Apple forecasts biggest revenue quarter ever despite supply constraints, but warns margins face pressure at 9to5mac

September quarter sets records

Apple reported fiscal Q4 2026 revenue of $114.5 billion, a 12% increase from a year earlier. Net profit was $30.71 billion, with both figures setting September-quarter records. The company said these results came amid supply constraints affecting iPhone, Mac and iPad, as well as rising memory costs. On its earnings call, Apple described stronger-than-expected demand for Mac and iPad and shortages of the new iPhone Duo.

Holiday quarter outlook

CFO Kevan Parekh said Apple expects December-quarter revenue to rise 7% to 10% year over year, based on its best assessment of constrained supply. He said the period is expected to be the best for revenue in company history.

That growth range implies fiscal Q1 2027 revenue of $153.82 billion to $158.13 billion. Compared with the year-ago quarter, that would mean an increase of $10 billion to $14.4 billion.

Costs and risks remain

Parekh said higher memory costs were pressuring profit margins. Apple also pointed to limited flexibility in its supply chain and continuing shortages of the iPhone Duo. For Services revenue, Parekh identified third-party licensing and foreign exchange as primary headwinds. Higher memory costs and costs tied to the Siri AI ramp are also expected to weigh on gross margins.

Forecast depends on conditions

Apple said its outlook assumes global tariff rates, policies and their application stay as they were during the call. It also assumes the global economic outlook does not worsen. The company’s revenue forecast therefore comes with supply and cost pressures still in view, alongside the stated assumptions about tariffs and the broader economy.