Why is Apple stock sliding today?

Apple stock is sliding 4.7% in pre-open trading to reach $322.44, extending a sharp after-hours selloff triggered by the company’s fiscal fourth-quarter 2026 earnings call on Monday evening, where a headline beat on both revenue and profit was quickly overshadowed by a disappointing forward margin outlook.

Apple reported Q4 revenue of $114.48 billion and earnings per share of $2.10, topping Wall Street estimates of $113.38 billion and $1.99 respectively, but management’s guidance for the all-important December holiday quarter rattled investors: gross margins are expected to compress to 45%–46%, down meaningfully from the 47.9% recorded in the September quarter, as soaring memory-chip costs — driven by fierce competition for components from AI infrastructure builders — eat into profitability.

Several secondary pressures compounded the negative reaction. Services revenue growth decelerated to 9.8% year-over-year, its slowest pace in roughly three years and below analyst expectations, while Greater China revenue of approximately $17.5 billion missed consensus estimates by more than $1 billion.

CFO Kevan Parekh also disclosed that operating expenses are expected to grow between 11% and 13% year-over-year in the December quarter, driven by accelerating AI research and development spending. Adding to investor unease, a one-time tariff refund of approximately $0.05 per share flattered the headline EPS figure, meaning underlying earnings growth was softer than the beat implied.

The results also marked the debut earnings call for new CEO John Ternus, who took the helm in September.

The broader market backdrop offered Apple little relief. The S&P 500 and Dow Jones are both modestly in the red in pre-market, while the Nasdaq is only marginally positive, underscoring that Apple’s decline is a company-specific reaction rather than a broad market event.

Investors are also keeping one eye on Friday’s October nonfarm payrolls report, which could influence the Federal Reserve’s December interest-rate decision and overall risk appetite heading into year-end.

Taken together, the combination of a margin warning heading into the critical holiday season, slowing Services momentum, a China revenue miss, and elevated AI-related cost commitments proved too much for a stock that had already been trading near its 52-week high of $351.73 at a demanding valuation.

The sell-the-news dynamic that has historically followed Apple earnings calls played out in full, with today’s pre-market price of $322.44 sitting well above the 52-week low of $243.42 but reflecting a meaningful reset in near-term profit expectations.