Apple posts record fourth-quarter results — why the stock is still falling after hours

Technology group Apple Inc. (ISIN: US0378331005) has reported its financial results for the fourth fiscal quarter of 2026. In the first earnings report under new CEO John Ternus, the company posted revenue growth of twelve percent and significantly exceeded analysts’ expectations. Nevertheless, investors reacted with slight price declines in after-hours trading.

Record revenue thanks to strong iPhone business and services segment

In the fourth fiscal quarter of 2026, which ended in September, Apple increased group revenue to 114.48 billion US dollars, compared with 102.47 billion US dollars in the prior-year period. Net profit rose to 30.71 billion US dollars, corresponding to earnings per share (EPS) of 2.10 US dollars (previous year: 1.85 US dollars). The result was boosted by a one-off effect from tariff refunds of about 0.05 US dollars per share, but even adjusted it was above analysts’ consensus estimates. The main driver was the iPhone division, which generated revenue of 57.58 billion US dollars, up 17 percent year on year. In addition, the services business reached a new high of 31.57 billion US dollars, with a gross margin of around 76 percent.

Concerns over chip costs and margins weigh on the outlook

Despite the strong operating performance, Apple shares fell by around 2.8 percent in U.S. after-hours trading to about 328.85 US dollars, after closing the regular trading session at 338.32 US dollars. The restraint among market participants was triggered by statements from management during the analyst conference. Apple warned of persistently high prices for memory chips (NAND/DRAM) and rising investments in AI infrastructure, which could weigh on margins in the upcoming important holiday quarter. Given a price-to-earnings ratio of close to 36, investors reacted sensitively to the prospect of temporary margin pressure.

Relevance for retail investors and heavyweight holdings in portfolios

For retail investors who are invested in Apple directly or via broadly diversified ETFs such as the MSCI World or S&P 500, the results underscore the company’s strong market position. With operating quarterly cash flow of 28.1 billion US dollars and a global base of more than 2.5 billion active devices, Apple has a highly profitable foundation. While short-term challenges from rising component costs remain, pricing power in the flagship segment and steady growth in high-margin services secure long-term earnings power.

Apple is delivering record operating results and demonstrating pricing power, but is facing higher component costs in the short term. For long-term investors, the core investment story remains intact, even if the high valuation is likely to cause share-price volatility in the near term.