BusinessTuesday, November 3, 20261 min read

Apple shares fall 4% despite revenue beat in first earnings under CEO John Ternus; what's next for the iPhone maker?

By Livemint Markets · Published by Everything Blog

In short

Total revenue rose 12% year-over-year to $114.5 billion, bolstered by strong Mac computer sales and the initial release of the iPhone 18 Pro lineup. However, gross margins benefited by roughly one percentage point from temporary tariff refunds, masking deeper underlying margin pressures. For the upcoming December quarter, leadership projected margins will decline to between 45% and 46% alongside cooling Services growth.

Key points

Anticipated gross margins of 45% to 46% for the upcoming quarter signaled near-term profi…: Anticipated gross margins of 45% to 46% for the upcoming quarter signaled near-term profitability compression to investors.
Growth in the high-margin Services segment is expected to decelerate to a range of 8% to…: Growth in the high-margin Services segment is expected to decelerate to a range of 8% to 9%.
Commercial success will increasingly depend on upcoming hardware releases, including the…: Commercial success will increasingly depend on upcoming hardware releases, including the foldable iPhone Duo and touchscreen MacBook Pro.

Sources checked by our analysis pipeline: 1

Shares of Apple Inc. slipped 4% in Tuesday’s trade on November 3, falling to $325 apiece, as the company’s fourth-quarter performance offered a mixed picture to investors. The results also marked the first quarterly report under its new Chief Executive Officer, John Ternus.

The iPhone maker reported revenue of $114.5 billion for the fiscal fourth quarter ended September 26, up 12% from the same period last year. The figure narrowly beat analysts’ estimates, with the average projection at $113.5 billion, according to data compiled by Bloomberg.

Ternus became CEO on September 1, putting him in charge for the final month of Apple’s fourth quarter. He has since overseen the unveiling of the foldable iPhone Duo, touchscreen MacBook Pro, and HomeView hub, although none of these products went on sale until the current quarter, which runs through December.

iPhone revenue, which accounted for the bulk of the company’s top line, reached $57.6 billion, up from $49.0 billion a year earlier. This indicates that the company is weathering a shift in its product launch schedule. Apple typically launches multiple new iPhone models…

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In short

Key Points

Anticipated gross margins of 45% to 46% for the upcoming quarter signaled near-term profi…: Anticipated gross margins of 45% to 46% for the upcoming quarter signaled near-term profitability compression to investors.
Growth in the high-margin Services segment is expected to decelerate to a range of 8% to…: Growth in the high-margin Services segment is expected to decelerate to a range of 8% to 9%.
Commercial success will increasingly depend on upcoming hardware releases, including the…: Commercial success will increasingly depend on upcoming hardware releases, including the foldable iPhone Duo and touchscreen MacBook Pro.

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Business

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AI Analysis

Tone

Mixed

In short

Key Points

Anticipated gross margins of 45% to 46% for the upcoming quarter signaled near-term profi…: Anticipated gross margins of 45% to 46% for the upcoming quarter signaled near-term profitability compression to investors.
Growth in the high-margin Services segment is expected to decelerate to a range of 8% to…: Growth in the high-margin Services segment is expected to decelerate to a range of 8% to 9%.
Commercial success will increasingly depend on upcoming hardware releases, including the…: Commercial success will increasingly depend on upcoming hardware releases, including the foldable iPhone Duo and touchscreen MacBook Pro.

Topics

Business

Was this summary useful?

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Apple shares fall 4% despite revenue beat in first earnings under CEO John Ternus; what's next for the iPhone maker?

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