Apple Beats Forecasts in Ternus’s First Earnings Report

Apple generated $114.5 billion in revenue in the three months ended September 26, up 12% from a year earlier and above analysts’ $113.4 billion estimate. Profit reached $30.71 billion, or $2.10 per share, also topping forecasts. Ternus, who became CEO on September 1, presented the results in his first earnings report in the role.

IPhone revenue climbed 17% to $57.58 billion, setting a September-quarter record. The period included only eight days of sales for the iPhone 18 Pro models; Apple’s foldable iPhone Duo went on sale after the quarter ended. The Duo has been difficult to find, and Ternus said supply was constrained as the company worked to increase deliveries.

Mac sales rose 24% to $10.79 billion. Services, which includes offerings such as iCloud and the App Store, reached a record $31.57 billion, up about 10%. By contrast, iPad revenue fell 10% to $6.23 billion. Greater China revenue increased 21% to $17.54 billion, but came in below analysts’ expectations.

Apple’s gross margin was 47.9%, compared with 47.2% a year earlier. The company said tariff refunds added about one percentage point to the latest quarter’s margin and five cents to earnings per share. Higher memory costs weighed on the business, while price increases and lower costs for some other components helped offset the pressure. Ternus also pointed to supply constraints and currency effects as challenges.

The results arrive as Apple prepares for the holiday quarter, which will include a fuller period of demand for its latest iPhones and sales of the Duo. Ternus highlighted the company’s new products, including its foldable phone, home devices and touchscreen MacBook Pro, as it heads into that period.