Apple's holiday-quarter revenue outlook came in above Wall Street expectations, but it still failed to win over investors who had spent months driving the stock higher.
On Monday's earnings call, Apple said revenue for its fiscal first quarter ending in December would rise 7% to 10%. Analysts on average had expected growth of 6.1%, according to compiled data. Apple shares fell about 4% after hours, underscoring the market's high expectations for the company.
A rally since the end of June added roughly $1 trillion to Apple's market value, with investors betting the company would deliver a very strong earnings report. Even so, the first earnings report under CEO John Ternus presented investors with a mixed picture.
Revenue growth in the September quarter slowed from 16% in the prior three months, with the iPad, China and wearables businesses disappointing, though the iPhone business, Apple's largest revenue source, remained strong.
Although Apple's Greater China revenue rose 21% to $17.5 billion, it was still more than $1 billion below expectations. Ternus became CEO on September 1, so he oversaw operations during the final month of Apple's fiscal fourth quarter. He led the launch of the foldable iPhone Duo, the touchscreen MacBook Pro and the HomeView smart home hub, but none of these products go on sale until the current quarter ending in December.
Fiscal fourth-quarter iPhone revenue rose 17% to $57.6 billion, above the average estimate of $56.5 billion. That shows Apple weathered the impact of changes to its product launch schedule.
Apple typically launches several new iPhone models in September, but this time it released only the iPhone 18 Pro series. The standard iPhone 18 and the new iPhone Air will not arrive until the first half of 2027, while the foldable iPhone Duo did not launch until October 23, already in the next fiscal quarter.
Revenue from services, including music streaming, the App Store, iCloud subscriptions, Apple TV and other digital offerings, rose 9.8% to $31.6 billion. That matched expectations. Earnings per share were $2.10, above the expected $2.00.
Mac revenue rose 24% to $10.8 billion, far above the average estimate of $9.7 billion. A series of new products is expected to extend that momentum. The company's touchscreen MacBook Pro, an updated iMac and a new entry-level MacBook Pro will ship on November 6.
iPad revenue was $6.23 billion, below the $6.9 billion estimate. A new iPad mini will launch in the current quarter, while a new iPad Air, an entry-level tablet and an updated iPad Pro will arrive next year.
Revenue from the wearables, home and accessories business was $8.3 billion, down 7.9% year over year. That was below the $9 billion estimate. Apple launched AirPods 5 earphones and two smartwatches in the fiscal fourth quarter, but those product updates were relatively limited.
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