.png)
1 hour ago
1
Apple Share Price: Shares of iPhone maker Apple fell around 3 per cent in after-hours trading despite the company reporting better-than-expected Q4 results. The stock came under pressure after the management flagged a weaker outlook during the post-results conference call.
The Q4 results mark the first quarterly earnings announcement under Apple's newly appointed CEO, John Ternus, following his appointment to the top position.
As of 5:53 am IST, Apple's stock was trading 2.8 per cent, or USD 9.4, lower at USD 328.75 in after-hours trading. During the regular session, the stock settled 1.83 per cent lower at USD 338.32. It had touched an intraday low of USD 335.82, marking a decline of 2.6 per cent from its previous closing price of USD 344.63.
Why is Apple stock down today?
Apple shares slipped after the management projected a gross margin of 45 per cent to 46 per cent for the quarter ending in December, down from 47.9 per cent in the fourth quarter. It also forecast services revenue growth of 8 per cent to 9 per cent, below analysts' expectations of 10.7 per cent, Reuters reported.
Additionally, approximately USD 0.05 per share of the EPS beat and roughly one percentage point of the 47.9 per cent gross margin were attributable to one-time tariff refunds, which are not expected to recur.
Rising memory chip costs, driven by surging demand from AI data centres, added further pressure to the hardware margin outlook. Meanwhile, revenue from both the Wearables and iPad segments declined year-on-year.
Apple Q4 Results
Apple reported a strong set of fourth-quarter FY2026 earnings, with both revenue and profitability surpassing Wall Street expectations. The iPhone maker posted quarterly revenue of USD 114.48 billion, compared with analyst estimates of USD 113.39 billion, marking a 12 per cent year-on-year increase.
The company's diluted earnings per share (EPS) came in at USD 2.10, ahead of the consensus estimate of USD 1.99 and up 14 per cent from the same period last year. Meanwhile, net income rose 12 per cent year-on-year to USD 30.71 billion, reflecting continued strength across Apple's product and services businesses.
Profitability metrics also remained robust. Gross margin expanded to 47.9 per cent, comfortably above market expectations of 47.5 per cent, highlighting Apple's ability to maintain pricing power and operational efficiency despite a challenging global consumer environment.
At the operating level, operating income reached USD 35.63 billion, surpassing estimates of USD 34.52 billion and representing a 10 per cent increase from a year earlier.
English (US) ·