Apple Q4 earnings: 5 key things investors will watch

Apple will announce its fiscal fourth-quarter 2026 results on Monday, November 2, after the US market closes. Investors will assess early demand for the iPhone 18 Pro lineup, the performance of its Services business and the company's outlook for the holiday quarter. The earnings announcement will also mark the first results presentation under new CEO John Ternus, who succeeded Tim Cook on September 1. (Sources: Yahoo Finance, BigGo Finance)

Analysts expect Apple to report revenue of around $113.4 billion, compared with $102.46 billion in the year-ago quarter. Earnings per share (EPS) are projected at approximately $2, up from $1.85 a year earlier. The estimates imply revenue growth of around 10.7% and EPS growth of about 8%.

iPhone revenue is expected to reach approximately $56.48 billion, representing growth of around 15% year on year. The iPhone 18 Pro and Pro Max went on sale in September, leaving roughly two weeks of sales in the September quarter. Investors will look for evidence that new-device demand can sustain Apple's smartphone growth momentum.

Apple's Services division is expected to generate more than $31.58 billion in revenue. The Mac business is forecast to contribute $9.69 billion, while wearables and iPad revenue are estimated at $8.99 billion and $6.83 billion, respectively. Investors will monitor Services growth and profitability for signs of the resilience of Apple's recurring revenue streams.

Apple's first foldable smartphone, the iPhone Duo, went up for preorder on October 16 and reached stores on October 23. The device's sales fall outside the September quarter, but management could provide early indications of customer demand. The December quarter will offer a fuller picture of the new product's contribution to Apple's revenue.

Memory-chip shortages and higher component costs remain important concerns for Apple's hardware business. Supply constraints could limit the company's ability to meet demand for its latest devices. Foreign exchange pressures and the impact of higher input costs on margins will also be closely monitored.

Apple recently overtook Nvidia to reclaim the position of the world's most valuable listed company, with a market capitalisation of around $5.03 trillion. Its shares have gained approximately 30% over the past 12 months, outperforming several major technology peers. Apple's relatively limited exposure to the massive data-centre spending undertaken by AI companies has helped insulate its stock from some AI-related market volatility.

Investors will focus on management's assessment of iPhone demand, product availability and the impact of rising memory costs. The December quarter is particularly important as it includes the holiday shopping season and the initial contribution from the iPhone Duo. Apple's ability to sustain revenue growth and protect margins will be central to investor sentiment following the results, with forward guidance potentially mattering as much as the September-quarter numbers.

(Disclaimer: This slideshow is based on inputs from agencies. These do not represent the views of The Economic Times)