MacDailyNews presents live notes from Apple’s Q426 Conference Call with analysts starting at 2pm PT / 5pm ET today, November 2, 2026.
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Apple’s live conference call webcast will begin at 2pm PT / 5pm ET here.
Apple today posted fourth quarter revenue of $114.5 billion, up a whopping 12% year over year, and quarterly diluted earnings per share (EPS) of $2.10, up an impressive 14% year over year (which included a favorable impact of $0.05 from tariff refunds).
Prior to Apple’s earnings release, Wall Street was looking for revenue of $113.39 billion and diluted EPS of $1.99.
Live notes in chronological order:
• AAPL after-hours: $326.75, -11.57, (-3.42%) @ 5:59:24 PM EST
• End of conference call
• Ternus: We are focused on building the best products; memory prices have raised costs; Apples affordability programs are definitely an important factor
• Q: Trade-in and payment plans due to higher prices?
• Mac: record year for both upgraders and new to Mac customers
• Our installed base of active devices as reached an all time high in Greater China
• Ternus: 21% revenue increase in China, driven by iPhone and Mac
• Q: China?
• Ternus: We are very proud of our Mac and our iPads; we don;t have any fundamentally different changes and, if we did, we wouldn’t talk about it anyway
• Q: Mac and iPad to ever converge?
• Ternus: We fell confident that we are spending what we need to spend to achieve our roadmap
• Parekh: We continue to invest in our product roadmap
• Q: R&D investment?
• Parekh: We did guide 7%-10% growth YoY for Dec. quarter
• Q: Supply chain and component availabilities; quantity vs. price issues?
• Ternus: Siri AI is primarily request based currently; Apple sees opportunities to add mroe capabilites to Siri AI while preserving privacy
• Q: Agentic AI, how do you see that evolving?
• We expect memory costs to continue to be a challenge in the Dec. quarter
• Q: Margin impact due to memory constraints?
• We continue to work on memory supply?
• Q: Memory supply?
• Dec. we expect supply constraints on Mac and iPad due to memory constraints
• Sept. Supply constrains on iPhone, Mac, and iPad due to high levels of demand on TSMC nodes
• Q: Supply constraints cause(s)?
• We are thrilled with initial response to iPhone Duo; it’s hard to predict when supply and demand will be in balance
• Q: iPhone Duo demand? Supply issues?
• Parekh: We do envision Siri AI to happen on-device and on server side; the mix is still too early to tell
• Q: How is token consumption for Siri AI?
• Ternus: We’re trying to manage memory costs with inventory, pricing, and other methods
• Q: Memory procurement changes? Will pricing continue to be changed based on memory costs?
• Parekh: We continue to feel really bullish about Services over time
• Q: Can AI help you launch new services we haven’t thought of yet?
• Parekh: net cash neutral is no longer a target. It gives us the flexibility to invest strategically
• Q: Cash neutral policy?
• Apple continues to invest in the business and sees the opportunities in AI
• Parekh: As we continue to roll out Siri AI, Apple’s costs will increase and impact gross margin
• Beyond the December quarter, we see the pricing for memory to continue to increase
• We expect even higher memory costs in December quarter
• Ternus: What we are seeing with memory costs is unprecedented
• Parekh: 45-46% gross margin – decline is due to memory costss
• Q: Gross margin decline?
• Siri AI can help you tap into your personal data, but in a secure, private way
• Ternus: We think of the iPhone as the intelligent personal hub for users
• Q: Potential for users to shift from device to AI agents over time?
• Ternus: We feel really good about the long term growth of Services
• We expect Services growth to be between 8-9% in the Dec. quarter
• Parekh: Services grew 10% YoY
• Q: How durable is Services growth? New Services coming?
• Ad far as agentic use, we want to protect users’ privacy and security
• This is the Siri we always wanted
• Ternus: We were incredibly excited to introduce Siri AI
• Q: What role do you want Apple and SiriSI to play; risks?
• iCloud+ offers some good opportunities related to Apple Intelligence
• Ternus: We just had an all-time record for cloud services
• Q: iCloud+ becoming more important?
