The quarter against our forecast
Q4 FY26 line by line, as the income statement shows it
| Line | Outlook | Our forecast | Reported | Against our forecast |
|---|---|---|---|---|
| Net sales | — | $112.7B | $114.5B | +1.6%beat |
| Sales growth, year on year | — | 10.0% | 11.7% | +1.7 ptbeat |
| Products | — | $81.2B | $82.9B | +2.1%beat |
| Services | — | $31.5B | $31.6B | +0.3%beat |
| Operating segments | ||||
| Americas | — | $47.8B | $48.7B | +1.8%beat |
| Europe | — | $31.4B | $32.0B | +1.9%beat |
| Greater China | — | $17.1B | $17.5B | +2.6%beat |
| Japan | — | $7.10B | $6.54B | −7.9%miss |
| Rest of Asia Pacific | — | $9.31B | $9.71B | +4.3%beat |
| Cost of sales | ||||
| Products | — | $51.5B | $52.1B | +1.2%miss |
| Services | — | $7.71B | $7.59B | −1.6%beat |
| Cost of sales | — | $59.2B | $59.7B | +0.8%miss |
| Gross margin | — | $53.5B | $54.8B | +2.4%beat |
| Gross margin | — | 47.5% | 47.9% | +0.4 ptbeat |
| Research and development | — | $12.1B | $11.7B | −2.7%beat |
| Selling, general and administrative | — | $7.20B | $7.46B | +3.6%miss |
| Total operating expenses | — | $19.2B | $19.2B | −0.3%beat |
| Operating income | — | $34.3B | $35.6B | +3.9%beat |
| Operating margin | — | 30.4% | 31.1% | +0.7 ptbeat |
| Other income/(expense), net | — | $350M | $504M | +44.0%beat |
| Income before provision for income taxes | — | $34.6B | $36.1B | +4.3%beat |
| Provision for income taxes | — | $5.72B | $5.42B | −5.1%beat |
| Tax rate | — | 16.5% | 15.0% | −1.5 ptbeat |
| Net income | — | $28.9B | $30.7B | +6.2%beat |
| Diluted (in shares) | — | 14.62B | 14.63B | +0.01Bmiss |
| Diluted EPS | — | $1.98 | $2.10 | +12¢beat |
Our forecast was frozen before the release: the middle forecast of 7 analysts as of 2026-11-02 07:27:21 ET. Each reported number is quoted from the release; the 10-Q's tagged facts confirm the statement's lines when it is filed. Read before our lock: the SEC lists the release in its index that night, and the next check confirms its bytes. A cost above our forecast is a miss.
Why the quarter differed from our forecast
Net income+6.2%
What we assumedOur net income forecast was $28.9B, using management’s guided tax rate and other income.other income near $350 million and a 16.5% tax rate
Analyst A
What the company printedNet income was $30.7B; net income exceeded ours by +6.2%. Apple printed a tax provision below our forecast.Provision for income taxes 5,424 5,338 27,062 20,719
Known before our cutoff?No: Searched pre-cutoff filings and calls for September tax outcomes and the final net income; no matching quarter outcome appeared.
Operating income+3.9%
What we assumedOur operating income forecast was $34.3B, using midpoint gross margin and operating expenses from July’s guidance.I put the September quarter at $112.7 billion, 47.5% gross margin, $19.25 billion of operating expense and $1.98 of earnings
Analyst A
What the company printedOperating income was $35.6B; operating income exceeded ours by +3.9%.Operating income 35,631 32,427 158,063 133,050
Known before our cutoff?No: Searched pre-cutoff filings and calls for final operating income, gross profit and sales; none appeared.
Gross margin+2.4%
What we assumedOur gross margin forecast in dollars was $53.5B; the midpoint margin assumption already included tariff refunds.We expect gross margin to be between 47% and 48%. This includes an expected benefit of approximately one percentage point related to tariff refunds.
Analyst A
What the company printedGross margin in dollars was $54.8B; gross margin exceeded ours by +2.4%. Apple said the quarter included tariff refunds.CUPERTINO, CALIFORNIA — Apple® today announced financial results for its fiscal 2026 fourth quarter ended September 26, 2026. The Company posted quarterly revenue of $114.5 billion, up 12 percent year over year. Company gross margin was 47.9 percent, including a favorable impact of approximately 1 percentage point from tariff refunds. Diluted earnings per share was $2.10, up 14 percent year over year, and included a favorable impact of $0.05 from tariff refunds.
Known before our cutoff?Yes: July’s earnings call already included tariff refunds in margin guidance; refunds themselves were not an unforeseen benefit.We expect gross margin to be between 47% and 48%. This includes an expected benefit of approximately one percentage point related to tariff refunds.
Net sales+1.6%
What we assumedOur sales forecast was $112.7B, placing September revenue at the guidance midpoint despite worsening supply constraints.says supply constraints bite harder than in June across iPhone, Mac and iPad
Analyst A
What the company printedNet sales were $114.5B; net sales exceeded ours by +1.6%. The release did not explain the difference from our forecast.Total net sales (1) 114,477 102,466 478,834 416,161
Known before our cutoff?No: Searched pre-cutoff filings and calls for final September sales; the outcome was not available.
The company's new outlook
Apple’s board of directors has declared a cash dividend of $0.27 per share of the Company’s common stock. The dividend is payable on November 16, 2026, to shareholders of record as of the close of business on November 12, 2026.
Each item as the release prints it. Our forecast stands beside an item only when the item is one of our two numbers, for our quarter or year, in our unit.
The company's reasons, from the release
- Gross margin and EPS benefit from tariff refunds “CUPERTINO, CALIFORNIA — Apple® today announced financial results for its fiscal 2026 fourth quarter ended September 26, 2026. The Company posted quarterly revenue of $114.5 billion, up 12 percent year over year. Company gross margin was 47.9 percent, including a favorable impact of approximately 1 percentage point from tariff refunds. Diluted earnings per share was $2.10, up 14 percent year over year, and included a favorable impact of $0.05 from tariff refunds.”
- Installed base reaches new all-time high ““Apple delivered September quarter records for net income and EPS. Our record September quarter capped off a strong fiscal 2026, with all-time record revenue of $479 billion and double-digit EPS growth,” said Kevan Parekh, Apple’s CFO. “We generated $28 billion in operating cash flow during the quarter, allowing us to return $28 billion to shareholders. Thanks to our very high levels of customer satisfaction and loyalty, our installed base of active devices reached a new all-time high across all major product categories and geographic segments.””