Apple beat revenue estimates in John Ternus' first earnings report as CEO, but iPad sales missed and gross margin fell from the prior quarter. Mac and iPhone sales led the growth, while the stock was little changed after hours.
Apple reported fiscal fourth-quarter revenue of $114.48 billion, against $113.39 billion expected, according to LSEG. Earnings per share came in at $2.10, and Apple said tariff refunds added 5 cents to that figure.
The report is the first since Ternus took over from Tim Cook on Sept. 1. Revenue rose 12% from $102.5 billion a year earlier, Apple said in a statement.
iPhone and Mac drive the quarter
iPhone revenue reached $57.58 billion, versus $56.54 billion estimated. The quarter included only eight days of iPhone 18 Pro sales, and the new iPhone Duo reached stores after the period ended.
Mac was the fastest-growing category. Revenue surged nearly 24% to $10.79 billion, topping estimates of $9.61 billion. Ternus attributed the growth to strong sales of the MacBook Neo and the MacBook Pro.
iPad and home products fall short
Apple's iPad division contracted over 10% to $6.22 billion, the weakest of any product category by growth. Ternus blamed supply constraints and a difficult comparison to last year.
The home category also lagged. Sales declined nearly 8% to $8.3 billion, trailing the $9.06 billion average analyst estimate.
China drew different readings. CNBC reported that Greater China sales grew 21% to $17.53 billion. Business Insider, however, said China revenue of $17.54 billion missed analysts' estimates of $18.75 billion.
Margin slips as memory costs rise
The gross margin was 47.9%, which included a favorable impact of approximately 1 percentage point from tariff refunds. That compares with 50.1% in the previous quarter. Ternus said memory costs were higher than in the June quarter, partly offset by the benefit of carrying inventory and lower costs on non-memory components.
Ahead of the report, Apple shares were up 27% this year as of Friday's close. The stock was little changed in extended trading on Monday.
Ternus said in a statement that Apple had just capped off its best fiscal year ever. Ternus told CNBC: "never been more confident that the best is yet to come".
Sources: CNBC, Business Insider
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