After reporting a Q4 that rivals previous Apple holiday quarters, Apple has hinted that even with product constraints holiday quarter earnings will be its best ever with as much as 10% growth year-over-year.
Apple CFO Kevan Parekh shared some of Apple's forward-looking statements about what it might expect during Q1 2027. It has consistently been Apple's best quarter every year, and this one is expected to break records yet again.
During Apple's Q4 earnings call, Parekh shared that Apple is expecting revenue to grow between 7% and 10% year-over-year. He suggested that this "reflects our best view of constrained supply."
That means Apple's revenue could reach as high as $158.18 billion in Q1 2027.
Services revenue is also expected to grow between 8% and 9% year-over-year. Gross margin is likely to be between 45% and 46%.
The decrease in margins is being tied to higher memory costs and some costs related to the ramp of Siri AI.
He said that operating expenses are expected to be between $20.4 billion and $20.8 billion. The tax rate is expected to be around 17%.
These forward-looking statements also assume that global tariff rates, policies, and their application will remain in effect and not change through the quarter. Whatever the case may be, Apple is sure to break records even if its growth doesn't quite satisfy investors.
