Apple posts stronger-than-expected Q4 revenue in first earnings report for new CEO John Ternus

Apple Inc. reported stronger-than-anticipated revenue in its fiscal fourth quarter, providing a positive beginning for new CEO John Ternus, who took office in September. The results contrasted with disappointing financials from other tech leaders, such as Alphabet, Amazon, and Intel, which reported weaker-than-expected earnings for the same period.

Apple generated $30.71 billion, or $2.10 per share, which represents a 12% increase from $27.47 billion, or $1.85 per share, in the same quarter last year. The company's revenue climbed 12% to $114.5 billion, up from $102.5 billion in the previous year. Earnings included 5 cents per share from tariff refunds. Analysts anticipated earnings of $1.99 per share on revenue of $113.4 billion, based on a poll by FactSet.

Emarketer analyst Jacob Bourne noted that Apple's solid earnings follow a recent tech sell-off, driven by investor questions about the high costs and uncertain returns of the AI boom, which is being led by Apple's competitors. Despite the positive earnings, Apple's gross margin, which was 47.9% in the fourth quarter, is expected to decline to between 45% and 46% in the upcoming quarter, primarily due to higher memory costs and expenses related to the release of Siri AI.

Apple's stock was flat after the earnings announcement but fell 2.6% to $329.60 during the earnings call, after closing down 1.8% at $338.32 in regular trading.