Apple shares fell approximately 4% in premarket trading on Tuesday after the technology giant cautioned that rising memory costs would put pressure on gross margins, heightening investor concerns about persistent supply-chain uncertainties and increasing AI-related expenses.
Apple expects gross margin for the December-ending quarter to range between 45% and 46%, which also reflects the expenses tied to the ramp-up of its AI-powered Siri.
The Company posted quarterly revenue of $114.5 billion, up 12 percent year over year.
John Ternus delivered his first earnings report as Apple CEO on Monday, calling the memory-pricing environment “unprecedented” and expecting costs to continue rising beyond the quarter ending in December.
In the earnings report, Ternus stated: “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. We’re closing the year with our most ambitious lineup yet. That includes the iPhone Duo, the most transformational iPhone since the original, alongside iPhone 18 Pro and iPhone 18 Pro Max, our most powerful iPhones yet. We also just introduced a whole new generation of hardware for the home and brought Touch to Mac for the first time. Together with the all-new Siri AI, it’s an incredible lineup to carry us into the holiday season.”
“Apple delivered September quarter records for net income and EPS. Our record September quarter capped off a strong fiscal 2026, with all-time record revenue of $479 billion and double-digit EPS growth,” said Kevan Parekh, Apple’s CFO. “We generated $28 billion in operating cash flow during the quarter, allowing us to return $28 billion to shareholders. Thanks to our very high levels of customer satisfaction and loyalty, our installed base of active devices reached a new all-time high across all major product categories and geographic segments.”
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