Apple projects record holiday revenue but warns memory and AI costs will pressure margins
Apple forecast that its December quarter will set an all-time revenue record with 7% to 10% growth, but warned that unprecedented memory costs and Siri AI spending will compress gross margins below Wall Street expectations.
Apple delivered a mixed forecast in its first quarterly report under Chief Executive Officer John Ternus. On its earnings call, the company projected fiscal first-quarter 2027 revenue to grow between 7% and 10% year over year, topping analyst expectations of roughly 6.1%. Apple said it expects the December period to be the best revenue quarter in company history despite ongoing supply constraints.[1][8][10][12][13]
That upbeat top-line outlook was overshadowed by weaker profitability projections. Apple guided gross margin to a range of 45% to 46%, falling short of Wall Street estimates of 46.3%. The company attributed the margin squeeze to higher memory component pricing and ramp-up expenses for Siri AI. Ternus described current memory pricing as unprecedented and indicated costs would continue to climb beyond December. Apple also guided services revenue growth of 8% to 9% and operating expenses between $20.4 billion and $20.8 billion.[1][3][5][6][11][14][16]
The margin forecast dragged Apple shares down approximately 4% in premarket trading, dampening enthusiasm for an otherwise strong September quarter. For the fourth quarter of fiscal 2026, global revenue climbed 12% to $114.5 billion and net profit rose 11.8% to $30.7 billion, driven by a 24% surge in Mac revenue to $10.8 billion and a 10% rise in services revenue to $31.6 billion.[2][4][9]
Apple also highlighted regional momentum in India, where revenue reached an all-time high for the September quarter. Company leadership confirmed record iPhone upgrade activity alongside new quarterly peaks for Mac and services sales in the country, supported by commercial initiatives including the rollout of Apple Pay with Axis Bank.[4][7][15][17][18]
Key facts
- Apple guided fiscal Q1 2027 revenue to grow 7% to 10% year over year, above consensus estimates of roughly 6.1%.
- Apple projected Q1 gross margins between 45% and 46%, trailing analyst estimates of 46.3%, due to higher memory costs and Siri AI ramp expenses.
- CEO John Ternus characterized current memory pricing as unprecedented and stated that prices continue to rise beyond December.
- Apple guided Q1 services revenue growth to 8% to 9% and operating expenses to $20.4 billion to $20.8 billion.
- In Q4 FY26, Apple's global revenue rose 12% to $114.5 billion and net profit rose 11.8% to $30.7 billion.
- Apple shares dropped approximately 4% in premarket trading following the holiday quarter margin guidance.
- Apple recorded an all-time revenue high in India for the September-ending quarter, with record iPhone upgrades and peak Mac and services sales.
Sources · 15 sources
- WS
Wall St Engine@wallstenginePost on X ·
APPLE $AAPL Q1' 27 OUTLOOK (EARNINGS CALL) 🔹 Revenue: +7% to +10% YoY (Est. +6.1%) 🟢 🔹 Gross Margin: 45%-46% (Est. 46.3%) 🔴 🔹 Services: +8% to +9% YoY 🔹 OpEx: $20.4B-$20.8B (Est. $20.23B) 🔸 Gross margin reflects higher memory costs and Siri AI ramp costs
Open source - RM
Rekt Mkts@RektMktsPost on X ·
Daily Brief, 3 Nov: Midterms are here...can they change the mood? Get the brief by email: https://t.co/vLaSSMqC6k Join Rekt Mkts Pro: https://t.co/tpKPk67feu Well, soon enough we will find out the results of midterms, and my theory that a resolution will be positive for the market shall be tested. Polymarket currently prices in a 77% chance of a Dem sweep. It's tough to judge whether the market has already price in this outcome or not...obviously both crypto and AI have been beaten up heavily in the past few sessions but there are real concerns wrt earnings, spending and security threats...I suppose the argument is that maybe these moves are somewhat exacerbated due to the midterm uncertainty. MACRO December WTI futures are