Apple Stock Slides 4% Even After Record $114.5B Quarter
Apple shares fell about 4% to $324.89 in premarket trading on Tuesday, even after the iPhone maker posted a record $114.5 billion in sales for its September quarter, up 12% from a year ago.
Key Takeaways
- Apple stock traded at $324.89 before the opening bell, down from Monday’s $338.32 close
- September-quarter revenue hit a record $114.5 billion and earnings per share rose 14% to $2.10
- About one percentage point of the 47.9% gross margin came from tariff refunds, a one-off boost
- For the December quarter, Apple guided revenue growth of 7% to 10% and a gross margin of 45% to 46%
Apple reported the results after Monday’s close. “Today, Apple is proud to report a September quarter revenue record of $114.5 billion, up 12 percent from a year ago,” said CEO John Ternus.
Why The Stock Is Falling
The record quarter came with a softer outlook. On the earnings call, Apple guided December-quarter sales growth of 7% to 10%, slower than the 12% it just delivered, and a gross margin of 45% to 46%, below the 47.9% it just posted.
Part of that 47.9% was not repeatable. Apple said tariff refunds added about one percentage point to the margin and 5 cents to earnings per share.
The shares were already under pressure before the numbers. They closed Monday at $338.32, down from $344.63 on Friday.
The Numbers
| Measure | September quarter | Change |
|---|---|---|
| Revenue | $114.5 billion | +12% |
| Earnings per share | $2.10 | +14% |
| Gross margin | 47.9% | incl. about 1 point from tariff refunds |
| Cash returned to shareholders | $28 billion |
Over the full fiscal year, Apple’s annual report shows sales of $478.8 billion, up 15%, and net income of $132.2 billion. Services, which include the App Store, iCloud and Apple Music, brought in $123.3 billion, up 13%.
China Is Growing Again
China, a weak spot a year ago, turned into one of Apple’s best regions. Sales in Greater China rose 28% over the year to $82.4 billion, after a 4% drop the year before.
Apple also paid a dividend of 27 cents a share, payable Nov. 16 to shareholders on record on Nov. 12.
What To Watch
The first test is the opening bell at 9:30 a.m. ET, when the premarket move meets full trading volume. After that, the holiday quarter decides whether the slower outlook was cautious or a real slowdown, with the new iPhone line and the AI-powered Siri now on sale for the season.
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