Apple fiscal fourth quarter 2026 earnings explained: products, regions and valuation multiples
Apple earned $30.7 billion under GAAP in the quarter ended September 26, 2026, against $29.8 billion in the quarter before, on revenue of $114.5 billion. A look at its products, regions, tariff refunds and valuation.
Apple reported results for the fiscal fourth quarter of 2026 on November 2, 2026. Apple's fiscal year ends on the last Saturday of September, so this quarter covers the three months ended September 26, 2026, and it closes out the fiscal year. Revenue was $114,477 million and net income under GAAP, the standard US accounting rules, was $30,711 million, as reported by Apple. This article compares the quarter with the fiscal third quarter, which ended June 27, 2026. Every figure is sourced and dated, and every number worked out by us is labelled as a Dalsna Finance calculation. [1][2][3]
These results come from Apple's earnings release, attached to a current report on SEC EDGAR. Its annual report for fiscal 2026, which may say more about the reasons behind the year's changes, had not been filed when this was written. So where the release gives no reason for a change, this article gives none either. Our earlier article covers the fiscal third quarter. [1]
Apple in brief
Apple designs and sells iPhone, iPad, Mac, AirPods, Apple Watch and Apple Vision Pro, and it runs services such as the App Store, Apple Music, Apple Pay, iCloud and Apple TV. Its release traces the company's role in personal technology back to the Macintosh in 1984 and says it has more than 150,000 employees. Its common stock trades on the Nasdaq Stock Market under the ticker AAPL. [1][4]
John Ternus took over as chief executive from Tim Cook on September 1, 2026, less than four weeks before the quarter ended, and Cook became Executive Chair of the board, according to an amended Apple filing. This is the first earnings report under Ternus. In the release he said Apple was going into the holiday season with the iPhone Duo, iPhone 18 Pro and iPhone 18 Pro Max, new hardware for the home, touch on the Mac for the first time and the new Siri AI. [4][1][5]
What Apple sells: products and services
Apple splits its sales into Products and Services. Products are reported in four categories: iPhone, Mac, iPad and Wearables, Home and Accessories. Services is the fifth line. In the fourth quarter Products brought in $82,904 million and Services $31,573 million. iPhone alone was $57,583 million, about half of all revenue (Dalsna Finance calculation: $57,583 million divided by $114,477 million is 50.3%). [1]
Against the same quarter a year earlier, total revenue rose 12%, as reported by Apple, which called it a September quarter record for the company and for iPhone and an all time high for Services. Against the third quarter, every category grew, and iPhone grew the most, by $3,331 million or 6.1% (Dalsna Finance calculation). Against a year earlier, iPad and Wearables, Home and Accessories were lower. [1][2]
| Category | Q3 FY2026 | Q4 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| iPhone | 54,252 | 57,583 | Up 3,331 | Up 6.1% |
| Mac | 10,352 | 10,792 | Up 440 | Up 4.3% |
| iPad | 6,191 | 6,229 | Up 38 | Up 0.6% |
| Wearables, Home and Accessories | 7,883 | 8,300 | Up 417 | Up 5.3% |
| Services | 30,739 | 31,573 | Up 834 | Up 2.7% |
| Total net sales | 109,417 | 114,477 | Up 5,060 | Up 4.6% |
As reported by Apple in its third and fourth quarter releases. The change columns are a Dalsna Finance calculation: Change is Q4 minus Q3 and Change (%) is that change divided by Q3, times 100, worked from the figures as filed and rounded to one decimal at the end. [1][2]
Five regional segments
Apple's reportable segments are regions, not products: the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. The Americas was the largest at $48,680 million in the fourth quarter. Against the third quarter, Rest of Asia Pacific grew the most in percentage terms, Greater China fell by $1,277 million and Japan was little changed (Dalsna Finance calculation). [1][2]
Against a year earlier, Greater China sales rose to $17,539 million from $14,493 million and Japan was the only region that was lower, as reported by Apple. Fox Business reported that Greater China sales still fell short of analysts' estimates. The release gives no reasons for the regional changes, so we do not offer any. [1][5]
| Segment | Q3 FY2026 | Q4 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| Americas | 45,781 | 48,680 | Up 2,899 | Up 6.3% |
| Europe | 29,395 | 32,008 | Up 2,613 | Up 8.9% |
| Greater China | 18,816 | 17,539 | Down 1,277 | Down 6.8% |
| Japan | 6,554 | 6,540 | Down 14 | Down 0.2% |
| Rest of Asia Pacific | 8,871 | 9,710 | Up 839 | Up 9.5% |
As reported by Apple in its third and fourth quarter releases. The change columns are a Dalsna Finance calculation, worked as in the table above. [1][2]
The numbers, quarter over quarter
