Apple stock dips despite fiscal 2026 revenue beat

Apple exceeded Wall Street expectations in its fiscal 2026 fourth quarter, posting $114.5 billion in revenue and earnings per share of $2.10. Performance in the iPhone and Mac segments outperformed analyst forecasts, contributing to what CEO John Ternus described as the company's strongest fiscal year to date.

Despite the positive results, Apple shares declined approximately 2% following the report. Investors reacted to the company's first-quarter guidance for fiscal 2027, which projected gross margins of 45% to 46%. This forecast fell short of the 46.3% margin analysts had anticipated and represents a decline from the 47.9% margins reported in the previous quarter.

CFO Kevan Parekh attributed the projected margin compression primarily to the rising cost of memory components, compounded by investments in the company’s Siri AI features. The current market environment reflects the impact of high demand for memory chips from AI data centers, which has constrained supply and increased production costs for consumer electronics manufacturers.

By absorbing a portion of these increased component costs rather than passing them entirely to consumers, Apple aims to maintain demand for its hardware. The market response highlights a shift in investor focus from past performance toward the potential impact of supply chain costs on future profitability.