The technology group said fiscal fourth-quarter revenue reached $114.48 billion, exceeding analysts’ estimate of $113.39 billion, while earnings per share of $2.10 also beat the $1.99 consensus, according to LSEG data. Early demand for the iPhone 18 Pro range and higher product prices helped support the performance.

iPhone revenue was $57.58 billion, ahead of expectations, while Mac sales also exceeded forecasts. Services revenue came in at $31.57 billion, broadly in line with estimates of $31.58 billion. Apple said services had reached a record level, although its outlook for the current quarter was less robust than analysts had anticipated.

The company forecast services revenue growth of 8% to 9% for the December quarter, below market expectations of 10.7%. It also projected gross margin of 45% to 46%, down from 47.9% in the latest quarter, as higher memory prices and costs associated with its artificial-intelligence services weigh on profitability.

Ternus, which took over in September, is managing a period of product and operating changes. Apple has adjusted its iPhone launch timetable, introduced new hardware categories and continued developing an upgraded Siri service. Price increases across some devices have helped offset higher component costs, but the extent to which customers will absorb further increases remains a commercial consideration.

The results underline the difference between Apple’s current sales strength and the pressures shaping its next phase of growth. The company enters the holiday quarter with a strong iPhone cycle and record services revenue, but investors will be watching whether it can sustain demand while protecting margins.

For Ternus, the immediate test is to convert the product pipeline into durable growth without allowing component inflation or slower services expansion to weaken earnings quality.