net sales$160.1B at 11.4% growthLSEG growth applied to Q1 FY2026
Inventories rose$5,718M to $14,541MBalance sheet
Diluted share count fell14,630 million (1.6% decline)Statements of operations

Source: Apple Form 8-K, Nov 2, 2026; Apple Form 10-Q, Jan 30, 2026; LSEG via CNBC, Nov 2, 2026; analysis of company data

18

18 · Supporting analysis (4/4)

Appendix: net sales and operating expense detail

Net sales by reportable segment, $M and YoY %

$M unless notedQ4 FY2025Q4 FY2026YoY
Americas$44,192M$48,680M10.2%
Europe$28,703M$32,008M11.5%
Greater China$14,493M$17,539M21.0%
Rest of Asia Pacific$8,442M$9,710M15.0%

Operating expenses, $M and YoY %

$M unless notedQ4 FY2025Q4 FY2026YoY
Research and development$8,866M$11,730M32.3%
Selling, general and administrative$7,048M$7,459M5.8%
Total operating expenses$15,914M$19,189M20.6%

Note: Japan net sales are in the data sheet.Source: Apple Form 8-K, Nov 2, 2026; analysis of company data

19

19 · Appendix: financial detail

Appendix: sources

  • Filing: Apple Form 8-K, Nov 2, 2026 — https://www.sec.gov/Archives/edgar/data/320193/000032019326000024/a8-kex991q4202609262026.htm
  • Filing: Apple Form 10-Q, Jul 31, 2026 — https://www.sec.gov/Archives/edgar/data/320193/000032019326000020/aapl-20260627.htm
  • Filing: Apple Form 10-Q, Jan 30, 2026 — https://www.sec.gov/Archives/edgar/data/320193/000032019326000006/aapl-20251227.htm
  • Prior guidance: Apple Q3 FY2026 call, Jul 30, 2026 — https://www.alphaspread.com/security/nasdaq/aapl/earnings-calls/q3-2026
  • Consensus and December-quarter guidance: LSEG via CNBC, Nov 2 — https://www.cnbc.com/2026/11/02/apple-aapl-q4-2026-earnings-live-updates.html
  • Consensus (cross-check): Reuters citing LSEG via Moneycontrol, Nov 2 — https://www.moneycontrol.com/news/business/companies/apple-results-beat-wall-street-expectations-on-strong-iphone-sales-14066820.html
  • Consensus (cross-check): Yahoo Finance average estimates, read Nov 3 — https://finance.yahoo.com/quote/0R2V.L/analysis/
  • Consensus (cross-check): FactSet cited in a Goldman Sachs preview — https://unhidea.com/en/articles/research-5251fecc1305487498f48f68dced3006-en

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20

20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from Apple's Form 8-K (Exhibit 99.1) of November 2, 2026 and its Forms 10-Q for the quarters ended December 27, 2025 and June 27, 2026. Guidance comes from Apple's earnings calls as reported by CNBC and a published transcript. Consensus estimates (LSEG via CNBC and Reuters, Yahoo Finance, FactSet via a Goldman Sachs preview) are third-party data, credited on the sources page. We have not independently verified third-party data and make no warranty that any information here is accurate, complete or timely.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Past performance. Past results, including those for Q4 FY2026, are not a reliable indicator of future results.

Adjusted measures. Adjusted figures in this deck remove the tariff refund benefits Apple disclosed in its release. They are our calculation, not Apple measures, and the gross margin benefit is approximate.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by Apple Inc. and does not represent Apple's views. Company names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings and consult a qualified professional adviser before making any investment decision.

Date of analysis. The analysis reflects information available as of November 3, 2026. It will not be updated for later events, and views may change without notice.

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21

21 · Important disclosures

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