At a glance
- The stock fell as much as 4% after guidance pointed to slower services growth and falling gross margins, InvestmentNews reported.
- Services revenue was $31.6 billion, up about 10% from $28.8 billion a year earlier.
- Advisors who hold Apple as a core position now weigh a services growth rate of about 10% against the installed-base argument, with management projecting further slowing and lower gross margins.
Apple's September-quarter revenue rose 12% to $114.5 billion, and earnings per share rose 14% to $2.10. The stock fell as much as 4% after guidance pointed to slower services growth and falling gross margins, InvestmentNews reported.
Services revenue was $31.6 billion, up about 10% from $28.8 billion a year earlier. Full-year services revenue was $123.3 billion, compared with $109.2 billion in fiscal 2025. Full-year revenue reached $479 billion. OpenAI began redirecting potential ChatGPT subscribers to pay on its own website, bypassing Apple's App Store cut, and courts and regulators worldwide have limited Apple's ability to collect developer fees for App Store distribution.
Advisors who hold Apple as a core position now weigh a services growth rate of about 10% against the installed-base argument, with management projecting further slowing and lower gross margins. David Wagner, head of equity at Aptus Capital Advisors, told InvestmentNews the stock had been "the defensive play in big tech this year," up 24% "without needing to win an AI arms race," and that services "keeps getting stickier as the installed base grows."
Services grew 10%, slower than the rest of Apple
Apple's September-quarter revenue, EPS and services revenue, with growth vs a year earlier
Reported by the Products & portfolios desk from InvestmentNews. Published . Corrections