Apple shares tumble after‑hours as Q4 2026 guidance disappoints
Apple reported fiscal Q4 2026 revenue of $114.48 billion and EPS of $2.10, beating estimates. The company guided Q1 2027 revenue growth of 7%‑10% and gross margins of 45%‑46%, both below analyst expectations. It also forecast Services revenue growth of only 8%‑9% and cited rising memory costs and unfavorable currency effects. The guidance triggered a 2.9%‑4.5% after‑hours sell‑off.
Why it matters
The lower margin outlook, from 47.9% to 45%‑46%, reduces near‑term profitability expectations. Slower Services growth, at 8%‑9% versus the 10.7% consensus, may curb revenue expansion. Both factors could pressure Apple’s valuation and influence investor positioning.
Key facts
- 1Q4 2026 revenue was $114.48 billion, above the $113.39 billion consensus. cnbctv18.com
- 2Q4 2026 earnings per share were $2.10, beating the $1.99 estimate. cnbctv18.com
- 3Apple guided Q1 2027 revenue growth of 7%‑10%. cnbctv18.com
- 4Guided gross margin for the next quarter is 45%‑46%, down from 47.9% in Q4. cnbctv18.com
- 5Services revenue growth is forecast at 8%‑9% for the coming quarter, below the 10.7% analysts expected. investing.com
- 6Memory costs are described as "unprecedented" and expected to stay high. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.