Apple Falls 4% in After-Hours Trading, Strong Q4 Beat Overshadowed by China Weakness and Rising Costs

Market Focus
3 hours ago

On November 3, Apple fell over 4% in After-Hours Trading. The move followed a mixed fiscal fourth-quarter report: revenue and EPS beat expectations, but China sales missed, services growth slowed, and operating expenses rose sharply during the earnings call.

Apple reported Q4 revenue of $114.5 billion versus expectations near $113.4 billion, net profit of $30.7 billion, and EPS of $2.10 versus the $1.98 consensus. iPhone revenue reached $57.58 billion, above expectations, while Mac was also highlighted as strong. However, iPad revenue was $6.23 billion, below consensus, services revenue was merely in line, and management said Greater China underperformed expectations.

During the call, management said first-quarter revenue is expected to grow 7% to 10% with gross margin of 45% to 46%, but also noted operating expenses climbed 21% due to higher R&D investment. Reported Q4 EPS also included a $0.05 benefit from tariff refunds, and gross margin included about a 1 percentage point benefit, which likely tempered the market reaction despite the top-line and EPS beat.

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