Apple Reports Record $114.5 Billion Revenue Under CEO John Ternus

Apple Inc. reported fiscal fourth-quarter revenue of $114.5 billion and a profit of $30.7 billion, exceeding Wall Street expectations. This marked the first financial report under CEO John Ternus, who succeeded Tim Cook in September. The results contributed to a record fiscal year with total revenue of $479 billion, driven by a September quarter record for iPhone sales and an all-time high for Services.

Despite the revenue beat, the company is managing unprecedented surges in memory-chip costs, which former CEO Tim Cook described as a "100-year flood." To offset these expenses, Apple implemented price increases on iPhones, Macs, and iPads. CFO Kevan Parekh noted that while gross margins reached 47.9%, this was partially bolstered by tariff refunds. Apple forecasts a margin decline to 45% to 46% in the December quarter as component costs continue to rise.

Under Ternus, the company accelerated its product cycle, launching the iPhone Duo foldable phone, a touch-screen MacBook Pro, and the HomeView hub. While demand for the $1,999 iPhone Duo has been extraordinary, the device has faced significant supply constraints and reports of screen cracking, prompting Apple to offer replacements. Geographically, strong growth in the Americas and Europe was offset by misses in Japan and Greater China, where revenue growth hit a one-year low.