Apple Sales Rise 12%; Tariff Refunds Pad EPS: Rapid Earnings Reaction

Apple reported record Q4 fiscal 2026 revenue of $114.5 billion, up 12% year-over-year, with diluted EPS of $2.10, up 14%. However, tariff refunds contributed $0.05 to EPS and 1 percentage point to gross margin, masking slower underlying earnings growth. The company faces a margin test in the holiday quarter with its new iPhone Duo, home hardware, and rebuilt Siri, as new product launches typically have higher early production costs.