Apple shares fall 4% despite revenue beat in first earnings under CEO John Ternus; what's next for the iPhone maker?
A Ksheerasagar
Shares of Apple Inc. slipped 4% in Tuesday’s trade on November 3, falling to $325 apiece, as the company’s fourth-quarter performance offered a mixed picture to investors. The results also marked the first quarterly report under its new Chief Executive Officer, John Ternus.
The iPhone maker reported revenue of $114.5 billion for the fiscal fourth quarter ended September 26, up 12% from the same period last year. The figure narrowly beat analysts’ estimates, with the average projection at $113.5 billion, according to data compiled by Bloomberg.
Ternus became CEO on September 1, putting him in charge for the final month of Apple’s fourth quarter. He has since overseen the unveiling of the foldable iPhone Duo, touchscreen MacBook Pro, and HomeView hub, although none of these products went on sale until the current quarter, which runs through December.
iPhone revenue, which accounted for the bulk of the company’s top line, reached $57.6 billion, up from $49.0 billion a year earlier. This indicates that the company is weathering a shift in its product launch schedule. Apple typically launches multiple new iPhone models in September, but this time it released only the iPhone 18 Pro line.
The regular iPhone 18 and the new iPhone Air are not expected to arrive until the first half of 2027, while the foldable iPhone Duo was launched only on October 23, well into the following quarter.
Services, a segment that includes music streaming, the App Store, iCloud subscriptions, Apple TV and other digital offerings, rose 9.8% to $31.6 billion, in line with estimates. Earnings came in at $2.10 per share, beating the estimate of $2.
Mac revenue climbed 24% to $10.8 billion, significantly exceeding the average analyst projection of $9.7 billion. A fresh wave of products is also expected to help sustain momentum. The company’s touchscreen MacBook Pro, refreshed iMac, and new entry-level MacBook Pro are scheduled to ship on November 6.
Memory is the problem. Gross margin came in at 47.9%, but tariff refunds supplied about 1 percentage point of that.
Apple guided its December-quarter gross margin to 45% to 46%, below the 46.3% average estimate, and services growth to 8% to 9%, signaling a slowdown. It also expects revenue to grow 7% to 10%.
Domestic brokerage firm Vested Finance said Apple’s quarter shows that the core investment case remains anchored in the strength of its ecosystem and its ability to generate cash consistently. Revenue grew 12% year-on-year to a September-quarter record of $114.5 billion, while EPS increased 14% to $2.10. iPhone recorded its best September quarter, and Services reached an all-time high, which is important because it shows growth is not dependent on a single product cycle.
The brokerage said investors should, however, look beyond the headline beat. Gross margin of 47.9% benefited by roughly one percentage point from tariff refunds, while EPS received a $0.05 benefit.
The more durable numbers are the record installed base and $28 billion of operating cash flow generated during the quarter. Apple returned the same amount to shareholders and has also declared a $0.27 quarterly dividend.
The way to look at Apple from here is less about whether every quarter produces a major new growth story and more about whether it can continue expanding its installed base, monetising that base through services, and converting revenue growth into cash.
With new hardware and Siri AI now entering the product cycle, execution and the incremental revenue these products generate will matter more than the headline around AI itself, said the brokerage.
On Vested, Apple continues to be among the most actively traded US stocks, featuring in the platform's top 10 traded stocks in October 2026. This reflects sustained investor interest in established global technology companies.
(With inputs from Bloomberg)
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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