Apple (AAPL) reported its fourth quarter earnings after the bell on Monday, beating expectations on the top and bottom lines on strong iPhone sales.

This is Apple's first earnings call with new CEO John Ternus, who took over the role from Tim Cook on Sept. 1.

For the quarter, Apple reported earnings per share (EPS) of $2.10 on revenue of $114.48 billion. Wall Street was looking for EPS of $2 on revenue of $113.46 billion, according to Bloomberg analyst consensus estimates.

The company saw EPS of $1.85 and revenue of $102.46 billion in the same period last year. Greater China revenue fell short of projections, coming in at $17.54 billion versus estimates of $18.75 billion. Apple's iPhone sales came in at $57.58 billion versus an estimate of $56.48 billion.

Services, the company's second-largest segment, saw revenue of $31.57 billion compared to a projected $31.58 billion. Apple's Mac business brought in $10.79 billion. Analysts were looking for $9.69 billion.

Wearables and iPad generated $8.3 billion and $6.23 billion.

Apple stock fell 4% before the bell on Tuesday.

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Mac and iPad will be supply constrained in the December quarter Apple says it expects to see supply constraints on the Mac and iPad in the December quarter driven by memory as a result of higher demand than the company expected.

Apple pleased with performance out of Greater China Apple says it saw strong sales out of Greater China coming from the iPhone and Mac. Mac revenue saw strong double-digit growth and Greater China revenue was up 28% year-over-year. Still, September quarter revenue fell short of Wall Street's expectations.

Apple's purchase obligations increase to contend with memory pricing Khan says that Apple has increased its purchase obligations to improve memory supply by $33 billion from the June quarter to the September quarter.

Apple can't tell when supply of iPhone Duos will catch up with demand COO Sabih Khan says it's hard to predict when supply and demand for the iPhone Duo will be in balance. He added that Apple saw supply constraints for the iPhone, Mac, and iPad, which were related to the availability of its advanced processing nodes. A large queue forms outside the Apple shop in Covent Garden, London as people wait in line to buy the two new iPhones. (Photo by John Stillwell/PA Images via Getty Images) · John Stillwell - PA Images via Getty Images

Ternus says memory pricing is 'unprecedented' Apple CEO John Ternus pointed out the massive increase in memory pricing due to the AI build-out. "What we are seeing with memory pricing right now is unprecedented," he told investors. The company saw higher memory costs in the September quarter compared to the June quarter, but had the benefit of carry-in inventory and benefits of certain non-memory components. For the December quarter, Ternus expects even higher memory costs partly offset by product pricing, as well as carry-in inventory in December. Beyond December, he says the company sees memory prices continue to increase and a decreasing benefit from carry-in inventory.

Ternus on AI agents and Apple's stance Ternus says AI agents are promising tools for users, but that Apple wants to make sure they are aware of what they are giving them access to when they use them. "We want to make sure this is done in a way that protects security and privacy."

Apple COO Sabih Khan joins call Apple CEO John Ternus says he has asked COO Sabih Khan to join the company's earnings call to help answer investor questions.

Apple CFO Kevan Parekh says he expects total revenue for the December quarter to grow between 7% and 10% year-over-year and expects it to be the best quarter ever for the company. Services revenue will grow between 8% and 9%, with headwinds from third-party licensing and foreign exchange. Gross margin will be between 45% and 46%, primarily due to higher memory costs associated with the ramp of Siri AI. Operating expenses are expected to be between $20.4 billion and $20.8 billion.

Apple's cash position CFO Kevan Parekh says Apple ended the quarter with $137 billion in cash and marketable securities and $80 billion in total debt.

