Apple shares fall 4% after revenue beats estimates
In short
Apple shares fell 4% after the company reported quarterly revenue of $114.5 billion, up 12%, and earnings that beat estimates. Strong iPhone, Mac and services sales were not enough to keep the stock up.
Investors focused on a weaker gross-margin outlook and slower expected services growth. The report does not give the full guidance or say how Apple plans to address it.
What the reporting says
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 an expected slowdown in services growth. The report does not state the exact guidance details or what management said beyond the market reaction, so the next move for the iPhone maker remains unclear.
Why it matters
Apple shares dropped 4% after the company reported quarterly revenue of $114.5 billion, up 12%, and earnings that beat estimates. The market reaction was negative because the stronger results were offset by a weaker gross-margin outlook and expected slowdown in services growth. The summary does not provide full guidance details or additional management commentary, so the longer-term impact on the stock is still uncertain.