Apple sold $478.8 billion of products and services in fiscal 2026, which ended on 26 September 2026. The iPhone brought in 53.1% of that. Services, which includes advertising, cloud storage, the App Store, and payments, brought in 25.8% but produced 40.2% of the gross profit.
Apple announced its fiscal fourth-quarter results on 2 November 2026 and filed its annual report on 3 November 2026. We wrote this guide on 4 November 2026. It covers what Apple sells, who buys it, how it earns money, and what changed in the latest results.
What does Apple do? Apple designs and sells iPhones, Macs, iPads, wearables, and accessories. It also sells services such as the App Store, advertising, cloud storage, AppleCare, and payments.
Fiscal 2026 net sales were $478.8 billion, up 15.1%. iPhone was 53.1% and Services was 25.8%.
Services earned a 76.2% gross margin against 39.3% for products.
Fiscal 2026 free cash flow was $136.1 billion, 28.4% of net sales.
How we built this guide
Company figures come from Apple's Form 10-K for fiscal 2026, filed on 3 November 2026. They also come from the results release that Apple furnished to the US Securities and Exchange Commission (SEC) on 2 November 2026. A Form 10-K is the annual report. Apple's fiscal year ends on the last Saturday of September.
We use US accounting (GAAP) figures only. Net sales means revenue. Gross profit is net sales less the direct cost of what was sold. Gross margin is gross profit as a share of net sales.
Operating income is gross profit less research and development and selling, general and administrative costs. Operating margin is operating income as a share of net sales.
Free cash flow is cash from operations minus payments for property, plant and equipment.
Prices run from the close on 3 November 2021 to the close on 3 November 2026, which is 1,255 trading days. Returns count dividends as reinvested.
What does Apple sell?
Net sales by category | Fiscal 2026 | Change on fiscal 2025 | Share of fiscal 2026 | Fourth quarter of fiscal 2026 | Change on fourth quarter of fiscal 2025 |
|---|---|---|---|---|---|
iPhone | $254.1 billion | +21.2% | 53.1% | $57.6 billion | +17.5% |
Services | $123.3 billion | +13.0% | 25.8% | $31.6 billion | +9.8% |
Mac | $37.9 billion | +12.5% | 7.9% | $10.8 billion | +23.7% |
Wearables, Home and Accessories | $35.6 billion | −0.3% | 7.4% | $8.3 billion | −7.9% |
iPad | $27.9 billion | −0.3% | 5.8% | $6.2 billion | −10.4% |
Total net sales | $478.8 billion | +15.1% | 100.0% | $114.5 billion | +11.7% |
Fiscal 2026 ended 26 September 2026. The fourth quarter ran from 28 June to 26 September 2026. Source: Apple Form 10-K for fiscal 2026 and Apple results release of 2 November 2026 (SEC); YX Insights
Apple reports five categories. iPhone is its smartphone line. The 10-K lists the iPhone Duo, 18 Pro, Air, 17, 17e, and 16. Mac covers laptops and desktops. iPad is its tablet line.
Wearables, Home and Accessories covers Apple Watch, AirPods, Apple Vision Pro, its media streaming device, HomePod, and accessories. Services covers advertising, AppleCare, cloud services, payments such as Apple Pay, and digital content such as the App Store.
Source: Apple Form 10-K (SEC), fiscal 2026; YX Insights
iPhone sold $254.1 billion in fiscal 2026, up 21.2%. Services sold $123.3 billion, up 13.0%. Mac grew 12.5%, while iPad and Wearables, Home and Accessories were each down 0.3%.
Who buys from Apple?
The 10-K names consumers, small and mid-sized businesses, education, enterprise, and government as its customers. Apple sells through its retail and online stores and a direct sales force. About 60% of fiscal 2026 net sales went through indirect channels such as carriers and resellers, according to the 10-K.
Apple reports five geographic segments. Europe includes India, the Middle East and Africa. Greater China covers mainland China, Hong Kong, and Taiwan.
Source: Apple Form 10-K (SEC), fiscal 2026; YX Insights
The Americas were 41.4% of net sales and Europe 26.6%. Greater China was 17.2% and grew fastest of the five segments, up 28.0% to $82.4 billion.
How does Apple make money?
Apple earns money in two ways. It sells devices. It also sells services around them. The 10-K says Services net sales rose in fiscal 2026 mainly because of advertising and cloud services.
The two earn different margins. Products had a gross margin of 39.3% in fiscal 2026, which is $139.7 billion of gross profit on $355.5 billion of sales. Services had 76.2%, which is $93.9 billion on $123.3 billion.
Services was 25.8% of net sales and 40.2% of gross profit. Our platform business model guide explains how a store that connects developers and customers earns money.
What are Apple's key numbers?
Fiscal 2026 net sales were $478.8 billion, up 15.1% from $416.2 billion. Gross margin was 48.8%, up from 46.9%. Operating income was $158.1 billion, a 33.0% operating margin against 32.0% a year earlier.
