Apple stock dips despite strong iPhone sales and revenue beat
Despite record iPhone sales, Apple's stock dips on cautious outlook and supply chain concerns.
(Photo via MarketWatch)
Apple reported fiscal fourth-quarter earnings on Nov. 2, 2026, surpassing Wall Street expectations with revenue of $114.5 billion and earnings per share of $2.10. Despite these results, the company's stock price fell between 2.75% and 3% in after-hours trading following a cautious margin forecast for the upcoming holiday quarter.
iPhone revenue reached $57.58 billion, representing a 17% increase compared to the same period last year. However, growth in the company's services division decelerated to 9.8%, down from 12.1% in the previous quarter, even as the segment reached an all-time high of $31.57 billion in revenue.
During his first earnings call as CEO, John Ternus addressed the challenges posed by a global supply-chain constraint for high-bandwidth memory chips. Apple expects gross margins to decline to 45%–46% for the December quarter, compared to 47.9% in the September quarter, as the company competes with AI data centers for limited memory supply.
Ternus described the current market conditions for memory components as unprecedented. To mitigate rising costs, Apple has already implemented price increases across its Mac, iPad, and iPhone product lines. The company continues to navigate these supply pressures as it moves into the holiday season.