Apple (AAPL) Q4 Earnings and Revenues Beat Estimates

Apple (AAPL) reported Q3 2026 revenue of $114.5B, up 11.7% YoY, and EPS of $2.10, 5.5% above estimates. Growth driven by iPhone Duo, Mac sales, and AI features. Management cited memory cost pressures and supply constraints as challenges, expecting gross margins of 45-46% next quarter.

US stock futures were mixed on Tuesday, with AAPL down 4.5% premarket due to margin concerns despite strong Q4 revenue. ORCL rose 0.4% after a $20B share sale plan. PLTR fell 5% despite beating earnings. NVDA gained 1.3%, MRVL up 2% on acquisition news, AMD up 2.4% ahead of earnings. AEHR surged 15.5% on record revenue and strong outlook. Midterm elections and earnings calendar also in focus.

Apple (AAPL) shares fell 4.7% in pre-market trading after Q4 2026 earnings beat expectations, but guidance for lower margins and weaker China revenue disappointed investors. Gross margins are expected to narrow to 45%-46% in Q1 2027 due to rising memory-chip costs. Services revenue growth slowed to 9.8% YoY, and Greater China revenue missed estimates by over $1 billion. New CEO John Ternus addressed concerns about AI-related spending and a one-time EPS boost.

German 10-year Bund yield fell to 3.29%, its lowest since August, as tech stock declines and U.S. election caution drove investors to sovereign debt. Apple's profit margin warning contributed to the shift. U.S. tech giants like Alphabet and Oracle are issuing bonds in Europe to fund AI infrastructure, potentially increasing supply and affecting borrowing costs.

Apple accelerated the launch of its foldable iPhone Duo to October 23 from the planned November date, leading to stock shortages and delivery delays. According to Bloomberg's Mark Gurman, the early release resulted in insufficient inventory, with online orders facing January 2027 delivery estimates. The rushed timeline may also be linked to reported hardware issues, complicating the launch of the $1,999 device.

Apple (AAPL) and Palantir (PLTR) shares declined in premarket trading Tuesday after reporting earnings. Apple's revenue exceeded expectations, but iPad sales and margin forecasts missed estimates. Palantir beat estimates, with U.S. commercial revenue surpassing government revenue for the first time.