Apple's stock drops on weak margin forecast in Ternus’ first earnings report
Apple shares declined following a disappointing gross margin forecast in new CEO John Ternus' first earnings report. Despite the stock drop, the company beat overall Wall Street expectations for the fourth quarter, driven by record iPhone sales. Profit grew 12 percent, though growth has decelerated overall. A significant drag on performance was Greater China, where revenue missed estimates by approximately $1 billion. The results highlight a tension between strong hardware demand and rising costs, specifically regarding memory components.
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- ✓ Apple's profit grew 12 percent.
- ✓ iPhone sales reached record levels and led revenue upward.
- ✓ Apple beat overall fourth-quarter estimates.
- ✓ Revenue from Greater China missed estimates by about $1 billion.
What changed
Apple reported Q4 2026 earnings showing a profit increase of 12 percent alongside a weak margin forecast.
Live updates
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Apple Stock Slips on Weak Margin Forecast Despite Q4 Earnings Beat
Apple shares declined following a disappointing gross margin forecast in new CEO John Ternus' first earnings report. Despite the stock drop, the company beat overall Wall Street expectations for the fourth quarter, driven by record iPhone sales. Profit grew 12 percent, though growth has decelerated overall. A significant drag on performance was Greater China, where revenue missed estimates by approximately $1 billion. The results highlight a tension between strong hardware demand and rising costs, specifically regarding memory components.
Why it matters
This marks the first financial report under John Ternus' leadership as CEO. The results arrive amid concerns over component pricing and shifting demand in the Chinese market. Investors are weighing record device sales against the long-term sustainability of profit margins.
What is confirmed
- Apple's profit grew 12 percent.
- iPhone sales reached record levels and led revenue upward.
- Apple beat overall fourth-quarter estimates.
- Revenue from Greater China missed estimates by about $1 billion.
- John Ternus is the new CEO of Apple.
- Apple issued a gross margin forecast that disappointed Wall Street.
What to watch next
- Apple's holiday guidance updates
- Further data on China sales recovery
- Impact of memory component costs on future margins
confidence 95%Sources used for this update (21)
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