Revenue rose to $114,477 million from $109,417 million, but operating income, the profit from running the business before interest, investments and taxes, edged down to $35,631 million from $35,695 million. Net income still rose to $30,711 million from $29,789 million, mostly because the provision for income taxes fell to $5,424 million from $6,478 million. Tax took 15.0% of income before taxes against 17.9% in the third quarter (Dalsna Finance calculation). The release does not say why. Profit margin, net income divided by revenue, was 26.8% against 27.2% (Dalsna Finance calculation). [1][2]
Gross margin, revenue minus the cost of the products and services sold, was 47.9% of revenue against 50.1% in the third quarter. Apple said the fourth quarter figure included a favourable effect of approximately 1 percentage point from tariff refunds, half the approximately 2 points it gave for the third quarter, and that the refunds added $0.05 to diluted EPS. Fox Business reported Ternus saying memory costs were higher than in the June quarter and that the results came despite "supply constraints and FX headwinds." Research and development spending was $11,730 million, almost the same as the quarter before. [1][2][5]
Apple reports its results only under GAAP. Its release gives no adjusted, or non GAAP, earnings figure, so this article has no adjusted earnings line and no adjusted multiples. The tariff refund effect is pointed out instead, and taken out of the operating margin case further down. [1]
| Measure | Q3 FY2026 | Q4 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| Total net sales | 109,417 | 114,477 | Up 5,060 | Up 4.6% |
| Gross margin | 54,770 | 54,820 | Up 50 | Up 0.1% |
| Research and development | 11,729 | 11,730 | Up 1 | Up 0.0% |
| Selling, general and administrative | 7,346 | 7,459 | Up 113 | Up 1.5% |
| Operating income | 35,695 | 35,631 | Down 64 | Down 0.2% |
| Other income or expense, net | 572 | 504 | Down 68 | Down 11.9% |
| Provision for income taxes | 6,478 | 5,424 | Down 1,054 | Down 16.3% |
| Net income (GAAP) | 29,789 | 30,711 | Up 922 | Up 3.1% |
| Gross margin percentage | 50.1% | 47.9% | Down 2.2 percentage points | Not meaningful |
| Operating margin | 32.6% | 31.1% | Down 1.5 percentage points | Not meaningful |
| Profit margin | 27.2% | 26.8% | Down 0.4 percentage points | Not meaningful |
| Diluted shares (millions) | 14,714.7 | 14,630.3 | Down 84.4 | Down 0.6% |
As reported by Apple, except these Dalsna Finance calculations: the three margins (each line divided by total net sales) and the change columns. Change is Q4 minus Q3, in percentage points for margins. Change (%) divides it by Q3, times 100, rounded to one decimal at the end. It is not meaningful for margins, which are already percentages. Diluted shares are the weighted average used for EPS. [1][2]
The full fiscal year
For fiscal 2026 as a whole, the twelve months ended September 26, 2026, Apple reported net sales of $478,834 million against $416,161 million in fiscal 2025, a rise of 15.1% (Dalsna Finance calculation). Net income was $132,175 million against $112,010 million, and diluted EPS was $8.98 against $7.46, as reported by Apple. iPhone brought in $254,098 million of the year's sales and Services $123,301 million. [1]
Cash and shareholder returns
Cash generated by operating activities was $145,097 million in fiscal 2026 and $116,996 million in its first nine months, so about $28,101 million came in the fourth quarter (Dalsna Finance calculation). On the same basis, Apple paid $24,296 million in cash for repurchases of its common stock and $3,943 million for dividends and dividend equivalents in the quarter. In the release chief financial officer Kevan Parekh said "We generated $28 billion in operating cash flow during the quarter, allowing us to return $28 billion to shareholders." [1][2]
The board declared a dividend of $0.27 a share, payable on November 16, 2026 to shareholders of record on November 12. At September 26, 2026 Apple held $136,935 million of cash, cash equivalents and marketable securities, current and non current, against $78,114 million of term debt and $1,997 million of commercial paper (Dalsna Finance calculation for the sums, from the balance sheet in the release). [1]
Earnings per share
Earnings per share, or EPS, is profit divided by the number of shares. The diluted figure also counts shares that could be issued under stock awards. Apple reported diluted EPS of $2.10 for the fourth quarter, up 14% from $1.85 a year earlier, and $2.02 for the third quarter. Dividing net income by the diluted share count Apple reports gives the same results. Apple said the fourth quarter figure included a favourable effect of $0.05 from tariff refunds, against $0.11 in the third quarter. [1][2]
| Quarter | Net income (GAAP) | Diluted shares | Net income divided by shares | Diluted EPS as reported |
|---|---|---|---|---|
| Q3 FY2026 | 29,789 | 14,714.7 | $2.02 | $2.02 |
| Q4 FY2026 | 30,711 | 14,630.3 | $2.10 | $2.10 |
Net income, shares and reported EPS as reported by Apple. The division column is a Dalsna Finance calculation, using the share counts in thousands as filed and rounded to the cent. Apple reports no adjusted EPS. [1][2]
- Diluted EPS (GAAP): Tariff refunds added $0.11 in Q3 and $0.05 in Q4, as reported by Apple.
