Apple reported $114.5 billion in revenue for the quarter ended September 26, beating analysts’ expectations, while warning that higher memory costs will weigh on its next-quarter margin. The results, announced November 2, included record September-quarter iPhone sales and earnings of $2.10 per diluted share.
Revenue rose 12% from a year earlier, and net income reached $30.71 billion, up from $27.47 billion. Analysts had expected revenue of $113.4 billion and earnings of $1.99 per share, according to estimates cited by The Associated Press.
Apple said tariff refunds contributed about $0.05 per share to earnings and roughly one percentage point to its 47.9% gross margin. Without that contribution, the reported margin would have been lower.
December outlook points to rising costs
For the December quarter, Apple forecast revenue growth of 7% to 10% year over year, a range above the 6.1% analysts had expected. The company said it expects the period to be its biggest quarter for revenue.
At the same time, Apple projected a gross margin of 45% to 46%, below the 46.3% analysts had forecast. Rising memory prices account for most of the expected pressure, while spending tied to the rollout of Siri AI is also a factor.
Apple’s September-quarter gross margin and earnings figures were included in its official results announcement. CEO John Ternus, who took over from Tim Cook on September 1, said iPhone and Mac sales drove growth. Revenue in Greater China rose 21% during the quarter.
iPhone revenue increased 17.5% to $57.6 billion, and Mac sales rose almost 24%. iPad revenue fell 10.4%, while wearables, home and accessories revenue declined 7.9%. The quarter included only the first days of sales for the iPhone 18 Pro models; sales of the iPhone Duo, which began in October, were not included.
Services revenue reached a record $31.6 billion, up 9.8% year over year. Apple expects services growth to ease to between 8% and 9% in the December quarter, citing third-party licensing and currency movements.
Nicole French 
Dana Mcgee