GoKawiilApple beats Q4 estimates but shares slip on services growth, margin guidance
Apple reported fiscal Q4 revenue of $114.48 billion, up 12% year over year and above the $113.39 billion analysts expected, with EPS of $2.10 versus the $1.99 forecast. Despite the beat, shares fell roughly 3% in after-hours trading after management's guidance pointed to slower services revenue growth and gross margin pressure from elevated memory costs. Apple also repurchased $24 billion of stock during the quarter, bringing buybacks to $86 billion over the past 12 months.
GoKawiil's interpretation of the reporting above, not reported fact.
Apple shares had risen 25% year to date and traded at over 35 times forward earnings, a valuation the analyst says required a flawless quarter to avoid a pullback, which helps explain the after-hours drop despite the headline beat. The company's strong free cash flow and buyback capacity continue to set it apart from AI-focused hyperscalers that are spending heavily on data center investment, which could support investor confidence even amid near-term guidance concerns.
- Fiscal Q4 revenue rose 12% to $114.48 billion, beating LSEG estimates of $113.39 billion.
- EPS of $2.10 topped the $1.99 estimate, but shares fell about 3% after-hours on soft services and margin guidance.
- Apple bought back $24 billion in stock this quarter and $86 billion over the past year, reflecting strong free cash flow generation.
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Published there as: “Apple's quarter is not perfect. But with enough to like, we raised our price target”
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