Apple has closed fiscal 2026 with another record-breaking quarter, and its Services business continues to be one of the company’s biggest growth engines. The company reported an all-time high of $31.6 billion in Services revenue for the fourth quarter, up 10% year over year, as subscriptions, digital content, cloud services, payments, and advertising continued to expand across its ecosystem.

Announced on November 2, 2026, Apple’s fourth-quarter results also set September-quarter records for overall revenue, iPhone revenue, and earnings per share. The company generated $114.5 billion in quarterly revenue, representing 12% growth compared with the same period last year.

The results mark another important milestone for Apple’s services strategy. While hardware remains central to its business, the growing contribution from Services demonstrates how the company continues to generate revenue from customers long after they purchase an iPhone, Mac, iPad, or another Apple device.

Services revenue reaches $31.6 billion

According to Apple’s financial results, Services generated $31.573 billion in revenue during the September quarter, compared with $28.750 billion in the year-ago quarter. That represents approximately 10% year-over-year growth and establishes a new all-time quarterly record for the business.

Apple reported strong performance across several services categories. Video, cloud services, payment services, and advertising each reached new all-time revenue records, while music achieved a September-quarter revenue record.

The company’s expanding customer base is also contributing to this performance. Apple reported that both transacting accounts and paid accounts reached new all-time highs during the quarter. Paid subscriptions surpassed 1.5 billion, growing at a double-digit rate year over year.

That figure reflects the scale of Apple’s subscription ecosystem, which includes services such as Apple Music, Apple TV, Apple Arcade, iCloud+, Apple News+, and Apple Fitness+. The broader Services category also includes advertising, payment services, warranties, and other offerings.

Services remains particularly valuable to Apple because it generates revenue from an established customer base without relying exclusively on new hardware sales. As customers continue using Apple devices, they have more opportunities to subscribe to services, purchase digital content, and use Apple’s payment and cloud offerings.

Apple’s full-year Services business also sets a record

The quarterly milestone comes alongside another strong fiscal year for Apple’s Services division.

For fiscal 2026, Services generated $123.301 billion in revenue, compared with $109.158 billion in fiscal 2025. That represents approximately 13% annual growth.

The division’s performance is especially significant when compared with Apple’s overall business. The company generated $478.8 billion in total revenue for fiscal 2026, up 15% from $416.2 billion a year earlier.

Services accounted for approximately 25.8% of Apple’s annual revenue, making it a substantial part of the company’s overall financial performance.

Apple also reported that Services gross margin reached 76% during the September quarter, increasing by 40 basis points sequentially. This highlights the division’s importance beyond revenue growth, as Services continues to contribute a higher-margin revenue stream to the business.

During the earnings discussion, Apple CFO Kevan Parekh highlighted the division’s performance across geographic markets. Services recorded all-time revenue highs in the Americas and Europe, along with a September-quarter record in the rest of Asia Pacific. Apple also reported records in several emerging markets, including India and Latin America.

iPhone remains Apple’s biggest revenue contributor

Despite the strong performance from Services, Apple’s hardware business continues to account for the majority of its quarterly revenue.

iPhone generated $57.6 billion in revenue during the September quarter, up 17% year over year, setting a new September-quarter record. Apple attributed the performance to strong demand across developed and emerging markets, despite supply constraints and foreign-exchange headwinds.

Mac revenue also increased significantly, reaching $10.8 billion, up 24% from the year-ago quarter. Apple credited demand for the MacBook Neo and MacBook Pro models for the growth.

However, not every hardware category experienced growth. iPad revenue declined 10% to $6.2 billion, while Wearables, Home and Accessories revenue fell 8% to $8.3 billion.

Combined, Apple’s Products business generated $82.9 billion in quarterly revenue, compared with $31.6 billion from Services. The figures illustrate how hardware sales continue to bring customers into Apple’s ecosystem, while Services provides another recurring source of revenue.

Apple reports its best fiscal year yet

Apple’s September-quarter performance capped off its strongest fiscal year to date. Total revenue reached $478.8 billion for fiscal 2026, up approximately 15% from the previous year’s $416.2 billion.

For the fourth quarter, the company reported a gross margin of 47.9%, net income of $30.7 billion, and diluted earnings per share of $2.10, representing 14% year-over-year growth.

Apple also generated $28.1 billion in operating cash flow during the quarter and returned approximately $28 billion to shareholders through dividends and share repurchases.

The company declared a quarterly cash dividend of $0.27 per share, payable November 16, 2026, to shareholders of record as of November 12.

Another important milestone was Apple’s active installed base, which reached a new all-time high across all major product categories and geographic segments. During the earnings discussion, CEO John Ternus also highlighted the company’s expanding ecosystem and its plans to carry its latest hardware and software lineup into the holiday shopping season.

For Services, the combination of a growing installed base, more than 1.5 billion paid subscriptions, and continued growth across video, cloud, payments, and advertising provides a strong foundation for further expansion.

Apple’s latest results show that Services is no longer simply an additional business supporting its hardware lineup. It has become a major part of the company’s financial performance, delivering more than $123 billion in annual revenue and another quarterly record as Apple enters its next fiscal year.