Apple reported its fiscal fourth-quarter results with revenue of $114.48 billion and earnings per share of $2.10, surpassing analyst expectations. This marked the first earnings release under CEO John Ternus, who took over from Tim Cook on September 1. Key product lines were mixed; iPhone revenue was strong at $57.58 billion, beating estimates, and Mac revenue surged nearly 24% to $10.79 billion. However, iPad sales declined 10% to $6.23 billion, missing forecasts, while wearables, home, and accessories revenue fell short at $8.3 billion.

Despite exceeding revenue projections, Apple disappointed investors with a weaker gross margin outlook for the December quarter, forecasting 45% to 46%, below the estimated 46.3%. The company attributed margin pressures to higher component costs, especially for memory, amid a global supply crunch that also led to a broad price increase across Apple’s product lineup in June, including a $100 hike on iPhones. CFO Kevan Parekh guided revenue growth of 7% to 10% for the next quarter, above analyst estimates, but highlighted slower growth in services, projecting an 8% to 9% increase.

John Ternus emphasized the company’s robust product launch pipeline and expressed confidence in Apple’s future, calling the past fiscal year the best ever. Under his leadership, Apple introduced new hardware including iPhones, Macs, and the AI-enhanced Siri. However, the rollout of the new iPhone Duo foldable phone was delayed until after the quarter ended and has faced early quality concerns, including reports of screen damage, which may challenge Apple’s brand reputation. Ternus acknowledged the price increases as a reluctant but necessary move to offset rising costs.

The quarter also saw strong growth in Apple’s Greater China market, up 21% year-over-year, driven by iPhone and Mac sales. Meanwhile, the services segment showed its slowest growth since 2022, highlighting potential headwinds. Industry analysts remain cautious due to uncertainty around iPhone cycles, limited AI monetization, and margin compression, though Apple continues to stand out among megacap tech stocks with a balanced investment approach. Apple’s shares fell about 3% in after-hours trading following the earnings release.