Apple Topped Forecasts in Ternus' Debut Quarter, but Shares Still Slid

In John Ternus' debut quarter as chief executive, Apple topped Wall Street's forecasts for both profit and sales. Even so, the shares shed roughly 1% in after-hours trading, and revenue from Greater China came up short.

Earnings came to $2.10 a share on $114.5 billion of revenue, 12% higher than a year earlier. The consensus had been roughly $2.00 a share and $113.4 billion.

Shares ended Monday's session at $338.32, a decline of 1.83%, before easing to $335.00 once the results landed. According to Pepperstone, options traders had positioned for a swing of about 3.5%.

Where Apple Topped Forecasts, and Where It Fell Short

The results opened a heavy week on Wall Street. Investors, though, were fixed on two figures that could move the price:

• Net income climbed 12% to $30.71 billion.

Apple said one-off tariff refunds contributed $0.05 to earnings per share.

• Gross margin — the portion of sales retained after production costs — reached 47.9%.

That sits close to the top of the 47% to 48% range Apple had guided to. Tariff refunds accounted for one percentage point of it.

Memory chip costs are still the strain. AI data centers are absorbing supply, and SK Hynix has projected a memory shortage lasting until 2030.

iPhone revenue set a September-quarter record at $57.58 billion, 17% higher. Mac sales climbed 24% to $10.79 billion.

Greater China expanded 21% to $17.54 billion, short of the roughly $18.55 billion analysts had forecast. iPad sales dropped 10% and wearables 8%, while Services met estimates at $31.57 billion.

Apple $AAPL Q4'26 revenue growth by segment (YoY)

By product:
– iPhone: +17%
– Services: +10%
– Mac: +24%
– iPad: -10%
– Wearables, Home and Accessories: -8%

By region:
– Americas 🇺🇸: +10%
– Europe 🇪🇺: +12%
– Greater China 🇨🇳: +21%
– Japan 🇯🇵: -1%
– Rest of Asia Pacific: +15%…

— Wall St Engine (@wallstengine) November 2, 2026

“Today, Apple is proud to report a September quarter revenue record of $114.5 billion, up 12 percent from a year ago, with iPhone reaching a September quarter record and Services reaching an all-time high, capping off our best fiscal year ever.”

What Is Weighing on Apple Shares After the Beat?

Much of the decline predated the figures. Apple lost 1.83% in Monday's regular session, hours before the report was released.

The results then gave sellers little reason to leave. InvestingLive described Greater China as the quarter's obvious soft spot and said the miss could limit any rally.

One-off assistance accounted for part of the outperformance as well. Strip out the $0.05 tariff refund and earnings would have been $2.05 a share — a thinner beat.

A larger test lies ahead. Apple will issue its December-quarter outlook on the earnings call, the first quarter to take in a full holiday season of iPhone 18 Pro sales, InvestingLive noted.

Why Are German Officials Being Warned About Their iPhones?

Germany has also handed Apple a security scare. Digital Minister Karsten Wildberger confirmed that Apple alerted some lawmakers and ministers to “mercenary spyware,” the hacking tools typically sold to governments.

BREAKING: Germany warns government officials that their iPhones may have been compromised by sophisticated spyware capable of infecting devices without users clicking anything.

— Polymarket (@Polymarket) November 2, 2026

The Federal Office for Information Security (BSI) advised them to assume their devices are compromised. No attacker has been named and Apple has not commented, Euronews reported.

Apple markets the iPhone on privacy. Attention now shifts to the December quarter, for which analysts expect $2.88 a share, according to Nasdaq data.