Apple Nets Record September-Quarter Revenue But Profit Comes in Shy of Estimates

Apple (AAPL) reported fiscal fourth-quarter results after the bell Thursday that beat analysts’ revenue expectations but missed on profit.

The iPhone maker delivered record September-period revenue of $94.93 billion, up 6% year-over-year and above the $94.58 billion consensus estimate of analysts polled by Visible Alpha.

Net income was $14.74 billion, or 97 cents per share, below expectations of $22.49 billion, or $1.48 per share. After stripping out a one-time income tax charge of $10.2 billion to reflect the impact of the reversal of the European General Court’s State Aid decision, adjusted EPS came in at $1.46.

Apple produced $46.22 billion in iPhone revenue, above expectations of $45.32 billion. However, the iPhone 16’s September 20 release date came with less than two weeks to go in the quarter, meaning the bulk of that came from iPhone 15 and older models. 

Analysts Look Ahead To iPhone 16 Figures

The results come as the company is rolling out Apple Intelligence features, including a free iOS update for the iPhone 16 and other devices released Monday. 

A clearer picture of iPhone 16 sales will come next quarter, with the bullish case being an “AI-driven super cycle,” analysts at Wedbush wrote. The firm estimates that about 300 million iPhones globally have not been upgraded. 

Shares of Apple fell more than 1% in extended trading. They had been 17% higher this year through Thursday’s close.