| Diluted EPS (GAAP) | |
|---|---|
| Q3 FY2026 | $2.02 |
| Q4 FY2026 | $2.10 |
As reported by Apple. The arithmetic is in the table above. Apple reports no adjusted EPS, so there is no second series. [1][2]
What the market values Apple at
Market capitalization, or market cap, is what the stock market values the whole company at: the share price times the number of shares. Apple shares closed at $338.32 on Monday, November 2, 2026, as reported by StockAnalysis. Apple's call on these results began at 2:00 p.m. Pacific time that day, after the 4:00 p.m. Eastern close, so the price was set before the call and may not reflect these results. [6][1]
No annual report has been filed yet, so the latest filing cover with a share count is the third quarter report, which lists 14,594,180,000 shares of common stock outstanding as of July 17, 2026. Apple has one class of common stock. That gives a market cap of about $4,937.5 billion, or about $4.94 trillion (Dalsna Finance calculation). Every multiple and share price below uses this one share count. The balance sheet in the release shows a lower 14,532,259,000 shares at September 26, 2026. [3][6][1]
- Closing price of $338.32 on November 2, 2026, as reported by StockAnalysis
- Times 14,594,180,000 shares outstanding on July 17, 2026, from the cover of the third quarter report
Market cap of about $4,937,503.0 million, or about $4.94 trillion
Dalsna Finance calculation, rounded at the end. The multiples below divide the unrounded market cap. [6][3]
Six valuation multiples
The price to earnings ratio, or P/E, is market cap divided by a year of earnings. It shows how many dollars the market is paying for each dollar of yearly profit. Annualised means one quarter multiplied by four, so it assumes the fourth quarter's conditions lasted a full year. Net income of $30,711 million times 4 is $122,844 million, which gives an annualised P/E of 40.2 (Dalsna Finance calculation). Apple's first quarter, which includes the holiday season, has historically been its biggest, so one quarter times four is only a rough guide to a year. [1][6][3]
A forward P/E uses an estimate of future earnings. We found no fiscal 2027 earnings estimate that we could check against a dated original report, and Apple's release gives no earnings guidance. We use no estimate, so the forward P/E is not calculated. [1]
A trailing P/E, sometimes called a historical P/E, uses the last four reported quarters. Here those four quarters are fiscal 2026 itself, with net income of $132,175 million, which gives a trailing P/E of 37.4 (Dalsna Finance calculation). Because Apple reports no adjusted earnings, the three adjusted multiples are not applicable. [1][6][3]
- Fourth quarter fiscal 2026 net income of $30,711 million times 4 is $122,844 million
- Market cap of $4,937,503.0 million divided by $122,844 million
Annualised P/E of 40.2
Dalsna Finance calculation, using unrounded figures and rounded to one decimal. [1][6][3]
- Net income over the four quarters to September 26, 2026, which is fiscal 2026, was $132,175 million
- Market cap of $4,937,503.0 million divided by $132,175 million
Trailing P/E of 37.4
Dalsna Finance calculation, using unrounded figures and rounded to one decimal. [1][6][3]
| Measure | Earnings used | Formula | Result |
|---|---|---|---|
| Annualised P/EUses Calculation 4: Annualised P/E | $122,844 million (Q4 FY2026 net income of $30,711 million times 4) | $4,937,503.0 million divided by $122,844 million | 40.2 |
| Annualised adjusted P/E | Apple reports no adjusted earnings | Not applicable | Not applicable |
| Forward P/E | No verified published estimate used | Not calculated | Not calculated |
| Forward adjusted P/E | Apple reports no adjusted earnings | Not applicable | Not applicable |
| Trailing P/E (fiscal 2026)Uses Calculation 5: Trailing P/E | $132,175 million of net income | $4,937,503.0 million divided by $132,175 million | 37.4 |
| Trailing adjusted P/E | Apple reports no adjusted earnings | Not applicable | Not applicable |
Dalsna Finance calculation. Market cap is $338.32 times 14,594,180,000 shares, about $4,937,503.0 million. Multiples are rounded to one decimal. The forward P/E is not calculated and the adjusted multiples do not apply, as explained above. [6][3][1]
The last four quarters
