Tech Earnings: Apple and Palantir Shares Drop on Margin and Growth Concerns

Apple shares fell by roughly 4% in premarket trading on Tuesday, a decline that followed a mixed earnings report released after the bell on Monday. The company posted revenue that exceeded expectations for its fourth quarter, yet iPad sales missed analyst targets. A margin forecast that disappointed investors contributed to the premarket slide.

This marks the first earnings report issued since John Ternus assumed the role of CEO from Tim Cook in September. Ternus stated that the company concluded its best fiscal year ever, a result achieved despite a global memory crunch and a scramble for computer components. He noted to CNBC's MacKenzie Sigalos that memory costs were higher in the current quarter than in the June period, and that growth occurred despite supply constraints and foreign exchange headwinds.

Violeta Todorova, a senior research analyst at Leverage Shares, identified profitability as the primary concern for investors. She pointed to management's comments regarding memory as the main pressure, alongside the cost of rolling out Siri AI. Todorova added that memory shortages are expected to limit Mac and iPad supply because demand has run ahead of plans. She observed that Apple shares have risen 25% in 2026, a premium that leaves little room for disappointment among shareholders.

Palantir shares dropped 6.5% in premarket trading following its own earnings release. The company beat Wall Street estimates for the third quarter, with U.S. commercial revenue surpassing government revenue for the first time. Total revenue nearly doubled from a year earlier and exceeded $2 billion for the first time in the company's history.

Despite the record revenue, William Blair noted in a Tuesday report that there was a slowdown in U.S. commercial total contract value, or TCV, bookings growth. A Piper Sandler note from Monday suggested that investors would look for evidence in subsequent quarters that the 11% growth in U.S. commercial TCV bookings is not a temporary fluke. The analysts at Piper Sandler believe the growth is structural and that demand for Palantir's solutions still outstrips supply.

Both companies announced their financial results after the market close on Monday, setting the tone for Tuesday's premarket session. The performance of these two major technology stocks drew immediate attention from traders and analysts assessing the current state of the sector.