Since 2017, Boston Consulting Group and Fortune have partnered to identify firms with long-term growth potential, screening more than 3,000 companies every year for their capacity to generate growth from within.

The Future 120

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

WMA 2024-Apple

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

WMAC 2023-Apple

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Apple

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company.\n\n–The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.\n–Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.\n–Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.&quot;}" data-sheets-userformat="{&quot;2&quot;:771,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16770457},&quot;11&quot;:4,&quot;12&quot;:0}">The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company. 
<ul> 
 	<li><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company.\n\n–The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.\n–Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.\n–Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.&quot;}" data-sheets-userformat="{&quot;2&quot;:771,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16770457},&quot;11&quot;:4,&quot;12&quot;:0}">The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.</li> 
 	<li><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company.\n\n–The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.\n–Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.\n–Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.&quot;}" data-sheets-userformat="{&quot;2&quot;:771,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16770457},&quot;11&quot;:4,&quot;12&quot;:0}">Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.</li> 
 	<li><span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;The maker of personal computers, tablets, and other devices derived particularly strong gains from its smartphones and entertainment products. Apple brought in $99.8 billion in profit last year, a record for a U.S. Fortune 500 company.\n\n–The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.\n–Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.\n–Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.&quot;}" data-sheets-userformat="{&quot;2&quot;:771,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16770457},&quot;11&quot;:4,&quot;12&quot;:0}">Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.</li> 
</ul>

The 300 companies on this list are transforming industries from the inside out.

The companies on this list are mobilizing the creative tools of capitalism to help solve social problems.

CTW-2023-Apple_Carbon_Neutral_infographic

The eighth-biggest company in the world by revenue is rapidly going back to the basics of sustainability—reduce, reuse, and recycle. In recent years, Apple has made it a priority to build out its environmental efforts, from reducing the plastic in its packaging to developing robots that better recover materials from discarded electronics. It plans for every product it makes to be carbon-neutral by 2030. Last year, 20% of materials in Apple products were from recycled or renewable sources, and the company intends to eventually reach 100%. The company recently announced its first-ever carbon-neutral Apple Watch and discontinued the use of leather in its product lines. Since 2015, the iPhone maker has cut emissions by more than 45% while its revenue increased by 68%, and its corporate operations are fully carbon-neutral.

Change the World

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Apple

The maker of personal computers, tablets, and other devices saw particularly strong gains with its smartphones and entertainment products this year. Apple brought in a Fortune 500 record $99.8 billion in profit last year, and is the most profitable company on the list for the eighth time in nine years. 
<ul> 
 	<li>The iPhone 14 lineup drew consumers after its September 2022 release, contributing to Apple’s 1.5% year-on-year growth in iPhone sales.</li> 
 	<li>Streaming offerings including Apple Music and Apple TV+ also drove revenue growth, as services sales hit a record of $20.9 billion in the first three months of 2023.</li> 
 	<li>Apple has been eyeing India, where it opened its first store in April 2023, as a market to propel iPhone sales and provide a manufacturing boost.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC-2022-01-Apple

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

G500 2022-07-Apple

Despite facing global setbacks, Apple hit multiple positive milestones in 2021. After many of its factories and those of its suppliers were shut down in China owing to COVID, Apple was forced to rethink its supply chain. The global chip shortage added further pressure, costing Apple billions in revenue. But after the company switched to designing more chip components in-house, sales picked up. And Apple finished the year with a gargantuan $94 billion in profits—outperforming every other U.S. company on that front. Apple also gained significant market share in the U.S. personal computing market with its Mac lineup, bringing in a record $37.4 billion in sales. In entertainment, the company made headlines at the Oscars after Apple TV+ became the first streaming service to win the coveted Best Picture award, for its coming-of-age drama CODA. Apple remained the big dog of the Trillion-Dollar Club, too: Its market valuation briefly topped $3 trillion in January 2022, though by August it had receded to a mere $2.4 trillion—still higher than any other publicly traded company. Not everything was rosy for CEO Tim Cook: In early 2022, he faced considerable employee backlash for receiving a hefty $99 million pay package in 2021, and the company has been forced to delay its return-to-office plans.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Apple

Despite facing global setbacks, Apple hit multiple positive milestones in 2021. After many of its factories and those of its suppliers were shut down in China owing to COVID, Apple was forced to rethink its supply chain. The global chip shortage added further pressure, costing Apple billions in revenue. But after the company switched to designing more chip components in-house, sales picked up. And Apple finished the year with a gargantuan $94 billion in profits—outperforming every other U.S. company on that front. Apple also gained significant market share in the U.S. personal computing market with its Mac lineup, bringing in a record $37.4 billion in sales. In entertainment, the company made headlines at the Oscars after Apple TV+ became the first streaming service to win the coveted Best Picture award, for its coming-of-age drama CODA. Apple remained the big dog of the Trillion Dollar Club, too: Its market valuation briefly topped $3 trillion in January 2022, though by May it had receded to a mere $2.7 trillion—still higher than any other publicly traded company. Not everything was rosy for CEO Tim Cook: In early 2022, he faced considerable employee backlash for his hefty $99 million pay package in 2021, and many Apple staff were disgruntled with the company’s return-to-office plans.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-01-Apple

