Global Finance News
03 Nov 2026, 09:06
Apple Falls 4.5% Premarket Despite Record Q4 Revenue as Tariff Refunds Boost Reported Margins
Apple (NASDAQ: AAPL) shares fell about 4.5% in premarket trading despite reporting record fiscal fourth-quarter 2026 revenue, iPhone sales and earnings per share.
Quarterly revenue rose 12% year over year to $114.5 billion, marking a September-quarter record. Apple also said iPhone revenue reached a September-quarter high, while Services revenue set a new all-time record.
Diluted EPS increased 14% to $2.10. Gross margin was 47.9%, but the quarter benefited from approximately 1 percentage point of favorable impact from tariff refunds. The refunds also added about $0.05 to EPS, meaning part of the reported margin and earnings strength came from a non-recurring benefit.
Apple generated $28 billion of operating cash flow during the quarter and returned $28 billion to shareholders. For the full fiscal year, revenue reached a record $479 billion, while the installed base of active devices also reached new highs across major product categories and geographic regions.
The company highlighted its new iPhone lineup, expanded home hardware portfolio and the rollout of its new Siri AI capabilities as key products heading into the holiday season.
The 4.5% premarket decline suggests investors are looking beyond the strong headline numbers. One possible concern is the quality of the margin and EPS beat, given the meaningful contribution from tariff refunds. With the press release not providing detailed forward guidance, the selloff may also reflect expectations that were already elevated ahead of the report, leaving the market focused on underlying profitability and the sustainability of growth once temporary tariff benefits are excluded.
Apple (NASDAQ: AAPL) shares fell about 4.5% in premarket trading despite reporting record fiscal fourth-quarter 2026 revenue, iPhone sales and earnings per share.
Quarterly revenue rose 12% year over year to $114.5 billion, marking a September-quarter record. Apple also said iPhone revenue reached a September-quarter high, while Services revenue set a new all-time record.
Diluted EPS increased 14% to $2.10. Gross margin was 47.9%, but the quarter benefited from approximately 1 percentage point of favorable impact from tariff refunds. The refunds also added about $0.05 to EPS, meaning part of the reported margin and earnings strength came from a non-recurring benefit.
Apple generated $28 billion of operating cash flow during the quarter and returned $28 billion to shareholders. For the full fiscal year, revenue reached a record $479 billion, while the installed base of active devices also reached new highs across major product categories and geographic regions.
The company highlighted its new iPhone lineup, expanded home hardware portfolio and the rollout of its new Siri AI capabilities as key products heading into the holiday season.
The 4.5% premarket decline suggests investors are looking beyond the strong headline numbers. One possible concern is the quality of the margin and EPS beat, given the meaningful contribution from tariff refunds. With the press release not providing detailed forward guidance, the selloff may also reflect expectations that were already elevated ahead of the report, leaving the market focused on underlying profitability and the sustainability of growth once temporary tariff benefits are excluded.
