Apple shares tumble after Q4 earnings beat but margin outlook disappoints
Apple reported fiscal Q4 2026 revenue of about $114.5 billion and EPS of $2.10, both beating estimates. The company warned that gross margins will fall to a range of 45%‑46% in the December quarter, down from 47.9% in the September quarter, as memory‑chip costs rise. The weaker margin guidance and slower services growth sent the stock down 4‑5% in pre‑market trading.
Why it matters
The lower margin outlook reduces near‑term profit expectations for the critical holiday quarter, pressuring the stock price. Investors will also watch operating‑expense growth of 11%‑13% year‑over‑year, driven by AI‑related R&D, as it may further compress earnings.
Key facts
- 1Apple posted Q4 revenue of $114.48 billion, beating the $113.38 billion consensus. investing.com
- 2EPS for the quarter was $2.10, above the $1.99 estimate. investing.com
- 3Gross margin for the September quarter was 47.9%. finance.yahoo.com
- 4Apple forecast gross margin of 45%‑46% for the December quarter. stocktwits.com
- 5Services revenue grew 9.8% year‑over‑year, the slowest in roughly three years. investing.com
- 6Greater China revenue was approximately $17.5 billion, missing estimates by more than $1 billion. tradingpedia.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.