Apple’s record quarter comes with a tariff-refund boost

Apple’s latest sales record came with a modest assist to profitability from tariff refunds. The company reported $114.5 billion in September-quarter revenue on November 2, up 12 percent from a year earlier, as iPhone and Services sales reached new highs for their respective reporting periods.

The results cover Apple’s fiscal fourth quarter, which ended September 26, 2026. Diluted earnings were $2.10 per share, including a five-cent benefit from tariff refunds, according to the company. Apple’s release described iPhone revenue as a September-quarter record and Services revenue as an all-time high.

Its accompanying unaudited financial statements show what drove the total. iPhone sales rose to $57.58 billion from $49.03 billion a year earlier, accounting for just over half of quarterly revenue. Services increased to $31.57 billion from $28.75 billion, while Mac sales reached $10.79 billion, compared with $8.73 billion.

The gains were uneven. iPad revenue fell to $6.23 billion from $6.95 billion, and Wearables, Home and Accessories declined to $8.30 billion from $9.01 billion. These are sales values, rather than counts of devices sold; higher revenue alone does not establish how much shipment volumes changed.

Refunds and the cost of components

Apple reported a gross margin of 47.9 percent, including a favorable impact of approximately one percentage point from tariff refunds. That describes a contribution to the margin rate, not a one-percent increase in revenue. The separately disclosed five-cent earnings contribution also means the full $2.10 per share should not be read as earnings generated without that benefit.

Reuters reported that revenue exceeded analysts’ $113.39 billion estimate and that earnings beat the $1.99 consensus even after excluding the refund benefit. CEO John Ternus told Reuters that memory costs had increased from the June quarter and that price increases provided some offset. Those comments describe management’s explanation of the cost pressure.

The next product cycle remains a separate test. Reuters noted that September-quarter iPhone sales included the iPhone 18 Pro lineup, but not the foldable iPhone Duo. Apple is presenting its expanded lineup as a platform for the holiday season; these September results do not yet measure that season’s sales.