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-006-Apple

The pandemic created challenges and opportunities for Apple. CEO Tim Cook had to close stores and send home engineers. But with Apple customers worldwide working and learning from home, iPad and Macintosh computer sales skyrocketed to their highest levels ever. And fiscal-year revenue hit an all-time record too, of $275 billion. That helped Apple’s stock price soar; it gained 80.7% in 2020. As that year wound down, regulators fixed their sights on Apple for potentially abusing its power over the iOS app store. A House Judiciary antitrust subcommittee report in October concluded that Apple “exerts monopoly power” in its app store to harm competition and increase prices for consumers. Meanwhile, testimony in an antitrust lawsuit filed by Fortnite developer Epic Games will likely increase pressure on legislators to limit Apple’s power.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-03-Apple

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-012-Apple

Mighty Apple dipped a smidge in 2019, down 2% to $260 billion in sales. The computer and phone maker’s ability to make money cushioned the blow. Apple earned $55 billion. Three categories tell the story of Apple’s sales doldrums. iPhone sales, 55% of Apple’s total, fell 14%. Increases in sales of services like streaming and subscriptions, 18% of the total, grew 16%. And wearables (AirPods and Watches) and other non-phone accessories (iPods, HomePods, and Beats products) leapt 41%, but account for only 9% of the pie.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-004-Apple

Mighty Apple dipped a smidge in 2019, both in terms of sales, down 2% to $260 billion, and in its ranking, from No. 3 to No. 4. The computer and phone maker’s ability to make money cushioned the blow. Apple earned $55 billion. Three categories tell the story of Apple’s sales doldrums. iPhone sales, 55% of Apple’s total, fell 14%. Increases in sales of services like streaming and subscriptions, 18% of the total, grew 16%. And wearables (AirPods and Watches) and other non-phone accessories (iPods, HomePods, and Beats products) leapt 41%, but account for only 9% of the pie.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

These 52 companies from across the globe are doing well by doing good.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here’s our look at 57 companies that do well by doing good.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here’s our look at 50 companies that do well by doing good.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Shale rules! That’s the lesson of the latest edition of our annual list of public companies with the most stellar three-year profit, revenue, and stock growth. 

100 Fastest-Growing Companies

Fastest-growing Companies

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Change The World

Impact Segment

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

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Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

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Strongest Dimension

Years on list

Previous rank

State

Key Financials (last Fiscal Year)

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Future 120

Apple designs, manufactures, and sells smartphones, personal computers, tablets, wearables, and accessories. Its best-known products include the iPhone, the Mac line of personal computers, iPad tablets, and accessories like the Air Pods and the AppleWatch. The company’s services include Apple Music, which offers on-demand radio stations; Apple News+, a subscription news and magazine service; the streaming service Apple TV+t; and Apple Pay, a cashless payment service. Apple also distributes third-party applications for its products through its App Store.

Q4 2026

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Apple (AAPL): Company Profile, Stock Price, News, Rankings

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Good afternoon, and welcome to the Apple Q4 fiscal year 2026 earnings conference call. My name is Suhasini Chandramouli, Head of Investor Relations. Today's call is being recorded. Speaking first today is Apple CEO John Ternus, and he'll be followed by CFO Kevan Parekh. After that, we'll open the call to questions from analysts. Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, taxes, and future business outlook. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast, including risks related to the potential impact to the company's business and results of operations from macroeconomic conditions, tariffs and other measures, and legal and regulatory proceedings.

For more information, please refer to the risk factors discussed in Apple's most recently filed reports on Form 10-Q and Form 10-K, and the Form 8-K filed with the SEC today, along with the associated press release. Additional information will also be in our report on Form 10-K for the year ended September 26, 2026, to be filed tomorrow, and in other reports and filings we make with the SEC. Apple assumes no obligation to update any forward-looking statements, which speak only as of the date they are made. I'd now like to turn the call over to John for introductory remarks.

Thank you, Suhasini. Hello, everyone, and thanks for joining us. It's a privilege to be with you for the first time as Apple CEO. I'm honored to represent our teams and the work they do every day. Today, Apple is pleased to report $114.5 billion in revenue, up 12% from a year ago, and a September quarter record. These results helped Apple achieve its best-ever fiscal year for revenue and EPS. This is an amazing time at Apple. We just completed one of the most prolific launch periods in our history. It's been a remarkable time for innovation across all of our categories. One of the greatest testaments to that is the all-new iPhone Duo, the most transformational iPhone since the original.