Each quarter's net income and operating income come from Apple's own releases. Net income added up to $132,175 million and operating income to $158,063 million, the same as the full year totals in the fourth quarter release (Dalsna Finance calculation for the sums). The first quarter, the three months ended December 27, 2025, was much the largest, which fits what Apple's quarterly report says about seasonality: Apple has historically sold more in its first quarter, partly because of holiday demand. [7][8][2][1][3]
| Quarter | Quarter ended | Net income (GAAP) | Operating income |
|---|---|---|---|
| Q1 FY2026 | December 27, 2025 | 42,097 | 50,852 |
| Q2 FY2026 | March 28, 2026 | 29,578 | 35,885 |
| Q3 FY2026 | June 27, 2026 | 29,789 | 35,695 |
| Q4 FY2026 | September 26, 2026 | 30,711 | 35,631 |
| Total, four quarters | Not applicable | 132,175 | 158,063 |
As reported by Apple in its releases for the four quarters of fiscal 2026. The totals are a Dalsna Finance calculation and match the full year figures Apple reported. Apple reports no adjusted earnings, so operating income is shown as the second measure. [7][8][2][1]
| Net income (GAAP) | Operating income | |
|---|---|---|
| Q1 FY2026 | $42,097m | $50,852m |
| Q2 FY2026 | $29,578m | $35,885m |
| Q3 FY2026 | $29,789m | $35,695m |
| Q4 FY2026 | $30,711m | $35,631m |
As reported by Apple. Every quarter is reported, none is worked out. The four quarter total is not charted. [7][8][2][1]
Two base cases: the fourth quarter held flat for a year
Suppose revenue stayed at the fourth quarter's level for a full year, with no growth and no decline: $114,477 million times 4, or $457,908 million. At the fourth quarter's profit margin that gives $122,844 million of net income, or $8.42 per share on the cover share count (Dalsna Finance calculation). [1][3]
Two items helped the quarter. Other income, which sits below the operating line, was a gain of $504 million. And Apple said tariff refunds added approximately 1 percentage point to gross margin. Taking 1% of the quarter's $114,477 million of revenue gives about $1,144.8 million of refunds inside operating income (Dalsna Finance calculation, approximate because Apple's figure is approximate). Operating income less that amount is $34,486.2 million, an operating margin of 30.1%. Held flat for a year that is $137,944.9 million, or $9.45 per share. This case leaves out taxes and other income, so it is a pre tax figure and higher than earnings would be. [1][3]
The net margin case is simply the fourth quarter annualised, so at the annualised P/E it returns the November 2, 2026 close of $338.32 by construction. The other cells only show how the price moves when the same earnings are given a different multiple. The forward P/E was not calculated and Apple has no adjusted multiples, so those have no column. [1][6]
- Fourth quarter fiscal 2026 total net sales of $114,477 million
- Times 4, with no growth and no decline
$457,908 million of revenue a year
Dalsna Finance calculation. Hypothetical arithmetic for illustration only. These are not forecasts, price targets or investment advice. [1]
- Apple's stated favourable effect of approximately 1 percentage point on gross margin
- Times fourth quarter total net sales of $114,477 million is about $1,144.8 million
- Operating income of $35,631 million less $1,144.8 million is $34,486.2 million, which divided by $114,477 million is an operating margin of 30.1%
About $1,144.8 million of refunds and an operating margin of 30.1% without them
Dalsna Finance calculation, approximate because Apple gave the effect as approximately 1 point. Apple's third quarter report says it records tariff refunds as a reduction of products cost of sales. [1][3]
- Net margin case: $457,908 million at the net margin ($30,711 million divided by $114,477 million, unrounded) is $122,844 million
- Operating margin case: $457,908 million at the operating margin without tariff refunds ($34,486.2 million divided by $114,477 million, unrounded) is $137,944.9 million
- Each divided by 14,594,180,000 shares
$8.42 per share in the net margin case and $9.45 in the operating margin case
Dalsna Finance calculation, using unrounded figures and rounded at the end. Hypothetical arithmetic for illustration only. These are not forecasts, price targets or investment advice. [1][3]
Current price: $343.86, as of 12:09 PM ET on November 6, 2026, from the latest quote on our Apple Inc. page (AAPL).
