Apple shares slide after earnings as margin outlook disappoints investors
Apple shares fell 4.5% in premarket trading after results beat estimates, but a weaker margin and services outlook unsettled investors.
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what happened
Apple shares dropped 4.5% to $323.48 in premarket trading on Tuesday, after a decline of nearly 2% on Monday, according to Dow Jones Newswires, citing MarketWatch.
Apple reported revenue of $114.5 billion and earnings per share of $2.10, both above Wall Street consensus. Investors, however, focused on gross margins, which fell to 47.9% for the quarter ended September, down from the prior quarter. The company is targeting 45% to 46% for the next quarter, below the 47% projected, citing high memory costs and expenses tied to ramping up its Siri AI assistant. Services revenue hit a record $31.57 billion, but growth slowed to 9.8% from 12.1%, and guidance of 8% to 9% fell short of the 12% analysts expected.
why it matters
Evercore ISI expects a "choppy gross margin environment" until memory prices stabilize or fall. Morgan Stanley sees the services slowdown possibly extending into the March quarter. For markets, Apple's growth now hinges on cheaper components and proof that its AI features can be monetized.
market impact
Apple shares: weaker margin guidance and slower services growth weigh on AAPL
- Apple shares (AAPL) pressure down — margin guidance below expectations and slower services growth weigh on the stock
tags
instruments
sources
- What analysts are saying as Apple's stock falls after earnings report — Dow Jones Newswires, 3 November 2026 at 10:20 UTC
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