We're also incredibly excited about iPhone 18 Pro and 18 Pro Max, which take massive leaps forward on camera, battery life, and performance, features that our users care deeply about. Meanwhile, touch has arrived on Mac for the first time with the all-new MacBook Pro, and we were excited to announce the new iMac and 14-inch MacBook Pro. The all-new iPad mini features a stunning new OLED display and brings a super-thin design to the smallest member of the iPad family. Apple Watch now offers users the clearest window yet into their heart health. We introduced AirPods 5, which feature industry-leading active noise cancellation in an open-ear design. And we've laid the foundation for an even more intelligent smart home with the all-new HomeView, Apple TV 4K, and HomePod mini.

On top of it all, we're unlocking more powerful AI experiences across our lineup, including with the all-new Siri AI, a profoundly capable and deeply personal assistant seamlessly integrated across our platforms. Like everything we make, Siri AI is built with essential privacy protections, so no one can access users' data, not even Apple. We launched Siri AI in beta for U.S. English users in September and expanded to French, Japanese, Korean, Portuguese, and Spanish in October. We're really excited to have rolled all these innovations out, and there's still so much more we plan to do. I'm feeling great about the opportunities ahead for Apple, from our product roadmap and broad range of services to promising areas like health, emerging markets, enterprise, and education. As one example, we recently secured our biggest education deal ever for Mac with the Department of Education in the Philippines.

They're going to deploy 170,000 MacBook Neos to teachers and staff. Opportunities like this bring more users into our ecosystem and help fuel growth across our business. Apple is the greatest company in the world. We've assembled an extraordinary collection of talent, the best engineers, designers, developers, and experts in every corner of our business, from our supply chain to our stores. Every day, we bring the right people together with the best ideas to build products and services that change lives, guided by a foundational set of values and a belief that the best technology should make a better world. We do that by making products that are powerful and intuitive and meet Apple's uncompromising standards for quality, performance, design, and durability. That's the Apple experience customers love. With our latest lineup, people have even more reasons than ever to upgrade or switch to an Apple product.

At the same time, Apple services amplify the experience of every device, helping people work, play, listen, watch, and stay connected to the world around them. I'm delighted with where our services business is today and where it's going. With an installed base of more than 2.5 billion active devices, I'm looking forward to expanding our offerings and improving the lives of users around the world. We see tremendous opportunity in AI as well. Siri AI marks a new chapter in AI at Apple. It is a completely reimagined assistant that is powerful, personal, private, and deeply relevant to our users' daily lives. Siri AI picks up what's relevant to our users, understands what's on their screen, and holds a natural conversation, all to help them with the things they do every day. It's the Siri we've always wanted.

We are very pleased with the reviews and feedback we've received, and we're so excited that more and more users are getting to experience it. iPhone remains at the center of our opportunity as the intelligent personal hub. It's always with you and understands your personal context, from your messages to your photos, notes, and apps, to deliver powerful intelligence right when you need it. There's Mac, which is having an AI moment all its own. Mac is what brought me to Apple, and through the years, it has opened a world of possibilities. More than 40 years after the first Mac, the category is having its biggest moment yet, with every Mac in our latest lineup a powerful platform for AI. Mac mini and Mac Studio in particular are pushing the boundaries of local, private AI, giving users the ability to do things once considered impossible.

From Mac to iPhone to iPad, we are proud that our products are the best platforms in the industry for AI, for both first-party and third-party applications, and we are excited about the opportunities that creates. Ultimately, everything we do at Apple is for our users. The success of every innovation is best measured by its impact on people's lives, and that is what drives us to keep building great products and to get them into the hands of people all around the world. Now, let us take a deeper dive into our results for the quarter.

As I mentioned earlier, we had an excellent quarter at Apple. In addition to September quarter and fiscal year records in total company revenue, iPhone set a September quarter revenue record, capping its best fiscal year ever. Services achieved an all-time record during the quarter to close out our best year ever there too.

We grew in the vast majority of markets we track, setting September quarter records in the Americas, Europe, Greater China, and the rest of Asia Pacific. We also set September quarter revenue records in both developed and emerging markets, in addition to an all-time record in India. Turning to our lineup, iPhone revenue was $57.6 billion for the September quarter, up 17% from a year ago, despite supply constraints and FX headwinds. We grew strong double digits in the U.S. and Greater China to achieve September quarter revenue records. We also set a September quarter record for upgraders worldwide, as well as in the U.S., China Mainland, and India, helping to deliver our best fiscal year ever for upgraders globally. At the launch in September, we introduced the all-new iPhone Duo.

From the very beginning, we knew what we wanted to create, a foldable form factor with a larger display that feels as natural and intuitive as iPad. We designed the hardware and software together to make it unmistakably iPhone, while enabling entirely new ways to use it. The result is a series of remarkable innovations that we believe will redefine what a foldable phone can be. We are so proud of what our teams have built.

Developers have been quickly adapting to this new form factor, and we are excited to see more and more apps optimized for iPhone Duo. We have been thrilled with the early response from reviewers and customers, and we are working hard to get iPhone Duo into customers' hands as quickly as we can. We have also been thrilled with the response to iPhone 18 Pro and Pro Max. It is easy to see why customers are embracing them.