recovering some of yday's roughly 8% fall on hopes of a diplomatic resolution to the US-Iran war. Reports of a US strike on Qeshm Island and an Iranian official saying a deal remains far off have made that relief harder to rely on. There are still reports of efforts to restart negotiations, but that isn't an agreement to end the war and by now at this hour it's starting to feel a bit like clutching straws. The US 10Y is around 4.91%, edging higher after finishing Monday around 4.89%, while gold is giving back much of Monday's gain. EQUITIES US equity futures are mixed, with Nasdaq-100 futures outperforming (+0.4%) as chips bounce despite Apple's decline. Apple is down around 4% in premarket after warning that rising memory costs will squeeze its holiday-quarter gross margin to 45-46%. Revenue beat expectations, but shareholders are focused on how much of those sales it gets to keep. Yday's brief framed Apple as a different earnings test from the hyperscalers because it isn't spending on data centres at anything like their scale...avoiding that cash burn hasn't spared it from a squeeze elsewhere it seems! Nvidia, AMD and Micron are higher in premarket, so this isn't simply another session of every chip name getting sold and shows company-specific developments starting to hold more weighting. Expensive memory is good for suppliers' pricing and a problem for customers like Apple, which helps explain why the same news doesn't have to mean the same thing for both. AMD reports after the close today. Its outlook gives the market something more concrete to respond to than election expectations, particularly whether demand is strong enough. CRYPTO BTC is down around 0.8% over 24H, ETH 0.4%, SOL 1.3% and HYPE 1.2%. ETH is holding up better than the other majors here, altho it's no longer positive as it was in yday's brief. Crypto still isn't giving much relief ahead of the election, even with US chip stocks trying another premarket bounce. US spot BTC ETFs lost $398.6m yday, taking the outflow across Friday and Monday to roughly $1.04bn. ETH funds lost $139.7m, their sixth consecutive session of outflows. BTC's four-day run of inflows last week has now been followed by two much larger withdrawals...the start of the new week hasn't reversed that deterioration. ZEC is down 4.6% and VVV 1.7% over 24H. Their BTC ratios are down around 3.8% and 0.9% respectively over the same period, so both are underperforming rather than just following a weaker BTC. ZEC holding up through previous market dips was the useful distinction in recent briefs...today the PA is different. One day doesn't settle the longer-term case for privacy, but it does make it harder to treat that theme as protection from the immediate selling; nonetheless, there is a decent rebound today and I still believe it's the best asset to "hide" in for now. Good luck today.
Open source - QU
Quartz@qzPost on X ·
Apple stock fell as rising memory costs sent its holiday margin forecast below expectations: Apple projected a December-quarter gross margin of 45% to 46%, below the 46.3% analysts expected, according to CNBC dlvr.it/TW9ccp https://t.co/CHJStKwg8L
Open source - IN
Inc42@Inc42Post on X ·
Apple Logs Record India Revenue As iPhone, Mac And Services Hit New Highs. 👇 Apple reported its highest-ever revenue in India in Q4 FY26, with its iPhone business recording its best September quarter and Mac and services revenue reaching new highs. The company also saw a September quarter record for iPhone upgraders in India. Globally, Apple’s revenue rose 12% YoY to $114.5 Bn, while net profit grew 11.8% to $30.7 Bn. Its global Mac revenue surged 24% to $10.8 Bn, while services revenue grew 10% to a record $31.6 Bn. 🔗 Read more about Apple’s India growth here: https://t.co/6rF9bgmOmI #Apple #iPhone #AppleIndia #Tech #News
Open source - RE
Reuters@ReutersPost on X ·
Apple forecasts margin drop in holiday quarter as rising memory costs bite https://t.co/U76vmFgw4H
Open source - TE
TechRadar@techradarPost on X ·
