Apple's stock drops on weak margin forecast in Ternus’ first earnings report: Live updates
Apple shares declined following the first earnings report under new CEO John Ternus. While the company beat Q4 estimates and saw profit grow 12 percent driven by strong iPhone sales, a disappointing gross margin forecast and rising memory-chip costs weighed on the stock. Revenue growth has decelerated, specifically in Greater China, where sales missed estimates by approximately $1 billion. The report presents a mixed debut for Ternus, combining record hardware performance with concerns over component pricing and regional revenue shortfalls.
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- ✓ Apple's profit grew 12 percent.
- ✓ iPhone sales were strong and led revenue upward.
- ✓ Apple beat Q4 earnings estimates.
- ✓ Greater China sales missed estimates by about $1 billion.
What changed
Apple released its Q4 2026 earnings report featuring record iPhone sales but a weak margin forecast.
Live updates
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Apple stock falls on weak margin forecast despite Q4 earnings beat
Apple shares declined following the first earnings report under new CEO John Ternus. While the company beat Q4 estimates and saw profit grow 12 percent driven by strong iPhone sales, a disappointing gross margin forecast and rising memory-chip costs weighed on the stock. Revenue growth has decelerated, specifically in Greater China, where sales missed estimates by approximately $1 billion. The report presents a mixed debut for Ternus, combining record hardware performance with concerns over component pricing and regional revenue shortfalls.
Why it matters
This marks the first Wall Street test for John Ternus since taking the helm as CEO. Investors are focusing on how rising component costs and geopolitical headwinds in China impact long-term profitability. The tension between record iPhone demand and narrowing margins defines the current market reaction.
What is confirmed
- Apple's profit grew 12 percent.
- iPhone sales were strong and led revenue upward.
- Apple beat Q4 earnings estimates.
- Greater China sales missed estimates by about $1 billion.
- Apple's stock price dropped following the report.
- John Ternus is the new CEO of Apple.
Still unconfirmed
- Rising memory-chip costs are contributing to the stock decline.
- Apple issued a gross margin forecast that disappointed Wall Street.
What to watch next
- Holiday season guidance updates
- Further data on China revenue recovery
- Updates on AI integration and its impact on iPhone sales
confidence 95%Sources used for this update (13)
- CNBC — Apple earnings live updates: New CEO John Ternus faces first Wall Street test
- Bloomberg.com — Apple Growth Decelerates, With China Sales Missing Estimates
- Yahoo Finance — Apple earnings live: Apple beats Q4 estimates on strong iPhone sales but misses on China revenue
- The New York Times — Apple’s Profit Grows 12 Percent Despite Component Price Worries
- Axios — iPhone sales lead Apple revenue upward as John Ternus takes reins
- www.cnbc.com — Apple's stock drops on weak margin forecast in Ternus’ first earnings report: Live updates
- Reuters — Apple results beat Wall Street expectations on strong iPhone sales
- siliconangle.com — Apple’s stock drops as new CEO John Ternus delivers his first earnings call
- MacRumors — Apple's Q4 2026 Earnings Call Takeaways
- Fortune — New Apple CEO John Ternus chalks up some early wins, but the honeymoon is over
- www.cnbc.com — Apple earnings: John Ternus faces first test amid high memory ...
- finance.yahoo.com — Apple Beats Earnings in Ternus' First Quarter: Why Is the ...
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