Apple Services Revenue Hits Record $31.6 Billion, iPhone Sales Surge 17% in Q4 Under CEO John Ternus

Apple's services segment reached a new all-time high of $31.6 billion in the fiscal 2026 fourth quarter, a 10% increase year over year, according to the company's latest earnings report. This marks the first quarterly results under new CEO John Ternus, who took the helm from Tim Cook. The quarter ended Sept. 26, 2026, and saw iPhone revenue jump 17% to $57.58 billion, indicating robust demand for the flagship product line. The record services performance underscores Apple's strategic shift toward recurring revenue streams such as the App Store, Apple Music, iCloud, and Apple TV+. As hardware sales mature, services have become a critical growth engine, now generating over $31 billion in a single quarter. Investors closely watch this metric because it reflects customer loyalty and ecosystem stickiness. Under Ternus's leadership, Apple appears to be maintaining its momentum across both hardware and software. The 17% iPhone growth suggests successful product launches and continued consumer appetite despite broader economic uncertainties. The combination of strong device sales and a thriving services business positions Apple for sustained profitability. With services hitting new records and iPhone sales accelerating, Apple's first quarter under John Ternus signals a confident start to a new era. The tech giant's ability to grow both units and subscriptions will be key to its future valuation.