Apple shares fall in extended trade after revenue, margin guidance disappoints Wall Street

Shares of iPhone and other devices manufacturer Apple Inc. fell as much as 4.5% in extended trading on Monday, November 2, despite its fourth quarter results for fiscal 2026 turning out to be better than what the street had anticipated. The stock through, fell after its guidance left market participants disappointed.

For the quarter gone by, Apple reported revenue of $114.48 billion, higher than the $113.39 billion anticipated by analysts. Its Earnings Per Share (EPS) of $2.1 was also higher than the expectations of $1.99.

Among its various business segments, the company's iPhone and Mac revenue came in higher than estimates, while the topline from iPad, other products turned out to be lower than expectations. Wearables, Home and Accessories revenue of $31.57 billion was in-line with estimates.

For the ongoing quarter, Apple expects revenue to grow between 7% and 10%, and although that is higher than the 6.4% that analysts were looking for on average, it is still slower than the 12% growth seen in the fourth quarter. Gross margins are likely to be between 45% to 46%, behind the average estimate of 46.3% and also slower than the 47.9% reported in the quarter gone by.

Apple's China sales increased by 21% from last year to $17.5 billion, but fell short of expectations by $1 billion during the quarter.

The results are the first full quarter of price hikes undertaken by the company in June owing to supply challenges for memory and other parts. iPhone prices were raised by up to $100.

Apple's shares, after a 4.5% drop in extended trade post the initial guidance, recovered slightly after new CEO John Ternus said that the company has never been more confident that the best is yet to come. Tariff refunds contributed 5 cents towards Apple's EPS.

Ternus also highlighted that a regular iPhone18 and the new iPhone Air are not arriving until the first half of 2027. Apple usually launches new phones in September, but only released the iPhone18 PRO line this time around.

Shares of Apple are down 2.7% in extended trading, having closed 1.8% lower in regular trade as well. Over the last six months, the stock has gained 22%, adding over $1 trillion to its market capitalization.