Apple earnings beat expectations on Monday, November 2, 2026, yet the stock fell about 4% on Tuesday morning. The reason was not the quarter itself, which set September records, but Apple’s warning that soaring memory chip prices will squeeze its profit margin over the holidays, Reuters reported.
Key facts (as of November 2026)
- Apple’s fiscal fourth-quarter revenue rose 12% from a year earlier to $114.5 billion, with diluted earnings per share of $2.10 (Apple, November 2, 2026).
- Apple expects its December-quarter gross margin to land between 45% and 46%, down from 47.9% in the September quarter, citing memory costs (MacRumors earnings-call notes).
- Shares fell about 4% in early trading on November 3, 2026, according to Reuters via BNN Bloomberg.
What were Apple earnings for the September quarter?
Apple posted record September-quarter revenue, iPhone revenue and earnings per share for its fiscal fourth quarter, which ended on September 26. Revenue reached $114.5 billion. Gross margin, the share of sales left after production costs, was 47.9%. That figure included a boost of about one percentage point from tariff refunds, Apple said in its press release.
For the full fiscal year, revenue hit an all-time record of $479 billion. It was also the first results call for John Ternus as chief executive, with CFO Kevan Parekh alongside him.
| Segment | Sept. quarter 2026 | Year earlier |
|---|---|---|
| iPhone | $57.6 billion (up 17%) | about $49.2 billion |
| Services | $31.6 billion (record) | $28.8 billion |
| Mac | $10.8 billion | $8.7 billion |
| Wearables, Home and Accessories | $8.3 billion (down 8%) | about $9.0 billion |
| iPad | $6.2 billion | $7.0 billion |
Sources: Apple press release and MacRumors earnings-call notes, November 2, 2026. Year-earlier iPhone and wearables figures are calculated by NewsLive from the reported growth rates.
Why did Apple stock fall after the Apple earnings beat?
Investors focused on the outlook. Apple expects gross margin of 45% to 46% in the December quarter, compared with 47.9% just reported. Higher memory prices and the cost of running its new Siri AI features are the main pressures, according to MacRumors’ notes from the call.
Ternus called the memory market “unprecedented” and said Apple expects prices to keep rising beyond the December quarter, Reuters reported. Memory chips are in short supply because AI data centers are buying so much of the world’s output.
Expectations were also high going in. Apple shares had gained more than a fifth this year before the report, and the stock traded at nearly 35 times expected earnings, according to Reuters. So a softer margin guide carried more weight than it might have otherwise.
What time did the Apple earnings call start, in your time zone?
Apple released results after the US market close on November 2 and held its call at 2 p.m. PT. US clocks moved back on November 1, while the UK and EU changed on October 25. As a result, the gap between New York and London is back to five hours.
| Event | ET | London | Paris / Berlin |
|---|---|---|---|
| Apple earnings call (Nov 2) | 5:00 p.m. | 10:00 p.m. | 11:00 p.m. |
| US market open (Nov 3) | 9:30 a.m. | 2:30 p.m. | 3:30 p.m. |
Before the report, options pricing implied a move of about 4.25% in either direction, investingLive noted. In other words, Tuesday’s early drop sat close to what traders had priced in.
What did Apple say about the holiday quarter?
The revenue outlook was upbeat. Apple expects December-quarter revenue to grow 7% to 10% from a year earlier, which would make it the company’s biggest quarter ever, MacRumors reported. Services revenue is expected to grow 8% to 9%.
Supply is the catch. Apple expects Mac and iPad to stay constrained, mainly because of memory, and Ternus said the company cannot yet meet demand for the foldable iPhone Duo. Meanwhile, Apple’s purchase obligations with suppliers climbed to $89.7 billion, an increase of $33 billion, as it locked in parts, Reuters reported from a filing.
Price rises are part of the response. Apple raised some prices in June and September, which offset part of the cost pressure, according to MacRumors’ call notes. Dan Coatsworth of AJ Bell told Reuters the comments imply Apple products will become more expensive.
What does Apple’s report mean for other tech companies?
The memory squeeze reaches well beyond Apple. Reuters noted that phones, PCs and other electronics have faced price hikes this year as AI demand absorbs chip supply, and that Intel gave a weak forecast last week. The slide also pulled down the broader S&P 500 and Nasdaq indexes on Tuesday.
There was good news inside the numbers, too. Revenue in Greater China rose 21% to a quarterly record, and the active device base passed 2.5 billion, according to MacRumors. Apple also declared a dividend of $0.27 per share, payable on November 16 to shareholders of record on November 12.
None of this is investment advice. Apple’s press release and SEC filings remain the primary record of the results.
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Frequently asked questions
When were Apple earnings released?
Apple released its fiscal fourth-quarter 2026 results on November 2, 2026, after the US market close, with a call at 2 p.m. PT (10 p.m. London).
Did Apple beat expectations?
Yes. Revenue of $114.5 billion and earnings per share of $2.10 both came in above Wall Street estimates, according to investingLive. Reuters also reported that sales beat estimates.
Why are Apple’s margins expected to fall?
Apple pointed to higher memory chip costs and the cost of its Siri AI rollout, and expects a gross margin between 45% and 46% in the December quarter.
