AAPL · 10-K · 2026A · Full report

Gross Margin Drivers

Apple Inc. · 2026-11-03 · Importance 48 · Surprise 40

Fiscal 2026 total gross margin increased to $233.602 billion from $195.201 billion, and gross margin percentage rose to 48.8% from 46.9%. Products gross margin increased to $139.659 billion from $112.887 billion, with product gross margin percentage rising to 39.3% from 36.8%, primarily due to product mix and tariff refunds, partly offset by higher costs including memory. Services gross margin increased to $93.943 billion from $82.314 billion, while Services gross margin percentage rose to 76.2% from 75.4% due primarily to a different mix of services, partly offset by higher costs.

Key facts

• Products gross margin and gross margin percentage increased in 2026 compared with 2025 primarily due to product mix and tariff refunds, partly offset by higher costs, including memory. source
• Services gross margin increased in 2026 compared with 2025 primarily due to higher Services net sales and a different mix of services, partly offset by higher costs. source
• Services gross margin percentage increased in 2026 compared with 2025 primarily due to a different mix of services, partly offset by higher costs. source
• Apple expects gross margins generally to be subject to volatility and downward pressure. source