Wearables and iPad installed base hit new all-time highs CFO Kevan Parekh explained that both Apple's Wearables and iPad installed bases reached all-time highs, driven by new devices in each category. A staff holds the Apple Watch Series 12 is seen at the iPhone launch day at the Apple Fifth Avenue store in New York City on September 18, 2026, for the debut of the iPhone 18 Pro and iPhone 18 Pro Max. (Photo by TIMOTHY A. CLARY / AFP via Getty Images) · TIMOTHY A. CLARY via Getty Images

CFO Kevan Parekh talks memory prices and tariff benefit Apple CFO Kevan Parekh said that without tariff refunds, company and product gross margins would have been 1% lower sequentially due to higher memory costs. As of the September quarter, Apple has received the majority of refunds related to tariffs it previously paid.

Ternus points to US manufacturing Ternus said that Apple now supports more than 450,000 American jobs via thousands of suppliers across 50 states. Quality control employees watch as lengths of glass move down the line during a tour of Corning's iPhone glass manufacturing facility Friday, Sept. 12, 2025, in Harrodsburg, Ky. (AP Photo/Jon Cherry) · ASSOCIATED PRESS

Ternus applauds Apple TV+ Emmy wins Apple's Ternus said the Emmys were a night to remember for the company, with its shows winning more awards than any other network. He also shouted out "Widows Bay," which was the most awarded comedy ever in a single year. Katie Dippold wins the Outstanding Writing for a Comedy Series Award for "Widows Bay" at the 78th Emmy Awards held at Peacock Theater on September 14, 2026 in Los Angeles, California. (Photo by Gilbert Flores/Variety via Getty Images) · Gilbert Flores via Getty Images

Ternus says Macs sold well throughout fiscal 2026 According to CEO John Ternus, Apple sold more Macs in fiscal 2026 than in any other year. Apple also set a record for new Mac customers in the September quarter. LOS ANGELES, CALIFORNIA - OCTOBER 28: The new touchscreen MacBook Pro is displayed at the Apple "Pro and Tell" event on October 28, 2026 in Los Angeles, California. Apple CEO John Ternus unveiled the new MacBook Pro with PROLED XDR Display, the first-ever touchscreen Macbook, at the event amid a flurry of new product releases ahead of the 2026 holiday shopping season. (Photo by Mario Tama/Getty Images) · Mario Tama via Getty Images

Upgraders are growing Apple set a September-quarter record for upgraders worldwide, including in the US and China. Customers wait in line to purchase Apple's new foldable iPhone Duo phone on the launch day at the Apple store in Austin, Texas, US, October 23, 2026. REUTERS/Jan Sonnenmair · REUTERS / REUTERS

Wall Street has a 'big concern' about Apple's next quarter: D.A. Davidson's Gil Luria Gil Luria, head of tech research at D.A. Davidson, weighs in on Apple's results.

Apple's massive installed base CEO John Ternus says that Apple now has an installed base of more than 2.5 billion active devices around the world.

Apple secured its biggest education deal ever Ternus said Apple inked its biggest education deal yet, bringing 170,000 MacBook Neos to teachers and students in the Philippines. "Opportunities like this bring more users into our ecosystem and help fuel growth across our business." Apple's new entry-level Mac laptop, the MacBook Neo is on display during an event in New York City, U.S., March 4, 2026. REUTERS/Shannon Stapleton · REUTERS / REUTERS

Ternus touts new products Apple CEO John Ternus says the company just completed one of its most prolific launch periods in its history, including the iPhone Duo, iPhone 18 Pro and Pro Max, AirPods 5, new Apple Watches, and HomeView. He also called out Apple's Siri AI. "I'm feeling great about the opportunities ahead for Apple." FILE PHOTO: New Apple CEO John Ternus holds the new foldable iPhone Duo during Apple's event at the Steve Jobs Theater in Cupertino, California, U.S. September 9, 2026. REUTERS/Carlos Barria/File Photo · Reuters / REUTERS

Apple had its best year yet "Apple delivered September quarter records for net income and EPS. Our record September quarter capped off a strong fiscal 2026, with all-time record revenue of $479 billion and double-digit EPS growth," CFO Kevan Parekh said in a statement.