Apple forecasts margin drop in holiday quarter as rising memory costs bite
Apple said memory-chip costs and Siri AI spending will pressure margins, even as fiscal fourth-quarter revenue topped estimates at $114.48 billion.
- On Monday, Apple reported record September-quarter revenue of $114.5 billion, up 12% year-over-year and surpassing Wall Street estimates of $113.46 billion.
- Apple CEO John Ternus, who took over from Tim Cook on September 1, oversaw the quarter while launching the iPhone Duo and first touchscreen MacBook Pro.
- Net profit reached $30.7 billion, with diluted EPS of $2.10 per share. Operating cash flow totaled $28 billion, which the company returned entirely to shareholders.
- Tariff refunds provided a one-time boost, with Apple CFO Kevan Parekh noting they contributed about 1 percentage point to gross margin and $0.05 to diluted EPS.
- Investors are monitoring December-quarter guidance as the company enters the holiday season with the iPhone 18 Pro, Apple HomeView, and touchscreen MacBook Pro, while non-Pro models arrive early next year.
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The company beat analysts' forecasts with revenue of $114.5 billion, but concerns about production costs and high investor expectations are putting pressure on its stock - It surpassed Nvidia and became the world's most valuable listed company again
Although Apple's quarterly figures are set at record levels, the Group's shares are falling according to the presentation of the third quarter's balance sheet. The background is the maue outlook for the current quarter.
Apple has closed fiscal year 2026 with sales of $478,834 million, 15% more than the previous year and the highest figure in its history. They are also the first results with John Ternus at the head of the company. Net profit has risen by 18%, up to 132,175 million, but the ... Continue reading "Apple beats your sales record, but increasingly depends on iPhone"
Apple Q4 results beat estimates as iPhone 18 Pro demand, price hikes offset rising chip costs
Apple reported better-than-expected Q4 revenue of $114.48 billion and earnings of $2.10 per share, driven by strong iPhone 18 Pro demand and Mac sales. Higher product prices helped offset rising memory-chip costs. The company is also expanding its AI offerings, while addressing supply constraints affecting its first foldable iPhone.
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