Key Highlights

  • Apple (NASDAQ:AAPL) reported September-quarter Revenue of USD 114.48 billion, up 12% and above the USD 113.39 billion expected, with EPS of USD 2.10 against a USD 1.99 consensus.
  • iPhone revenue was USD 57.58 billion against USD 56.54 billion expected, while services revenue of USD 31.57 billion was roughly in line.
  • Gross Margin was 47.9%, including about one point from Tariff refunds, but December-quarter guidance is 45% to 46% on rising memory costs.
  • Shares fell about 1.9% on November 3, 2026, after falling as much as 4% during the earnings call.

A Record Quarter on Almost Every Line

Apple (NASDAQ:AAPL) reported fiscal fourth-quarter results after the close on Monday, November 2, 2026, in the first earnings report under CEO John Ternus. Revenue grew 12% to USD 114.48 billion, the largest September quarter in the company's history. Diluted EPS of USD 2.10 beat the USD 1.99 consensus even after excluding a five-cent benefit from tariff refunds. iPhone revenue rose about 17.5% to USD 57.58 billion on Demand for the iPhone 18 Pro, and Mac revenue of USD 10.79 billion beat the USD 9.61 billion forecast. Gross margin of 47.9% topped the 47.5% forecast, which makes the lower outlook the key surprise of the report.

Where the Weakness Showed

Not every segment met forecasts. iPad revenue of USD 6.23 billion and wearables revenue of USD 8.30 billion missed, and China revenue of USD 17.54 billion fell short of the USD 18.58 billion expected. Services revenue of USD 31.57 billion matched consensus, but management guided services growth to 8% to 9% in the December quarter, below the 10.7% analysts expected. The bigger issue was gross margin guidance. Management expects 45% to 46%, and CFO Kevan Parekh said rising memory costs explained the entire underlying margin decline between the June and September quarters. Excluding tariff refunds, the September margin was closer to 46.9%.

Memory Costs and What to Watch

Ternus called memory pricing unprecedented, a sign that AI demand for high-bandwidth memory is tightening Supply for consumer devices. Apple (NASDAQ:AAPL) can respond with pricing, product mix or supplier terms, but each choice has trade-offs. The stock reaction showed how sensitive investors are to profitability: shares barely moved on the release, fell as much as 4% during the call and closed about 1.9% lower on November 3, with other published quotes ranging from 2% to 3.8% intraday. Watch holiday-quarter iPhone demand, China trends, services growth and any further commentary on component costs. Tariff refunds may not recur, so margin comparisons need care. Investors should also note that the guided margin is a range rather than a promise, and that component prices can change quickly. A strong holiday quarter could offset some of the pressure through volume, while weaker consumer demand would make the squeeze more visible. Management commentary on pricing will therefore matter as much as the headline numbers.

Where Things Stand

Apple fell because investors focused on a margin warning rather than a record quarter. Revenue, EPS and iPhone sales beat expectations, yet guidance of 45% to 46% gross margin and slower services growth raised doubts about earnings power. Apple (NASDAQ:AAPL) has the demand, but memory costs are a real headwind that may persist while AI uses up supply. The balance of evidence suggests a short-term earnings squeeze, not a collapse in the business. Holiday sales and memory pricing are the next tests, and the share price may stay volatile until they clarify.