Apple posts record quarter revenue, but shares fall on memory-driven margin outlook
Apple reported $114.5 billion in revenue, up 12%, but guided to a lower gross margin for December as memory costs climb. Source: Dow Jones Newswires.
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what happened
According to Dow Jones Newswires, Apple reported revenue of $114.5 billion for the September quarter, up 12% from a year earlier. Earnings per share came in at $2.10 against Wall Street's $1.99 estimate. A record iPhone quarter supported the results, though revenue from China, wearables and home devices fell short of analyst expectations.
The main concern is memory costs. Apple expects gross margin to contract to between 45% and 46% in the December quarter, down from 47.9% in September. Bernstein analysts tie the margin pressure to higher memory prices and costs for the rollout of the AI-powered Siri. Shares were down about 3% in after-hours trading.
why it matters
For investors, the margin trajectory matters more than the headline beat. If memory cost inflation continues, pressure on profits at large electronics makers could persist. Services growth slowing from 12.1% to 9.8% also raises questions about the company's growth model.
market impact
Apple shares and the Nasdaq 100: a weaker margin outlook weighs on the stock despite strong revenue.
- Apple shares pressure down — expected gross margin contraction from rising memory costs
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- Apple's iPhone business is booming. Here's why the stock is falling anyway. — Dow Jones Newswires, 3 November 2026 at 00:52 UTC
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