Apple and Palantir shares fell in premarket trading after both companies announced earnings after

Apple and Palantir Shares Fall Following Earnings Reports

Apple and Palantir shares fell in premarket trading after both companies announced earnings after the bell, CNBC reported. Apple shares dropped 4.4% while Palantir shares fell 6% in premarket trading. Although the smartphone manufacturer delivered better-than-projected revenue numbers for its fourth quarter, its iPad revenue missed expectations and it provided an investor forecast regarding margins that failed to impress. Meanwhile, Palantir beat Wall Street’s third-quarter estimates, with U.S. commercial revenue topping government revenue for the first time.

Memory Chip Pressures and CEO Transition at Apple

Apple’s financial results marked the first earnings report since John Ternus took over as CEO from Tim Cook in September. The company is dealing with a global memory crunch and a competitive scramble for computer components. Memory costs were higher this quarter than in the June period, according to company statements. Ternus told CNBC’s MacKenzie Sigalos that Apple had just capped off its best fiscal year ever, with growth coming in spite of supply constraints and foreign exchange headwinds.

What we’re seeing with memory pricing right now is unprecedented, Ternus told a conference call on Monday, predicting that memory costs in the fourth quarter would be even higher than in the previous three months, The Guardian reported. The tech industry has faced months of high demand for memory chips from AI datacentres, driving up prices. Ternus mentioned that the firm’s adjustments earlier in the year—specifically raising MacBook and iPad prices in June and subsequently increasing iPhone prices in September—acted as a partial cushion for the enterprise.

Analyst Reactions to Margins and Revenue Growth

The concern is profitability, said Violeta Todorova, senior research analyst at Leverage Shares. Management pointed to memory as the main pressure, together with the cost of rolling out Siri AI. Memory shortages are also expected to limit Mac and iPad supply, as demand has run ahead of plans. Todorova added that while Apple shares have risen 25% in 2026 ahead of other big tech names, that premium leaves little room for disappointment.

As noted by The Motley Fool, Apple announced a fiscal fourth-quarter revenue figure of $114.5 billion that surpassed Wall Street projections, alongside earnings per share of $2.10 that likewise beat expectations. Strong demand for the latest iPhone helped drive the results, with iPhone revenue increasing approximately 17% year over year to $57.6 billion. Driven by escalating component expenses and diminished returns from tariff refunds, Apple saw its gross margin contract from 50.1% in the prior period down to 47.9%. Sales in China and the iPad business also missed expectations.

More on this story: Alphabet Shares Drop 9% After Missing Wall Street Revenue Expectations · Apple Reports First Earnings Under CEO John Ternus

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