Apple earnings beat expectations, but rising chip costs worry investors
Better-than-expected results from Apple for the last quarter of the company’s fiscal year 2026 were overshadowed by rising memory chip costs and a forecast for slower services growth.
In the three months ending on 26 September 2026, Apple reported revenue that exceeded expectations, driven by a surge in iPhone sales during September. The Cupertino-based tech giant's revenue climbed 12% to $114.5 billion ($102.1 billion), and earnings per share rose 12% to $2.10 ($1.99). Analysts had forecast earnings of $1.99 per share on revenue of $113.4 billion ($101.1 billion).
The improvement in profits was partly attributed to tariff refunds, which added $0.05 per share to earnings. Gross margins expanded to 47.9%, up from 46.3% previously. However, the gains were tempered by concerns over rising chip costs, which pressured Apple's margins. The company expects gross margins to contract to between 45% and 46% in the December quarter, lower than the 46.3% anticipated.
Apple's iPhone sales grew 17.5% to $57.6 billion ($51.4 billion), while Mac sales increased almost 24%. iPad revenue dipped 10.4%, and wearables, home, and accessories sales fell 7.9%. Ternus, Apple's new CEO, highlighted the company's recovery in Greater China, where revenue rose 21% compared to the previous year, contributing to the quarterly growth.
Apple anticipates revenue growth of 7% to 10% in the December quarter, slightly slower than the 9.8% growth in the September quarter. The slowdown in services growth is attributed to pressure from third-party licensing and currency movements. Despite the concerns, Apple remains optimistic about its financial outlook, expecting overall revenue to increase by 7% to 10%.
Written by urgent.news from Euronews's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
