Apple posts a record $114.5 billion quarter in Ternus’s first report, but shares fall on margin guidance and iPhone Duo supply

Apple reported record September-quarter revenue of $114.5 billion³, up 12% from $102 billion a year earlier⁸. It was the first earnings call for chief executive John Ternus^7,10. Revenue growth came on sustained demand for its smartphones¹⁰.

iPhone revenue was $57.6 billion, growing 17% despite supply constraints and foreign-exchange headwinds, according to the earnings call^11,12; one analysis put iPhone growth at 18%⁴. Services revenue was $31.6 billion^11,12. iPhone and Mac drove nearly 90% of revenue growth⁵.

Reports differ on how the quarter compared with forecasts. Some describe revenue as stronger than expected and beating estimates^8,10, while another says revenue missed estimates and earnings per share beat them⁹.

Why the shares fell

The shares fell 3.8% in after-hours trading, a move attributed to supply constraints on the iPhone Duo and one-time tariff benefits⁹. Margin guidance was also cited⁵, and the company’s revenue guidance weighed on the stock².

Tariff refunds and a lower tax rate supplied most of the earnings-per-share beat⁵. The company said its earnings included 5 cents per share from tariff refunds⁸, which followed the Supreme Court’s decision to invalidate Trump’s tariffs¹¹. Apple received a majority of the tariff refunds¹³. Chief financial officer Kevan Parekh explained the role of the refunds on the call³.

For the holiday quarter, Apple said memory costs and spending on Siri AI will weigh on profit margins³. It guided December-quarter revenue to high-single-digit growth from a year earlier⁴ and forecast its biggest revenue quarter ever despite supply constraints⁶. Apple cautioned that the outlook rests on assumptions about global tariffs⁶.

What to watch

Apple admitted that “constraints” are affecting supplies of the iPhone Duo and said it is unsure when it will get more of the foldable phones ahead of Christmas¹. The device sells for $2,000¹⁴.

With tariff refunds lifting this quarter’s margins, the December quarter is described as the test of clean earnings⁷. Nvidia, meanwhile, regained its crown over Apple after just four days, as Apple’s shares fell on the company’s revenue guidance². Investors will be watching how far memory-chip costs and iPhone Duo supply eat into the record revenue Apple has promised^3,6.