Our latest models feature a dramatically improved camera system with breakthrough upgrades like variable aperture and all-new photographic styles. The A20 Pro and next-generation vapor chamber together deliver the highest sustained performance in iPhone history. iPhone 18 Pro Max delivers the biggest increase in battery life ever on an iPhone. A20 Pro also features a new dual 16-core Neural Engine, accelerating on-device AI and computational photography. Turning to Mac, revenue was $10.8 billion, up 24% from a year ago, despite supply constraints. We had double-digit growth in the majority of markets we track, and particularly strong performance in our emerging markets, where we set a September quarter revenue record. We also set a September quarter record for customers new to the Mac.

According to IDC, we gained share globally during the quarter and for the full fiscal year. We have never sold more Macs in a fiscal year than we did this time, which is a truly remarkable testament to these incredible products. Last week, we introduced a whole new way for people to experience Mac. The all-new MacBook Pro with PROLED XDR brings touch to the Mac for the first time. It also boasts the best pro laptop display we have ever shipped, plus all-day battery and our most immersive laptop audio. It all comes together in a thinner and lighter design. We also brought the power of M6 to the new 14-inch MacBook Pro and the new iMac.

This latest generation of Apple silicon includes the world's fastest CPU core to speed up everyday tasks, in addition to a dual 16-core Neural Engine to drive private on-device AI tasks. Now turning to iPad, where revenue was $6.2 billion for the September quarter. Last week, we introduced the all-new iPad mini with an amazing new OLED display, super thin design, and the power of A20 Pro. With the newest edition, our iPad lineup is more capable and versatile than ever before. Anywhere our users go, there's a place for iPad, like a classroom, where it helps students explore the world in amazing ways, or a design studio, giving artists and creatives an expansive canvas to explore their ideas. In wearables, home, and accessories, revenue was $8.3 billion for the September quarter.

Apple Watch makes the simple act of wearing a watch a powerful way to help take care of your health. We were thrilled to introduce our all-new Health Sensing System to help our users get the most out of health tracking. Paired with the S11 chip, Apple's most powerful wearable chip, the Health Sensing System delivers the most accurate heart rate sensing in a wearable. We were also happy to unveil new features like Health Age and Readiness, which will tell you when to push forward or hold back, as well as the all-new Health app redesign. We are excited for Audio Intelligence, which will be coming in a future software update and will help you remember moments you might otherwise miss.

Apple Watch Series 12 brings it all together in a beautifully light design, while Apple Watch Ultra 4 goes further with longer battery life compared to the previous generation and the most accurate on-device GPS in a sports watch. Meanwhile, AirPods 5 offers best-in-class open-ear active noise cancellation at an incredible price, while improving sound quality, battery life, and durability. With iPhone and Apple Intelligence, including Siri AI, AirPods allow users to do remarkable things, like connect with someone who's speaking another language with live translation, or get answers with broad world knowledge entirely hands-free. Just a few weeks ago, we introduced a whole new generation of hardware for the home. That includes Apple HomeView, which was designed to be central to the home and personal to everyone in it, bringing entertainment, connection, and home management together in one place.

We announced this alongside the new Apple TV 4K, now smarter with Apple Intelligence, the all-new HomePod mini, and Apple Home Collection, a new program that extends Apple Home beyond our own products through deep collaboration with key partners. All of it, as always, is built on Apple's approach to privacy. Now, let's turn to services. Revenue was $31.6 billion, up 10% from a year ago, and an all-time record. We saw double-digit growth in the majority of markets that we track, and we set all-time revenue records in the Americas and Europe, as well as the September quarter record in the rest of Asia Pacific. The 78th Primetime Emmy Awards were a night to remember for Apple TV, with our shows earning more awards than any other network. "Widow's Bay," the show of the summer, became the most awarded comedy ever in a single year with 14 wins.

We're very excited about our programming, from fan favorites like "Slow Horses" and "Ted Lasso" to the upcoming film "Being Heumann." To date, Apple TV productions have earned more than 900 wins and over 3,800 nominations. Turning to Apple Pay, we recently launched in India with Axis Bank, bringing a seamless, safe, and secure way to pay in one of the biggest markets in the world. Today, Apple Pay is available in over 90 markets, giving customers around the world peace of mind built into every transaction. Apple Music was created to bring artists and fans closer together, and with the opening of Apple Music Hall, we have a beautiful new venue for intimate shows that bring them even closer. To celebrate the opening of the site in London, we hosted an unforgettable performance by Elton John.

People love Apple products and services for the countless ways they make life easier, more enjoyable, and just plain better. They also count on Apple to create technology responsibly, built the right way, not the easy way. That means building products with even more recycled content to take less from the earth, and with even better durability so they last longer. It means developing intelligent capabilities like sound recognition on Apple Watch to alert users who are deaf or hard of hearing to what's happening around them. It means designing privacy protections like on-device processing so personal data stays on a user's device. And it means introducing new child safety features to make it easier for parents to manage when and how their kids can use their devices. We're also pleased to be doing more and more manufacturing in the U.S.

