Apple stock faces holiday margin squeeze after record quarter

Apple reported record fiscal 2026 results on November 2, but the holiday quarter brings a sharper profitability test. In a press release from Apple, the company said fiscal fourth-quarter revenue rose 12 percent year over year to 114.5 billion US dollars for the period ended September 26.

Apple stock traded at 311.00 euros on Lang & Schwarz at 13:26 CET on Wednesday, November 11, 2026, 0.26 percent below the Xetra close of Tuesday, November 10. The Xetra comparison uses the 311.80-euro close for Apple under the APC.DE symbol.

Record quarter raises the bar

Apple's diluted earnings per share increased 14 percent year over year to 2.10 US dollars. The company said the figure included a 0.05-dollar benefit from tariff refunds. Gross margin reached 47.9 percent, also helped by roughly one percentage point from those refunds.

iPhone revenue reached a September-quarter record, while Services revenue set an all-time high. Apple finished fiscal 2026 with revenue of 479 billion US dollars, according to CEO John Ternus and CFO Kevan Parekh in the company's release. Operating cash flow reached 28 billion US dollars during the quarter, and Apple said it returned the same amount to shareholders.

Memory costs challenge holiday margins

A Reuters report published by the Charlotte Observer said Apple expects gross margin of 45 to 46 percent in the quarter ending in December, below the September-quarter level. Services revenue is expected to grow 8 to 9 percent, below the 10.7 percent analyst expectation cited in the report.

Reuters said Apple expects memory costs to keep rising into next year. Ternus said higher memory costs were partly offset by inventory carried into the quarter, lower costs for some non-memory components and product price increases. Apple raised prices for some iPhones and MacBooks, but the measures do not eliminate the pressure on profitability.

The same report said Apple cannot currently meet demand for the iPhone Duo and has no timetable for balancing supply and demand. That constraint supports pricing power but also limits the volume Apple can convert during the key holiday period. Investors will therefore weigh strong product demand against component inflation, supply execution and the cost of expanding Siri AI.

Next investor dates and market backdrop

Apple's board declared a quarterly dividend of 0.27 US dollars per share. The payment is scheduled for November 16, 2026, to shareholders of record at the close of business on November 12.

US equities provide the broader market backdrop for Apple stock in the S&P 500 market reports.

Further earnings, product-demand and margin developments will shape the next assessment of Apple stock. More news and analyses on Apple stock.