Apple beat on sales, then fell: tariff refunds padded the margin
Revenue rose 12% and iPhone sales jumped 17%, yet shares slid after hours. About one point of Apple's 47.9% gross margin was tariff refunds, and the company expects the margin to fall to 45–46% next quarter.
Apple's fiscal fourth-quarter report, released after the close on November 2, 2026, looked strong on the first line. According to Apple's press release, revenue for the quarter ended September 26 was $114.5 billion, up 12% from a year earlier, and diluted earnings per share were $2.10, up 14%. Fortune reported that iPhone revenue was $57.58 billion, up 17%. It was the first report under CEO John Ternus.
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