Through our American Manufacturing Program, we're deepening partnerships with suppliers across the country, including Perryman Company, a titanium producer now supplying iPhone Duo, and Qnity Electronics, which is producing the camera technology behind iPhone 18 Pro's new variable aperture system. Nearly 100 components in our newest iPhones come from American companies in more than a dozen states. All told, Apple supports more than 450,000 American jobs with thousands of suppliers and partners across all 50 states. It's all part of our $600 billion four-year commitment to U.S. innovation and advanced manufacturing. I am proud of what we've accomplished this quarter, and I'm excited for what's ahead. We have everything we need to be extraordinarily successful, and with this team, this vision, this mission, and these values, I have no doubt that we will. With that, I'll hand it over to Kevan,

Thanks, John, and good afternoon, everyone. Here's a quick rundown of our key financial metrics. Our revenue of $114.5 billion was up 12% year-over-year, a September quarter revenue record. This strong performance was despite sequential foreign exchange headwinds of nearly 2 percentage points, as well as supply constraints on iPhone, Mac, and iPad. Products revenue was $82.9 billion, up 12% year-over-year, driven by strong double-digit growth on iPhone and Mac. Our install base of over 2.5 billion active devices has reached another all-time high across all major product categories and geographic segments. Services revenue was $31.6 billion, up 10% year-over-year. We saw strong performance in many services categories with all-time records in video, cloud services, payment services, and advertising, and a September quarter record in music. Company gross margin was 47.9%, and products gross margin was 37.2%.

These both included a benefit from tariff refunds, which had a favorable impact of approximately 1 percentage point in the September quarter. When you remove the tariff refunds from both the June and September quarter, both company and products gross margin would be down about 1 point sequentially, primarily driven by higher memory costs. As of the September quarter, we have received the vast majority of the refunds related to tariffs paid. Services gross margin was 76%, up 40 basis points sequentially. Operating expenses came in at $19.2 billion, up 21% year-over-year, as we continued to make investments in R&D. Net income was $30.7 billion. Diluted earnings per share was $2.10, up 14% year-over-year, and included $0.05 of favorable impact from tariff refunds. Both net income and EPS set September quarter records, even when excluding the tariff refund benefit.

Operating cash flow was also very strong at $28.1 billion. This performance marked our best fiscal year yet, with $478.8 billion in revenue, up 15% year-over-year, and a fiscal year record for EPS of $8.98, up 20% year-over-year. Now, I'm going to provide some more details for each of our revenue categories. iPhone revenue was $57.6 billion, up 17% year-over-year, despite supply constraints. We grew double digits in the majority of markets we track, and we also reached September quarter revenue records across both developed and emerging markets. As John mentioned, it was a record year for the total company, and we also had our best year ever for iPhone, both worldwide and in every geographic segment.

The iPhone active install base grew to an all-time high, and iPhone had a record year for upgraders globally and in several markets, including the U.S., China Mainland, India, and Japan. According to a recent survey from Worldpanel, iPhone was a top-selling model in the U.S., urban China, India, the U.K., Germany, Australia, and Japan. Mac revenue was $10.8 billion, up 24% year-over-year, despite supply constraints. This performance was driven by the strength of the MacBook Neo and MacBook Pro. We saw double-digit growth in both developed and emerging markets, with all-time records in markets like India and Southeast Asia. Emerging markets continued to see strong performance on Mac, resulting in Mac's best fiscal year there, driven by record upgraders and customers new to the Mac.

iPad revenue was $6.2 billion, down 10% year-over-year, driven by the supply constraints I mentioned earlier, as well as a continued difficult compare against the launch of the A16-powered iPad in the prior year. The iPad install base reached an all-time high during the quarter, and over half of the customers who purchased an iPad were new to the product. Wearables, home, and accessories revenue was $8.3 billion, down 8% year-over-year, as we faced a difficult compare against the launch of the Watch SE 3 and the AirPods Pro 3 in the prior year. The wearables install base reached a new all-time high, and over half of customers who bought an Apple Watch in the quarter were new to the product. Services revenue set an all-time record of $31.6 billion, up 10% year-over-year, despite over 1.5 points of sequential FX headwinds.

We set all-time revenue records in the majority of markets we track, including several emerging markets like Latin America and India. We are optimistic about the long-term future of our services business. With our large install base of over 2.5 billion active devices, we have an incredibly strong foundation for growth opportunities. Our services continue to attract more customers, and both transacting and paid accounts reached new all-time highs in the quarter. We also have over 1.5 billion paid subscriptions, which grew double digits during the quarter, reaching an all-time high. We continue to improve and expand our services offerings, from iCloud+ plans that now include Apple TV and Apple Arcade in more than 100 countries and regions, to ads in Apple Maps, now live in the U.S. and Canada, which will give local businesses a new way to reach customers while respecting our users' privacy.

