Apple stock drops nearly 3% after hours following Q4 2026 results
Apple shares fell nearly 3% in after-hours trading following the Q4 2026 earnings report amid supply constraints and cautious guidance.
Apple reported its fiscal Q4 2026 results, posting a 12% increase in revenue and net profit. Despite record results in the Services category and solid iPhone sales, the company's stock experienced a downward correction during after-hours trading.
- Total revenue and net profit both increased by 12% year-over-year.
- iPhone revenue grew by 17% and Mac revenue surged by 24%.
- Wearables and iPad segments dropped by 8% and 10% respectively due to difficult comparisons.
- Shares fell 2.81% in after-hours trading to close at $328.81.
Detailed Segment Breakdown
The financial report revealed mixed performance across Apple's hardware and services ecosystem. iPhone sales showed robust growth with a 17% increase, while Mac revenue jumped by 24% compared to the previous year.
On the other hand, the Wearables, Home, and Accessories sector dropped 8%, which Apple attributed to tough comparisons with the Watch SE 3 and AirPods Pro 3 launches. Meanwhile, iPad revenue declined 10% due to supply constraints and a tough baseline from the prior year's A16 iPad launch.
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During the earnings call, CEO John Ternus, CFO Kevan Parekh, and COO Sabih Khan addressed questions regarding rising memory costs, recent hardware price increases, and ongoing supply chain bottlenecks affecting products like the iPhone Duo.
Looking ahead to the holiday quarter, executives provided a mixed outlook. While Apple expects its highest quarterly revenue ever, it anticipates slower year-over-year growth, lower profit margins, and continued shortages for Mac and iPad models.
Stock Performance and Market Reaction
After closing the regular trading session down 1.83%, Apple shares initially ticked up following the earnings release. However, as the executive call progressed, selling pressure intensified.
The stock fell as much as 4.43% to $323.33 before recovering some ground to end the after-hours session at $328.81, down 2.81%. Investors will closely monitor market sentiment when regular trading resumes on Tuesday.
Source: 9to5Mac
