- Apple reported net sales of $114.48 billion and a profit of $2.10 per share, compared to net sales of $113.35 billion and a profit of $1.99 per share expected by Wall Street analysts, per Yahoo Finance
- Services reached an all-time high with $31.57 billion coming in for Apple TV, Apple Music, iCloud, the App Store and more
- The tech conglomerate welcomed new CEO John Ternus after taking over for Tim Cook on Sept. 1
Apple reported fourth quarter earnings that saw the tech giant reach an all-time high in services with $31.57 billion coming in for Apple TV, Apple Music, iCloud, the App Store and more.
That’s up nearly 10% from a year ago, when the services division brought in $28,750 billion. Apple has tallied over 1.5 billion subscriptions, up double digits since a year ago.
“I’m delighted with where our services business is today and where it’s going,” CEO John Ternus said on Monday’s earnings call, his first time helming the call. “And 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.”
Wall Street analysts estimated Apple to report a net revenue of $113.35 billion and a profit of $1.99 per share, per Yahoo Finance, but the tech giant blew past those estimates to reach a net revenue of $114.48 billion and earnings of $2.10 per share, reaching a September quarter revenue record.
Revenue was up 11.72% from a year ago and earnings were up 13.51% from a year ago. Net income came in at $30.71 billion, rising from the previous year’s income of $27.47 billion.
“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,” Ternus said.
Services soar
During Monday’s earnings call, Ternus flaunted Apple TV’s Emmys dominance, with the company’s 78 primetime Emmy wins in September boosting the streamer to earn “more awards than any other network.”
“‘Widows Bay,’ the show of the summer, became the most awarded comedy ever in a single year,” Ternus said. “We’re very excited about our program[ming], from fan favorites like ‘Slow Horses’ and ‘Ted Lasso’ to the upcoming film ‘Being Heumann.’ To date, Apple … [has] earned more than 900 wins and over 2,800 nomination.”
Beyond Apple TV, video, cloud services, payment services and advertising saw all-time highs and Apple music saw a September quarter record.
“Fundamentally, we feel really good about the long-term opportunity that we have in our services,” Ternus said. “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.”
iPhone sales drives gains
The biggest driver for the revenue growth was iPhone sales, also hit a September quarter revenue record with $57.58 billion, rising from the $49.03 the category brought in a year ago.
The quarter only included a few weeks worth of sales from the new iPhone 18 Pro Max, and the quarter ended before the iPhone Duo launched on Oct. 23. Ternus called the iPhone Duo “the most transformational iPhone since the original.”
“We’ve been thrilled with the early response from reviewers and customers, and we are working hard to get iPhone Duo into customers’ hands,” Ternus said. “We have also been thrilled with the response of iPhone 18 Pro and Pro Max. It’s 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.”
More to come …