• Ternus: We were thrilled to introduce the Duo and Pro models this year; we don’t comment about future roadmaps
• Analyst Q: iPhone 18, where is it?
• The dividend is payable on November 16, 2026, to shareholders of record as of the close of business on November 12, 2026.
• Apple’s board of directors has declared a cash dividend of $0.27 per share of the company’s common stock.
• Tax rate around 17%
• Apple expects 7-10% growth in the December quarter, expects best revenue quarter in company history, Services growth for Dec. quarter: 8-9% YoY
• Enterprises are continuing to deploy Apple devices (Parekh reviews successes during the quarter)
• 1.5 billion subscriptions hit during quarter – an all-time high
• Services revenue set an all-time revenue record in the majority of markets that Apple tracks
• Wearables also faced a difficult compare
• iPad revenue decline due to supply constraints and difficult compare
• MacBook Neo and MacBook Pro drove record Mac revenue
• Best revenue year ever for iPhone in every reportable segment
• Vast majority of tariff refunds have now been received
Net Sales by Reportable Segment
• Americas: $48.680B
• Europe: $32.008B
• Greater China: $17.539B
• Japan: $6.540B
• Rest of Asia Pacific: $9.710B
• Parekh reviews results.
• Ternus: “We have everything we need to become extraordinarily successful.”
• Apple supports more than 450,000 American jobs across all 50 states.
• Apple is doing more and more manufacturing in the United States.
• AAPL after hours: $338.81, +0.49, (+0.14%) @ 5:17:13 PM EST
• Ternus: People love Apple products that are “just plain better.”
• Apple Music Hall is a beautiful new venue for intimate shows
• Apple Pay recently launched in India, a huge market
• 78 Primetime Emmy Awards for Apple TV this year
• Services up 10% YoY and an all-time record
• Ternus reviews Apple’s recent home automation products
• AirPods 5 offers the best ANC in an open-ear design
• New Apple Watch models offer the most accurate heart rate sensing in a wearable
• Apple Watch is a powerful way to help take care of your health
• The all-new iPad mini was just recently unveiled
• Ternus promotes Apple Silicon
• Apple sold more Macs in 2026 than in any other fiscal year
• Mac was up despite supply constraints; emerging markets set a Sept. quarterly record
• Customers are embracing the powerful iPhone 18 Pro and iPhone 18 Pro Max
• Apple is excited to see more and more apps designed for iPhone Duo
• Ternus talks up iPhone Duo
• iPhone delivered best fiscal year ever for upgraders
• iPhone: $57.583 billion (vs. $49.025 billion YoY)
• Mac: $10.792 billion (vs. $8.726 billion YoY)
• iPad: $6.229 billion (vs. $6.952 billion YoY)
• Wearables, Home and Accessories: $8.300 billion (vs. $9.013 billion YoY)
• Services: $31.573 billion (vs. $28.750 billion YoY)
• Ternus: Everything we do at Apple is for our users.
• Ternus: Mac is what brought me to Apple
• Mac is having an AI moment all its own
• We are very pleased with the reviews Siri AI has received
• Siri AI marks a new chapter for AI and Apple: powerful, personal, and private
• 2.5 billion active devices install base
• We recently inked our biggest education deal ever: Philippines: 170,000 MacBook Neo units to teachers and students
• Siri AI is expanding to other languages rapidly
• Ternus: This is an exciting time for Apple (describes a slew of newly introduced products)
• Diluted earnings per share was $2.10, up 14 percent year over year
• Apple posted record quarterly revenue of $114.5 billion, up 12 percent year over year
• Ternus: Hello, everyone. It’s a privilege to join you for the first time as Apple’s CEO.
• Apple CEO John Ternus and COO Kevan Parekh will conduct today’s conference call.
• Conference call begins.
• AAPL after hours: $338.93, +0.61, (+0.18%) @ 4:56:16 PM EST
• AAPL after hours: $338.74, +0.42, (+0.12%) @ 4:46:08 PM EST
• AAPL after hours: $338.09, -0.23, (-0.07%) @ 4:41:55 PM EST
• AAPL close: $338.32, -6.31, (-1.83%) @ 4:00:01 PM EST