Turning now to enterprise, organizations are continuing to expand their fleets of Apple devices to transform operations and drive productivity. Duke Health performed the first surgical procedure using Apple Vision Pro for hip arthroscopy with an FDA-authorized app from Stryker. American Airlines is deploying over 37,000 iPhone 17 devices to flight attendants for in-flight purchases with tap to pay, in addition to 25,000 iPads for pilots and mechanics. More companies are choosing Mac across a growing range of use cases, including for on-device AI. For example, Gap Inc. is running AI entirely on Mac mini for loss prevention across hundreds of stores, eliminating cloud token costs. Christie's, a world-leading auction house, is running local models on Mac Studio to improve core productivity workflows such as pricing estimates. Let's turn to our cash position and capital return program.

We ended the quarter with $137 billion in cash and marketable securities and $80 billion in total debt. During the quarter, we returned $28 billion to shareholders. This included $3.9 billion in dividends and equivalents and $24 billion in share repurchases. As we move ahead into the December quarter, I'd like to review our outlook, which includes the types of forward-looking information that Suhasini referred to. Importantly, the color we're providing assumes that global tariff rates, policies, and their application remain in effect as of this call, and the global macroeconomic outlook does not worsen from today. We expect our December quarter total company revenue to grow between 7% and 10% year-over-year, which reflects our best view of constrained supply. We expect this to be the best quarter for revenue in the history of the company.

We expect services revenue to grow between 8% and 9% year-over-year in the December quarter. This contemplates sequential headwinds primarily driven by third-party licensing and foreign exchange. We expect gross margin to be between 45% and 46%. This includes primarily the impact of higher memory costs, as well as some costs related to the ramp of Siri AI. We expect operating expenses to be between $20.4 billion and $20.8 billion. We expect OI&E to be around $300 million, excluding any potential impact from the mark-to-market of minority investments, and our tax rate to be around 17%. Finally, today, our board of directors has declared a cash dividend of $0.27 per share of common stock payable on November 16, 2026, to shareholders of record as of November 12, 2026. With that, I'll hand it back to John.

Thanks, Kevan. Before we get into questions, I'd like to introduce Sabih Khan, Apple's Chief Operating Officer. Many of you know Sabih from his work with worldwide operations and supply chain, leading many important functions at Apple, including manufacturing, AppleCare, environmental efforts, and supplier partnerships around the world. Sabih and his team are the reason we're able to build and deliver products at a scale and of a caliber unlike anyone else out there. I've asked Sabih to join Kevin and me on these calls as we take your questions.

Thank you, John. We ask that you limit yourself to two questions. Operator, may we have the first question, please?

Our first question is from Michael Ng of Goldman Sachs. Please go ahead.

Hey, good afternoon. Thank you for the questions. I have two. First, on the iPhone 18, the standard model was left out of the September lineup. I was just wondering if you could share some of the reasons why, whether there were some supply constraints and component-related things that led to that decision, or if it had to do with the launch of the Duo. Any color there would be helpful. Then I have a follow-up. Thank you.

Yeah. Thanks, Michael. Look, we were thrilled to introduce the iPhone Duo and iPhone 18 Pro earlier this year in September. We have iPhone 17, iPhone Air, and 17e continuing to kind of round out this incredibly strong lineup for the holidays. Obviously, we don't make any comments about future roadmap, but we're excited about where we're at.

Great. Thank you. My second question is just around iCloud+. It seems like it's becoming a more strategic product, just given the tie-in with home security as well as the potential monetization opportunity for Apple Intelligence. I was just wondering, what are you seeing on iCloud+? Are there any tailwinds in terms of attach rates, just particularly given the rising cost for increased storage options on iPhone and the company's push into home products? Thank you.

Yeah. Thanks for the question. I think, we just, in the September quarter, had an all-time record for our cloud services for revenue. You mentioned iCloud+. This is something we're very excited about. We have these iCloud+ plans that now include Apple TV and Apple Arcade in more than 100 countries and regions where we think we can really reach new potential subscribers. Then, as you mentioned, we think there's good opportunities on Apple Intelligence. There's going to be some usage limits on features that rely on server-side models, which include Siri AI and intelligent photo editing and some other things like that. Anyone who needs greater capacity will be able to purchase expanded access in the future. So, kind of to your point, in the beginning, iCloud tiers were largely about storage, but we've been adding more capabilities and features to it.

Awesome. Thank you, Michael. Operator, could we get the next question, please?

Our next question is from Erik Woodring from Morgan Stanley. Please go ahead.

Hey, guys. Thank you for taking my questions, and John, congrats on your first quarter here. As the world of AI evolves from chatbots to consumer agents, it seems like there are growing opportunities for Apple. It also seems like there are risks. John, I'd just love to get your perspective on what role you want Apple and Siri AI to play in kind of this consumer agentic AI landscape, and just how you look at any potential risks of some of these agents trying to encroach on your services business. Then a quick follow-up, please. Thank you.