Source: Apple Form 10-K filings (SEC), fiscal 2022 to 2026; YX Insights
Free cash flow was $136.1 billion in fiscal 2026, up 37.8% from $98.8 billion. That is 28.4% of net sales. Operating cash flow was $145.1 billion, less $9.0 billion of payments for property, plant and equipment. Our free cash flow explainer covers the measure.
Revenue grew 5.0% a year from fiscal 2022 to fiscal 2026. Free cash flow fell in 2 of the 4 years after fiscal 2022, fiscal 2023 and fiscal 2025.
Apple returned cash through $86.4 billion of share repurchases and $15.7 billion of dividends in fiscal 2026, together 75.1% of free cash flow. Research and development cost $45.8 billion, up 32.5%. The 10-K attributes the rise mainly to infrastructure costs, including artificial intelligence, plus headcount.
What happened in the latest results?
This section comes from Apple's own announcement and filing. Apple said fourth-quarter net sales, for the quarter ended 26 September 2026, were $114.5 billion, up 11.7%. Products sold $82.9 billion, up 12.5%. Services sold $31.6 billion, up 9.8%.
By category in the quarter, iPhone rose 17.5% and Mac rose 23.7%. iPad fell 10.4% and Wearables, Home and Accessories fell 7.9%. Greater China net sales were $17.5 billion, up 21.0%.
Gross margin was 47.9%, against 47.2% a year earlier. Apple said tariff refunds added about 1 percentage point to it and $0.05 to diluted earnings per share, which were $2.10 against $1.85. Operating margin was 31.1%, against 31.6%.
Operating cash flow in the quarter was $28.1 billion and free cash flow $25.9 billion, against $26.5 billion a year earlier. We derive the quarter by subtracting the nine-month figures in the June 2026 10-Q from the full-year figures in the 10-K.
Apple's board declared a dividend of $0.27 a share, payable on 16 November 2026.
What drives Apple's results?
The iPhone is the largest source of net sales, at 53.1%. The 10-K attributes the 21.2% rise in iPhone sales in fiscal 2026 to higher sales of Pro models.
Services earned a 76.2% gross margin in fiscal 2026 against 39.3% for products, so the mix of the two moves gross margin.
On costs, the 10-K says Apple faces supply constraints and rising costs for advanced semiconductors, memory, and storage. It expects these to intensify for memory and storage. It also says gross margins will be subject to volatility and downward pressure. Apple recognises tariff refunds as a reduction of products cost of sales.
On regulation, the 10-K describes the European Union's Digital Markets Act and a US Department of Justice antitrust lawsuit. It also describes a court injunction on App Store fees for purchases made through external links.
How has Apple's stock performed over five years?
Source: YX Insights price data (AAPL, SPY)
A $10,000 stake in Apple at the close on 3 November 2021 was worth $22,460 on 3 November 2026, which is 17.6% a year. The same stake in SPY (the S&P 500 ETF) was worth $17,358, or 11.7% a year.
Apple's deepest fall in the window was 33.4%, from 26 December 2024 to 8 April 2025. It regained the old high on 20 October 2025. SPY's deepest fall was 24.5%, from 3 January 2022 to 12 October 2022. It regained its old high on 13 December 2023.
Our Apple Discounted Cash Flow (DCF) post shows how valuation depends on its inputs. $10,000 in Apple follows a ten-year stake. Apple is one of the Magnificent 7. Stock market sectors shows where it sits in the S&P 500.
What does this guide leave out?
The guide covers one fiscal year and one quarter. The five-year window starts on 3 November 2021. A different start date gives different returns. It makes no forecast.
Multi-model Signals covers Apple (AAPL).
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Common questions about Apple
What are Apple's main products and services?
Apple designs smartphones, computers, tablets, wearables, and accessories. It also sells services such as the App Store, advertising, cloud storage, AppleCare, and payments. Its fiscal 2026 net sales were $478.8 billion, of which iPhone was 53.1% and Services 25.8%. The 10-K reports net sales in five categories and five geographic segments.
How does Apple earn its profit?
Apple makes money from selling devices and from services. Products had a 39.3% gross margin in fiscal 2026. Services had 76.2%. Services were 25.8% of net sales but 40.2% of gross profit, so the mix of the two shapes the margin.
What is Apple's biggest product?
The iPhone is Apple's biggest product. It brought in $254.1 billion in fiscal 2026, which was 53.1% of net sales and 21.2% more than in fiscal 2025. Services was second with $123.3 billion. Mac was third with $37.9 billion, ahead of Wearables, Home and Accessories and iPad.
Where does Apple sell the most?
The Americas are Apple's largest region. They brought in $198.1 billion in fiscal 2026, or 41.4% of net sales. Europe was second at $127.6 billion. Greater China was third at $82.4 billion and grew fastest, by 28.0%. Apple reports Europe to include India, the Middle East and Africa.
DISCLAIMER: This article is intended for educational purposes only. Any information or analysis in this note does not constitute an offer to sell or a solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice, nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.