| Base case | Year of earnings (US dollars in millions) | Per share | At annualised P/E of 40.2 | At trailing P/E of 37.4 |
|---|---|---|---|---|
| Net margin caseUses Calculation 9: Base case earnings, net margin and operating margin, Calculation 4: Annualised P/E and Calculation 5: Trailing P/E | 122,844 | $8.42 | $338.32 (1.6% lower) | $314.44 (8.6% lower) |
| Operating margin case, without tariff refundsUses Calculation 9: Base case earnings, net margin and operating margin, Calculation 8: Tariff refunds in dollars, Calculation 4: Annualised P/E and Calculation 5: Trailing P/E | 137,944.9 | $9.45 | $379.91 (10.5% higher) | $353.09 (2.7% higher) |
Dalsna Finance calculation. Implied price is the multiple times a year of earnings divided by 14,594,180,000 shares, unrounded, rounded to the cent. Revenue is $114,477 million times 4. The operating margin case is before taxes and other income, so it is not like for like with the earnings behind the P/E values. The forward P/E was not calculated. [1][3][6]
Each percentage compares that hypothetical price with the price above, worked out from the rounded prices when this page was built. It is arithmetic, not a forecast.
Net margin case
Operating margin case, without tariff refunds
These are illustrations from the base case earnings held flat and the reference price shown, not forecasts or advice. Green bars sit above the reference price, red bars below and grey bars within 0.5% of it. The dashed line marks the reference price.
- Operating margin case: Without tariff refunds, before taxes and other income.
| Net margin case | Operating margin case | |
|---|---|---|
| Ann P/E 40.2 | $338.32 | $379.91 |
| Trail P/E 37.4 | $314.44 | $353.09 |
Dalsna Finance calculation, the four prices from the table above, at the annualised (Ann) and trailing (Trail) P/E. The forward P/E was not calculated and Apple has no adjusted multiples, so they have no bars. [1][3][6]
What management said
Apple's release gives no revenue or earnings outlook, and we found no full year revenue figure from management in a dated public source that could be used as a scenario, so this article has no management revenue scenarios. Fox Business reported Ternus saying that the iPhone Duo was supply constrained and that Apple could not yet say when supply would catch up with demand. [1][5]
What to watch
Apple's annual report for fiscal 2026 will show whether the company explains what moved the fourth quarter, the lower tax rate among it. The fiscal first quarter report, covering the holiday season, will show whether tariff refunds still helped gross margin, whether memory costs weighed on it and whether iPhone Duo supply caught up with demand. [1][5]
Several legal matters were open as of Apple's third quarter report. On June 30, 2026 the US Supreme Court agreed to review the legal standard for civil contempt in Epic Games' case over App Store rules. The European Commission's Digital Markets Act investigations and a US Department of Justice antitrust lawsuit were also continuing, and Apple said it believes it complies with the Digital Markets Act and has substantial defenses in the Justice Department case. [3]
How these figures were made: inputs come from Apple's releases for the four quarters of fiscal 2026, its third quarter report and its September 1, 2026 amended filing on SEC EDGAR, plus the dated closing price and the Fox Business report named above. Calculations use unrounded inputs and are rounded only at the end, with multiples and margins to one decimal, per share figures and prices to the cent and dollar amounts in millions. [7][8][2][1][3][4][6][5]
Companies in this article: Apple Inc. (AAPL)
Sources
- Apple reports fourth quarter results (Form 8-K, Exhibit 99.1)
- Apple reports third quarter results (Form 8-K, Exhibit 99.1)
- Form 10-Q for the quarterly period ended June 27, 2026
- Form 8-K/A (Amendment No. 1), Item 5.02, CEO transition compensation arrangements
- Apple posts record September quarter under new CEO as iPhone, Mac sales surge
- Apple (AAPL) Stock Price History
- Apple reports first quarter results (Form 8-K, Exhibit 99.1)
- Apple reports second quarter results (Form 8-K, Exhibit 99.1)
Written by Dalsna Finance from the public sources listed above. Every figure is cited to its source or shown as a labelled Dalsna Finance calculation. How we work: editorial standards. General information, not investment advice.
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