Apple’s Q4: iPhone Saves the Day, But a Massive Tax Bill Takes a Bite

Apple wrapped up its fiscal fourth quarter with a 6% revenue boost, reaching $94.9 billion and surpassing Wall Street's forecast of $94.6 billion. This growth was fueled by a solid rebound in iPhone sales, which climbed 5.5% to $46.2 billion, reversing two quarters of declining demand.

With the iPhone 16 launching just a week before the end of the quarter, Apple offered only a brief look at the model's performance—but early numbers are promising, with nearly half of Apple’s total revenue still anchored by iPhone sales, proving its resilience in an increasingly competitive market.

Despite the high notes, Apple’s profit took a hit this quarter due to a one-time European tax charge related to a reversal of a state aid decision. This charge brought net income down 35% to $14.7 billion, or 97 cents per share, compared to $22.96 billion, or $1.47 per share, in the same period last year. However, adjusted for the tax charge, Apple’s earnings per share would’ve been $1.64, comfortably surpassing analyst expectations of $1.60.

The wearables, home, and accessories segment—a category that includes the Apple Watch, AirPods, and the high-profile Vision Pro headset—saw a 3% dip to $9 billion. While modest, it’s the only unit that didn’t grow this quarter, signaling that Apple’s newer product categories are yet to match the consistent performance of its flagship iPhone.