Sure. Thanks, Erik. Look, first and foremost, we are incredibly excited to launch Siri AI alongside the latest generation of Apple Intelligence features. Siri has long been popular with our users, with more than 2.5 billion requests every day. With Siri AI, we really have the Siri that we always wanted. It is primarily request-based today, but as we talked about at WWDC, it is built on a modern, orchestrator-driven architecture that gives us real room to expand its capabilities over time.

As far as agentic capabilities, we think these are promising tools for users. We just want to make sure that users are aware of what they are giving access to. We want to make sure this is done in a way that protects security and privacy. We are pushing really hard on that with Siri AI, but we are also really encouraged the fact that Apple devices, we think, are the best places to use all forms of AI.

Okay. Awesome. I appreciate that, John. Then just quickly as a follow-up, if we take a big step back, how should we think about the durability of services growth? I realize that was 10% in the September quarter. We are a little bit below that in the December quarter. As certain things like search evolves and regulatory changes impact App Store monetization, are there new services that we should be looking towards that you believe can become a more sizable offset to maybe take some pressure off these historically important revenue streams? Thanks so much, guys.

Yeah. Hey, Erik. It is Kevan. Thanks for the question. Let me take this one. Let me start by just talking through what we did. We talked about during the September quarter, services grew by 10% year over year, and we look at that relative to the June quarter. Foreign exchange was the main driver in that change on year-on-year growth rate sequentially. We continue to see strong performance in September in many of our service categories, all-time records in video, cloud services, payment services, and advertising, including our first-party Apple Ads, and September quarter record in music. But I think it is important to step back also and look at the progression of what we see in our services business over the last several quarters. I think it is an important backdrop.

We spoke about in the last call, we expected foreign exchange to be the largest driver of the change in the year-on-year growth rate from the March to September quarter. This ended up being a significant headwind of about 4 percentage points, and we expect additional sequential headwind of about another half of a percentage point for the services business as we go into the December quarter. We've also seen some factors that impacted the performance of the App Store. During the September quarter, the performance on the App Store was similar to the prior year, and we had a record number of paid subscriptions with double-digit growth for third-party apps on the App Store. At the same time, we did see some headwinds in mobile gaming that we've talked about before and expect to see those continue into the December quarter.

Keep in mind, we also made some changes to the App Store business model in certain countries, and in the U.S., we continue to operate under a court ruling impacting the link-out transactions. As we move ahead, we expect services growth to be between 8%-9%, as I mentioned in the prepared remarks, in the December quarter, and this outlook contemplates our best estimates on sequential headwinds, primarily from third-party licensing and the additional half percentage point of foreign exchange I just mentioned. I'll turn it over to John to talk about some perspectives as we look ahead.

Yeah. Thanks. I guess I'd like to add to that, Erik. I think fundamentally, we feel really good about the long-term opportunity that we have in our services business. We see continued growth in the install base of over 2.5 billion active devices, which is fundamentally the foundation for future growth as more customers are able to experience our products and services. Example of this, during the September quarter, App Store saw a record number of nearly a billion average weekly visitors, and we saw growth in the number of users who are paying for at least one service, reaching an all-time high. Another good example of this, in India, we recently launched Apple Pay with Axis Bank, bringing the seamless, safe, secure way to pay to one of the biggest markets in the world.

On top of all this, as we talked about, we think intelligence is going to be another opportunity as well. Overall, we're feeling really good about where we're headed in the long term.

Awesome, guys. Thanks so much for the color. Best of luck.

Thanks, Erik. Operator, could we take the next question, please?

Our next question is from Amit Daryanani from Evercore. Please go ahead.

Yep. Thanks a lot, and congrats on mine as well, John, on your first earnings call here. John, you sort of described the iPhone as the intelligent personal hub in your opening comments, and as personal AI agents become more prominent, do you see the potential for the primary customer relationship to shift from the device to the agent over time? Really, given Apple's integration of Apple silicon, hardware, and software, where do you see the greatest opportunity to combine things like personal context and on-screen awareness into an agent that can perhaps move beyond answering questions? How far along do you think Siri is in bringing those pieces together right now?

Yeah. Thank you, Amit, for the question. As I said before, and we said in our announcement, we really do think of the iPhone as the intelligent personal hub. I mean, if you think about it, so much of your personal data is on your iPhone, whether it's your contacts, your communications, health data, financial data, all of that. Siri can tap into that and help you access it in a way that's very secure and private and that nobody else has access to. Even Apple doesn't have access to it. We think that is a core kind of differentiator that we're excited about, and we're going to continue to push on that. I think this is an area that we feel really good about.

