Apple earnings rise 14% to $2.10 a share, but stock falls 2.6%
Key Facts
Apple reported results on November 2 for its fiscal fourth quarter ended September 26, posting revenue of $114.5 billion, up 12% year over year, and diluted earnings per share of $2.10, up 14%. Gross margin was 47.9%. Revenue and earnings topped analysts’ estimates, according to The Associated Press, contrary to the preliminary version of the report’s description of the results as mixed. But the stock, which was steady immediately after the figures were released, fell 2.6% to $329.60 during the earnings call. It had ended regular trading down 1.8% at $338.32.
The company posted net income of $30.71 billion for July to September, compared with $27.47 billion in the same period a year earlier. Earnings per share rose to $2.10 from $1.85. However, quarterly profit included a positive impact of 5 cents a share from a tariff refund, according to The Associated Press. Gross margin was 47.9%, putting the company’s outlook for the following period under scrutiny. The report did not establish that Apple’s results weighed on the technology sector as a whole; it instead pointed to the company’s stock falling during the call after holding steady immediately following the results.
Apple offered a broad picture of growth for the fiscal year, saying annual revenue reached $479 billion. iPhone revenue set a September-quarter record, while services generated its highest revenue ever. The company also reported operating cash flow of $28 billion during the quarter. It said that cash flow enabled it to return $28 billion to shareholders. The figures reflect strong revenue and liquidity during the period, while investors await whether the growth pace will continue in the next quarter.
Apple forecast gross margin would decline to a range of 45%–46% in the December quarter, compared with 47.9% in the fiscal fourth quarter. The company attributed the decline mainly to higher memory costs and expenses related to the release of AI-powered Siri. It also forecast services revenue growth of 8% to 9% in the quarter ending in December, below analysts’ expectations of 10.7%, according to Reuters. Thus, quarterly results that were stronger than market estimates coincided with lower forecasts for some indicators in the coming quarter. The company said in its statement that fiscal-year revenue set “a record of $479 billion.”
Apple’s announcement came as U.S. futures were moving higher in the Asian session on November 2, ahead of the results. S&P 500 futures rose 0.4%, while Nasdaq futures gained 0.8%, according to Reuters. By contrast, the Nasdaq lost nearly 7% in October, its worst monthly performance since April 2025, according to the same report. Apple shares closed at $338.32 on November 2, after closing at $344.63 on October 30, according to EL7 data. These moves place the stock’s decline after the call within a session marked by a contrast between rising futures and the Nasdaq’s earlier monthly weakness.
On capital returns, Apple’s board approved a cash dividend of $0.27 a share. It is scheduled to be paid on November 16 to shareholders of record as of the close of business on November 12, 2026. The dividend comes alongside the return of $28 billion to shareholders during the quarter, according to the company’s announcement. In the United States, the September Job Openings and Labor Turnover Survey was scheduled for release on November 3 at 10:00 a.m. The Census Bureau also set the same date and time for the release of the full September report on shipments, inventories and orders; the survey covers domestic manufacturing conditions and provides an indicator of future business trends.