— Apple projected higher iPhone and overall revenue for the upcoming holiday quarter, exceeding Wall Street expectations, as strong demand for its new iPhone 17 models fuels optimism despite ongoing supply constraints and shipping delays in China.
Chief Executive Tim Cook said in an interview that he expects iPhone sales to grow by double digits year over year during the current fiscal first quarter of 2026, with overall company revenue forecast to rise 10–12%. Analysts had anticipated more modest growth of 9.8% for iPhone sales and 6.6% for total revenue, according to LSEG data.
Apple shares rose 3.7% in after-hours trading Thursday following the upbeat outlook.
The company’s latest results revealed that while supply issues caused Apple to miss iPhone sales forecasts for its fiscal fourth quarter, strong performance in other segments — including new AI-powered AirPods and the services division — helped overall profit exceed market expectations.
For the quarter ended September 27, Apple reported revenue of $102.47 billion and earnings of $1.85 per share, slightly above analyst forecasts of $102.26 billion and $1.77 per share. iPhone sales came in at $49.03 billion, just below expectations of $50.19 billion.
Cook attributed part of the shortfall to regulatory delays in China, which postponed the launch of the iPhone Air — the company’s thinnest and most advanced design yet — until October 22. “The China delay was the primary reason that sales contracted there,” Cook said. “However, we’re very enthusiastic about China, and we expect to return to growth in Q1.”
He added that Apple is still racing to meet high global demand. “Currently, we’re experiencing supply constraints on several iPhone 17 models and filling orders as fast as we can. It’s a good problem to have.”
Apple’s services division, which includes Apple TV and its digital media business, generated $28.75 billion in revenue, above estimates. Sales in accessories — including AirPods and Apple Watch — rose to $9.01 billion, also topping projections.
While Apple continues to face tariff-related costs tied to US-China trade tensions, Chief Financial Officer Kevan Parekh said margins remain strong, forecasting gross margins of 47–48% for the current quarter.
Looking ahead, Apple is banking on momentum from its iPhone 17 lineup — including the lightweight iPhone Air and upgraded Pro models — to drive record holiday sales. Cook also confirmed that major upgrades to Siri and other AI features are coming next year, signalling the company’s renewed push into artificial intelligence.
“The expectation of a strong holiday quarter gives Apple a runway to reaffirm demand,” said Natalie Hwang of Apeira Capital. “The real test will be turning that momentum into a durable advantage in AI and device innovation.”
