Tech earnings season has been brutal. Can Apple turn things around today?
Autumn’s tech earnings season hasn’t been a good one for investors so far. A few outliers aside (looking at you, Microsoft ), Wall Street has reacted pretty negatively to the financial results from major tech players in the past week. One big thing that’s upsetting investors is the negative free cash flow from giants like Google and Amazon, driven largely by capital expenditures on AI data…
The tech earnings season has been rough for investors lately, with major players like Google, Amazon, Reddit, and Intel experiencing negative financial results due to capital expenditures on AI data centers and the impact of AI on stock prices. Now, it's Apple's turn to report its latest quarterly results.
Apple's Q4, which ended on September 30, marks the first time the new CEO, John Ternus, has overseen the results. This year, Apple only announced the iPhone 18 Pro and iPhone 18 Pro Max during the quarter, saving its updated iPhone 18 and iPhone Air 2 for Q3 next year. Investors will be closely monitoring Ternus and CFO Kevan Parekh for any insights on how the staggered iPhone release schedule affected iPhone sales, as well as any hints regarding the sales of Apple's foldable device, iPhone Duo.
Unlike its peers, Apple has avoided heavy investments in AI data centers, which has helped shield it from the negative free cash flows caused by AI spending at competitors like Google and Amazon. However, AI-related costs, primarily through higher memory prices, are still impacting Apple. Investors will be eager to hear Apple's guidance for Q1 2027, which will include holiday sales, a typically strong period for the company.
Meeting or exceeding Wall Street's expectations of $113.46 billion in total revenue and $2.00 in earnings per share could boost investor confidence and send the stock up after hours.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
