Apple revenue rises 12% to $114.5 billion but warns of memory squeeze; Palantir sales jump 96% to $2.31 billion
Apple beat forecasts with $114.5bn in revenue and iPhone sales up 17.5%, but guided margins lower on memory costs. Palantir grew 96% and raised its 2026 outlook.
At a glance
- Apple's July–September revenue rose 12% to $114.5 billion, with earnings of $2.10 a share against forecasts of $1.99. iPhone revenue reached $57.6 billion.
- Apple expects December-quarter revenue to grow 7–10%, but sees gross margin falling to 45–46% from 50.1% and warned of memory-chip shortages for Macs and iPads.
- Palantir's third-quarter revenue rose 96% to $2.31 billion, above the $2.18 billion expected; US commercial sales grew 148% to $984 million.
- Palantir raised its 2026 revenue forecast to about $8.53 billion, roughly 91% growth, and guided $2.64–2.65 billion for the fourth quarter.
Apple's revenue rose 12% to $114.5 billion in the July–September quarter, beating forecasts on the back of strong iPhone sales, but the company told investors on Monday, November 2, that rising memory-chip costs will cut its profit margin sharply over the holidays. Palantir, reporting the same evening, said its revenue almost doubled to $2.31 billion and raised its forecast for the year again.
Both companies beat Wall Street's estimates. Neither got a clean welcome: Apple's shares slipped in after-hours trading on the margin warning, and Palantir's swung between small gains and losses as investors weighed a lofty valuation against the growth.
Apple: a record iPhone quarter with only eight days of the new Pro
Apple earned $2.10 a share in its fiscal fourth quarter, against analysts' average forecast of $1.99. Revenue of $114.48 billion compared with expectations of about $113.4 billion.
The iPhone did the heavy lifting. Sales of the phone reached $57.58 billion, about 17.5% more than a year earlier, even though the quarter included only eight days of iPhone 18 Pro sales. Greater China grew 21% to $17.53 billion, helped by iPhone and Mac demand, although some analysts had hoped for more.
It was the first earnings call led by chief executive John Ternus.
| Apple, fiscal Q4 2026 | Result | Forecast / comparison |
|---|---|---|
| Revenue | $114.48bn (+12%) | about $113.4bn expected |
| Earnings per share | $2.10 | $1.99 expected |
| iPhone revenue | $57.58bn (about +17.5%) | — |
| Greater China revenue | $17.53bn (+21%) | — |
| Gross margin | 50.1% | — |
| December-quarter outlook | revenue +7% to +10% | services +8% to +9% |
| December-quarter gross margin | 45% to 46% | down from 50.1% |
Why Apple's margin is about to fall
The guidance was the part that moved the stock. Apple expects revenue to grow 7% to 10% in the October–December quarter, its biggest of the year. But it sees gross margin dropping to between 45% and 46%, four to five points below the quarter just ended.
The reason is memory. Demand from artificial-intelligence data centres has pushed up the price of the DRAM and flash chips that go into phones, Macs and iPads, and suppliers are struggling to keep up. Apple said supply of Macs and iPads would be constrained in the December quarter, mainly because of memory. It gave no outlook beyond December.
For buyers, that means some Mac and iPad models may be harder to find over the holiday season. It also raises the question of whether Apple will pass higher component costs on in prices next year, in the US and in import-heavy markets such as Pakistan and India, where devices already cost more after duties.
Palantir: commercial sales overtake government in the US
Palantir's third-quarter revenue rose 96% from a year earlier and 20% from the previous quarter, to $2.313 billion. Analysts had expected about $2.18 billion. Adjusted earnings were 44 cents a share, against forecasts of 41 cents.
The milestone the company stressed was in its home market. US commercial revenue grew 148% to $984 million, and for the first time it was larger than Palantir's revenue from the US government. Total government revenue, including other countries, passed $1 billion in a quarter for the first time, at $1.146 billion.
Chief executive Alex Karp called the results "extraordinary" and said the word understated them.
| Palantir, Q3 2026 | Result | Forecast / previous |
|---|---|---|
| Revenue | $2.313bn (+96%) | about $2.18bn expected |
| Adjusted EPS | $0.44 | $0.41 expected |
| US commercial revenue | $984m (+148%) | — |
| Government revenue | $1.146bn | first quarter above $1bn |
| Q4 revenue outlook | $2.64bn to $2.65bn | — |
| Full-year 2026 revenue outlook | $8.530bn to $8.534bn (about +91%) | about $8.15bn before |
| 2026 US commercial growth outlook | at least 143% | raised |
What investors are watching
Palantir's growth is driven by companies buying its AI platform to automate work in factories, hospitals, banks and supply chains. The shares have climbed so far that even a strong beat is not always enough to lift them, which is what Monday's muted reaction showed.
For Apple, the question is how much of the memory squeeze is temporary. Japanese memory maker Kioxia warned about chip prices on Monday, a sign that the squeeze on device makers is not limited to Apple.
What comes next
AMD reports on Tuesday after the US close, followed by Qualcomm later in the week, which will give a wider read on chip supply and AI demand. Apple's next results, for the holiday quarter, are due at the end of January. Palantir reports its fourth quarter in early February.
Questions people are asking
Did Apple beat earnings expectations in its fiscal fourth quarter of 2026?
Yes. Apple reported revenue of $114.5 billion, up 12%, and earnings of $2.10 a share, ahead of forecasts of about $113.4 billion and $1.99. Shares still slipped after hours because of a weaker margin outlook.
How much did Palantir's revenue grow in Q3 2026?
Palantir's revenue grew 96% from a year earlier to $2.313 billion. The company raised its full-year 2026 forecast to between $8.530 billion and $8.534 billion.
