Apple beat analysts' expectations with record revenue for the July–September quarter, driven by iPhone and services sales, but higher AI-related costs will weigh on margins. CEO John Ternus, who succeeded Tim Cook in September, said the company is closing the year with its most ambitious lineup and hinted at a strong holiday season, including the foldable Duo. CFO Kevan Parekh guided gross margin to 45% to 46%, down from 47.9% in the September quarter, citing higher memory costs and costs tied to ramping Siri AI, which uses Google's Gemini model. Analysts had expected Apple to spend about $11 billion over the 12 months to September, a fraction of the more than $700 billion that Microsoft, Alphabet, Amazon and Meta are on track to spend this year. Parekh said AI gives customers a compelling reason to upgrade.
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AAPLearningsartificial intelligenceAI investment
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Related tickers and likely impact
AAPL
• NeutralApple Inc.
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 11/02/2026 | 338.32 |
| Change that session | -1.83% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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