Apple beats revenue estimates but weak margin forecast hits shares

· Tech · United States

Apple reported fiscal fourth-quarter revenue of $114.5 billion, topping Wall Street estimates of about $113.46 billion, and earnings per share of $2.10, also above forecasts, in new CEO John Ternus's first earnings report. But the company missed on China and iPad sales and forecast rising costs and lower services revenue, sending shares lower in extended trading. The results come as Apple navigates the AI investment race and trade tensions. Investors focused on the margin guidance rather than the revenue beat, with the stock dropping after hours.

Why it matters：Apple's first results under a new CEO are a key test of whether the world's biggest company can keep margins while spending heavily on AI.

Key points

  • Revenue of $114.5 billion beat estimates of $113.46 billion.
  • EPS of $2.10 topped forecasts.
  • China and iPad sales missed expectations; the company forecast rising costs.

Sources (original reporting)

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