Got it. Kevan, the December quarter gross margin, I wonder if you'd spend a bit of time on that. I think if I exclude all the tariff refunds, you started implying gross margin would be down about 140 basis points sequentially at least. Can you separate how much of this is maybe commodity memory inflation versus mix versus, you called out Siri AI ramp costs as well? Could you just talk about what the different moving parts are as you think about the sequential gross margin? That would be helpful. Thank you.

Yeah, Amit, sounds good. Let me try to address that for you. As you alluded, for the December quarter, we talked about a gross margin outlook of between 45% and 46%. As you said, when you remove the benefit of the tariff refunds in September, the midpoint of the range is a decline sequentially in the magnitude you mentioned. We expect most of that decline to be driven by higher memory costs, and I'll give John kind of the mic here to give you perspective on that, and then I'll take the balance of your question.

Yeah, let me give you an overall view on memory. What we're seeing with memory pricing right now is unprecedented. As we said earlier in the September quarter, we did see higher memory costs as compared to the June quarter, which were partly offset by the benefit of carry-in inventory and lower costs on certain non-memory components. For the December quarter, we expect even higher memory costs, partly offset by a few factors. As you know, we changed the price on many of our products, including Mac and iPad at the end of June and iPhone in September, and these price increases provided some offset. We also expect to see some benefit from carry-in inventory in the December quarter as well, as well as lower costs on certain non-memory components. Looking beyond the December quarter, we see the pricing for memory purchases continuing to increase.

As we said before, we do believe we will see a decreasing benefit from the carry-in inventory on memory over time. There is one more thing I wanted to add. As we work to improve supply, our manufacturing purchase obligations have increased by $33 billion from June to the September quarter, which you will see in our annual filing when it comes out tomorrow. Now back to Kevan for the other parts of it.

Yeah, Amit, you mentioned Siri AI and what I alluded to in the prepared remarks. As we continue to roll out Siri AI to more customers, the associated cloud costs will be recognized through services cost of sales. Consistent with how we have always accounted for Maps, Siri, and iCloud for the devices we sell that include these bundled services, we defer a portion of the revenue and recognize it over the life of the device. Our hardware deferrals as of the December quarter will reflect the addition of Siri AI. Both of these items will have an impact to the gross margin. As always, we look to continue to make the investments necessary to support the business, and we also see a wide range of ways that AI can contribute to revenue growth over time.

On the product side, we feel AI offers a compelling reason for customers to upgrade and switch in order to get the latest capabilities, and we also feel there are opportunities across third-party apps and partnerships as well as first-party opportunities, as John highlighted earlier, with the expanded access to server-side features of Siri AI and Apple Intelligence features as well.

Thank you, Amit. Operator, could we have the next question, please?

Our next question is from Ben Reitzes from Melius Research. Please go ahead.

Hey, guys. Thanks. Hey, John, my first question, I wanted to ask you about your cash neutral policy. On one of the previous calls, you guys said that you weren't going to focus on that anymore and that that was no longer the policy. Under your leadership, what do you mean by that? Do you mean like you may go to net debt to buy back stock or do some M&A or go the opposite way and hoard some cash again? Your thoughts on that would be welcome. Thanks.

Yeah. Hey, Ben, it's Kevan. Let me take that one. As you know, we did talk about the fact that we're no longer using net cash neutral as a target. I think as we explained on the last call, the last time we talked about that was the fact that we think it makes sense to evaluate our cash and debt position independently and making sure we can optimize that and giving us the right flexibility. We remain committed to our capital allocation philosophy, which is we're going to invest everything we need to invest in our business and return excess cash to shareholders. We continue to maintain that discipline, and we do think this removal of net cash neutral gives us flexibility to optimize so we can make the right investments for the company.

All right, thanks. I wanted to ask about services. I realize you only guide one quarter at a time, but from the 8% to 9%, when you think long term, I was wondering if you are willing to say you think whether it can accelerate from there and whether AI could help you launch new services we have not thought of yet that are accretive to the growth rate there. Thanks.

Yeah, I think, Ben, on that one, I think you heard John talk about a lot of the long-term attributes that we really feel give us optimism about the long-term opportunity in our services business. Again, I think we talked about things like the installed base of over 2.5 billion active devices. We obviously saw a record number of weekly visitors in the App Store in the September quarter. We also continue to see growth in users who are paying for at least a service, reaching an all-time high in both transacting and paid accounts. We are excited about emerging markets. We talked about the launch of Apple Pay in India, but we continue to see good momentum in emerging markets in our services business, where we had double-digit growth.

We continue to feel really bullish about all the different elements as we look ahead to the longer arc of time. I think, as John mentioned, we are continuing to improve the features and reach of existing and new services as well. The example was the expansion of iCloud plans to include Apple TV and Apple Arcade, obviously reaching a lot of new potential subscribers. AppleCare One Family is another example of that. We continue to look for opportunities to grow our services business.

All right. Thank you, Ben. Operator, could we have the next question, please?

Apple (AAPL) Q4 2026 Earnings Call Transcript

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