'What we're seeing with memory pricing right now is unprecedented': new CEO issues Apple's bleakest warning on the RAM crisis yet — and that's a big worry https://t.co/j6uCD1sFj5
Open source - ET
Economic Times@EconomicTimesPost on X ·
Apple Inc's revenue hits all-time India high in September quarter https://t.co/0sqtWAO0g8
Open source - BL
Bloomberg@businessPost on X ·
Apple delivered a mixed outlook to investors in its first quarterly report under Chief Executive Officer John Ternus, with narrower profit margins overshadowing an upbeat sales forecast. @EdLudlow reports https://t.co/BC9IqOx09c https://t.co/g474iyrlIN
Open source - MI
Mint@livemintPost on X ·
Apple shares fell 4% after quarterly revenue rose 12% to $114.5 billion and earnings beat estimates. Strong iPhone, Mac and services results were offset by a weaker gross-margin outlook and expected slowdown in services growth. https://t.co/uW1rNh7jjx
Open source - 9T
9to5Mac@9to5macPost on X ·
Apple forecasts its biggest revenue quarter ever despite supply constraints https://t.co/KREZt5hQ05 by @mvcmendes
Open source - 9T
9to5Mac@9to5macPost on X ·
Apple says memory costs and Siri AI will weigh on holiday quarter profit margins https://t.co/EPaVKPofg7 by @mvcmendes
Open source - TE
TechmemeArticle ·
Apple expects Q1 revenue to rise 7%-10% YoY, above 6% est., and gross margins of 45%-46%, below 47% est., as John Ternus says memory pricing "is unprecedented" (Michael Acton/Financial Times) Michael Acton / Financial Times : Apple expects Q1 revenue to rise 7%-10% YoY, above 6% est., and gross margins of 45%-46%, below 47% est., as John Ternus says memory pricing “is unprecedented” — Hardware giant predicts robust sales in the holiday season but services outlook disappoints
Open source - 9T
9to5Mac@9to5macPost on X ·
On today's earnings call, Apple said it expects its December quarter to be "the best quarter for revenue in the history of the company." Revenue is projected to grow 7-10% year over year despite supply constraints. https://t.co/KREZt5hQ05 https://t.co/tnhyudWO7X
Open source - SB
Shay Boloor@StockSavvyShayPost on X ·
$AAPL just gave memory bulls another pretty loud signal because higher costs are now squeezing margins while AI keeps pushing more DRAM into every device. CEO John Ternus called pricing “unprecedented” and said it keeps rising beyond December which is great for $MU and $SKHY. https://t.co/iJIdMB1vjz
Open source - DI
Digit@digitindiaPost on X ·
Apple is smashing records in India! iPhone and Mac sales hit new highs as the tech giant reports its biggest-ever revenue. https://t.co/zHX4TCQwwd https://t.co/ELOqeSLPLG
Open source - AI
Analytics Insight@analyticsinmePost on X ·
𝐒𝐢𝐫𝐢 𝐀𝐈 𝐒𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐀𝐝𝐝𝐬 𝐭𝐨 𝐀𝐩𝐩𝐥𝐞’𝐬 𝐇𝐨𝐥𝐢𝐝𝐚𝐲-𝐐𝐮𝐚𝐫𝐭𝐞𝐫 𝐂𝐨𝐬𝐭 𝐏𝐫𝐞𝐬𝐬𝐮𝐫𝐞 Apple warns that rising memory costs and Siri AI spending will squeeze margins in its crucial holiday quarter, despite strong revenue growth expectations. #Apple #Earnings #Apple #AAPL #Earnings #TechNews #Semiconductors #analyticsinsight #analyticsinsightmagazine Read More 👇 https://t.co/N3SxvUCO3I
Open source - AI
Analytics Insight@analyticsinmePost on X ·
𝐀𝐩𝐩𝐥𝐞'𝐬 𝐈𝐧𝐝𝐢𝐚 𝐌𝐨𝐦𝐞𝐧𝐭: 𝐑𝐞𝐜𝐨𝐫𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞, 𝐌𝐨𝐫𝐞 𝐢𝐏𝐡𝐨𝐧𝐞 𝐔𝐩𝐠𝐫𝐚𝐝𝐞𝐫𝐬 Apple has achieved its highest-ever India revenue for the September quarter of fiscal 2026, CEO John Ternus has confirmed. Record iPhone upgrades, stronger Mac sales and growth in Services contributed to the performance. The company also highlighted the launch of Apple Pay with Axis Bank, adding another development to its expanding presence in India. #AppleIndia #JohnTernus #iPhoneIndia #AppleRevenue #AppleEarnings #TechNews #AI #AINews #AnalyticsInsight #AnalyticsInsightMagazine Read More 👇 https://t.co/CGKz8y4Ryp
Open source - BU
businessline@businesslinePost on X ·
Apple Inc announced an all-time record quarter in India for the September-ending period. https://t.co/HA8TqxFv0Z @survivalla https://t.co/nqG42iDlcN
Open source