New CEO John Ternus delivers an Apple earnings beat — but soft China and iPad sales

Apple's first earnings report under new CEO John Ternus, who succeeded Tim Cook on September 1, beat Wall Street expectations on both the top and bottom lines, with fiscal fourth-quarter revenue of $114.5 billion versus estimates of $113.46 billion and EPS of $2.10 against forecasts of $2. iPhone revenue of $57.58 billion topped estimates of $56.48 billion, and gross margin came in at 47.9%, but China revenue of $17.54 billion missed the $18.75 billion consensus and iPad sales of $6.23 billion fell short of the $6.83 billion estimate, while Services was roughly in line at $31.57 billion. The stock traded roughly flat after hours. The quarter included about two weeks of iPhone 18 Pro sales, though the new iPhone Duo foldable launched in October will not appear in results until next quarter, and Apple has yet to announce non-Pro iPhone variants expected early next year. Ternus faces rising memory costs and supply chain constraints that have pushed hardware prices higher, and investors will watch his first earnings call at 5 p.m. ET for commentary on early iPhone Duo order pacing and margin pressure.