Apple’s Q4 Earnings Shows Revenue Beat, Tax Charge Weighs on Net Income

Apple surpassed Wall Street expectations in its fiscal Q4, reporting adjusted earnings per share (EPS) of $1.64 and revenue of $94.93 billion, driven by solid iPhone sales. Despite the strong results, a one-time $10.2 billion tax charge, stemming from an EU tax ruling, led to a drop in net income to $14.73 billion from $22.96 billion the previous year.

Here’s how Apple performed in its key segments, compared to analyst forecasts:

• iPhone revenue: $46.22 billion (beat expectations)
• Mac revenue: $7.74 billion (slightly below expectations)
• iPad revenue: $6.95 billion (slightly below expectations but up 8% YoY)
• Other Products: $9.04 billion (missed expectations, down 3% YoY)
• Services: $24.97 billion (up 12% YoY but missed expectations)

The iPhone 16, launched in late September, showed early momentum, boosting iPhone sales by 6%. CEO Tim Cook highlighted the positive reception of Apple Intelligence, the company’s new AI system integrated into iOS 18.1, with rapid adoption rates that are twice as fast as last year’s version.

Apple’s Services segment, including iCloud and AppleCare, grew but fell short of estimates at nearly $25 billion. Meanwhile, its wearables division underperformed, with AirPods and Apple Watch sales failing to meet forecasts.

Geographically, Apple saw a slight decline in Greater China revenue to $15.03 billion, amid growing competition from local players like Huawei. Despite these challenges, Apple’s total revenue rose 2% for the fiscal year to $391.04 billion, and the company maintained its robust cash position at $156.65 billion.

Looking ahead, Apple forecasts modest growth in Q1, with Services expected to continue expanding at about 12.9% annually.