Apple’s Services business has quietly become the most important line in the company’s earnings. In the September quarter, Services revenue reached $31.57 billion — a new all-time high and up 9.8% year over year. Apple’s headline rounded that to “up 10%”; either way, it is the segment’s strongest quarter on record.
A record quarter under a new CEO
The results cover Apple’s fiscal fourth quarter ended Sept. 26, 2026, and are the first reported under new CEO John Ternus, who took over Sept. 1. iPhone revenue climbed 17% to $57.58 billion, a September-quarter record. Total company revenue rose 12% to $114.5 billion, and diluted earnings per share came in at $2.10, up 14%.
Gross margin was 47.9%, helped by about one percentage point from tariff refunds after the Supreme Court invalidated Trump-era tariffs. Ternus called the result “capping off our best fiscal year ever.”
What sits inside Services
Apple’s Services segment includes the App Store, Apple TV, Apple Music, Apple Pay, AppleCare, iCloud and advertising. That bundle is the key caveat for media and streaming professionals: Apple does not disclose Apple TV+ subscribers or advertising revenue separately. A record Services number is a signal about how well Apple monetizes its installed base, not a direct read on streaming scale.
- Services: $31.57 billion, up 9.8% — all-time high.
- iPhone: $57.58 billion, up 17% — September-quarter record.
- Total revenue: $114.5 billion, up 12%.
Why it matters for media planners
For entertainment marketers and streaming analysts, Services is the recurring, increasingly ad-supported layer that smooths out hardware cycles. Apple’s advertising business sits inside this number, but its size is not disclosed. As Services compounds near double digits, Apple has more incentive to expand subscription and ad inventory — especially into the holiday quarter.
The product slate Ternus cited — foldable iPhone Duo, iPhone 18 Pro and Pro Max, new home hardware, Touch to Mac and Siri AI — gives Apple more surfaces to attach services and advertising. More devices mean more potential inventory, but still limited transparency. That makes direct comparisons with pure streaming players difficult.
How to read the number
Do not treat the Services record as proof that Apple TV+ has suddenly scaled. It is a bundled line. If you plan against Apple inventory or subscription bundles, watch whether the company offers any additional color on Services components in the next earnings call.
Source: Variety
