Afternoon, and welcome to the Apple Q4 fiscal year 2025 earnings conference call. You can find a reconciliation of these measures in our fourth quarter earnings release, which is available on our Investor Relations website. Apple is proud to report $102.5 billion in revenue, up 8% from a year ago and a September quarter record. Services achieved an all-time revenue record of $28.8 billion, growing 15% from a year ago.
We also set a September quarter revenue record in emerging markets and an all-time revenue record in India. These results come at the close of an extraordinary year for Apple, in which we achieved an all-time revenue record of $416 billion for the fiscal year. We also launched a beautiful new software design that creates a unified experience across all of our platforms for the very first time. In Mac, we had a strong September quarter with revenue of $8.7 billion, up 13% year-over-year, driven by the strength of the MacBook Air.
Turning to services, as I mentioned earlier, revenue was $28.8 billion for the September quarter, 15% higher year-over-year and an all-time record. We saw double-digit growth in both developed and emerging markets and set new all-time records across advertising, App Store, cloud services, music, payment services, and video. Our revenue of $102.5 billion was up 8% year-over-year and is a new September quarter record. We set September quarter records in the Americas, Europe, Japan, and the rest of Asia-Pacific, and grew in the vast majority of markets we track.
| Metric | Period | Current guidance |
|---|---|---|
| Total company revenue growth | Q1 FY2026 (December quarter) | 10%-12% YoY, expected best quarter ever |
| iPhone revenue growth | Q1 FY2026 (December quarter) | double digits YoY, expected best iPhone quarter ever |
| Services revenue growth | Q1 FY2026 (December quarter) | similar YoY rate to FY2025 (~14%) |
| Gross margin | Q1 FY2026 (December quarter) | 47%-48%, including ~$1.4B tariff-related costs |
| Operating expenses | Q1 FY2026 (December quarter) | $18.1B-$18.5B |
| OI&E | Q1 FY2026 (December quarter) | around $150M, excluding mark-to-market of minority investments |
| Tax rate | Q1 FY2026 (December quarter) | around 17% |
| Mac | Q1 FY2026 (December quarter) | very difficult compare against prior-year M4 MacBook Pro, Mac Mini and iMac launches |
| Metric | YoY | Note |
|---|---|---|
| iPhone revenue | +6% | iPhone 16 family strength with September quarter records in many emerging markets and an all-time record in India, despite supply constraints on several iPhone 16 and 17 models |
| Mac revenue | +13% | MacBook Air strength; growth in every geographic segment and strong double-digit growth in emerging markets |
| iPad revenue | flat (0%) | Difficult compare against the prior-year full-quarter impact of the iPad Air and iPad Pro launch, offset by better-than-expected iPad performance |
| Wearables, home and accessories revenue | flat (0%) | Growth in Watch and AirPods offset by accessories lapping strong prior-year iPad-launch performance |
| Services revenue | +15% | Broad-based all-time records across advertising, App Store, cloud services, music, payment services and video; sequential acceleration across most categories (organic, no one-time items) |
| Greater China revenue | -4% | Driven by iPhone supply constraints rather than demand; store traffic up significantly, return to growth expected in December quarter |
| Company gross margin | 47.2% (up 70bps sequentially) | Favorable mix; includes ~$1.1B tariff-related costs in line with prior estimate |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| iPhone supply constraints | Not a factor in prior quarter | Constrained on several iPhone 16 and 17 models on very strong demand (not a ramp issue); China decline attributed to supply; large iPhone 17 backorders exiting Q4 | — |
| China | -4% (September quarter) | Store traffic up significantly, iPhone 17 well received; return to growth expected in December quarter; subsidies a favorable factor within price caps | — |
| Tariffs | ~$1.1B actual in September quarter (in line with estimate) | Guiding ~$1.4B for December quarter; reflects China tariff moving from 20% to 10%, making it non-linear to volume | — |
| AI investment / CapEx | Guided rising AI investment | OpEx up 11% YoY on R&D and guided up sharply to $18.1B-$18.5B for December; built out Private Cloud Compute in first-party data centers in 2025; server plant in Houston started; hybrid model retained | — |
| Memory / component costs | — | Slight tailwind on memory and storage prices; new products carry a slightly higher cost structure that the team drives down over time | — |
| Personalized Siri | Expected next year | Making good progress, still expected next year; open to multi-pronged approach including own foundation models, partners and M&A | — |