Shares of Apple (AAPL) and Palantir Technologies (PLTR) dipped on Tuesday despite both companies reporting strong quarterly earnings on Monday evening. Apple's fiscal fourth-quarter results set new records, with adjusted earnings rising nearly 11% year over year to $2.05 per share, excluding a favorable $0.05 impact from tariff refunds. Revenue for the quarter increased 12% to $114.47 billion, driven by a 17% jump in iPhone revenue and a 10% rise in Services revenue. For the full fiscal year 2026, Apple generated $478.83 billion in revenue, up 15% year over year, with annual earnings per share climbing 18% to $8.82, excluding tariff refunds.
Palantir Technologies also delivered impressive results, with quarterly revenue soaring 96% year over year to $2.31 billion and adjusted earnings reaching $0.44 per share. The company's U.S. commercial revenue surged 148% to $984 million, reflecting accelerating demand for its Artificial Intelligence Platform (AIP). Palantir raised its fiscal 2026 revenue guidance to $8.53 billion, representing 91% growth, and expects fourth-quarter revenue of $2.65 billion.
Despite their pullbacks, both stocks present different investment profiles. Apple's shares are up more than 20% year-to-date, while Palantir is down 2%. Over the last three years, Palantir has vastly outperformed broader indexes with gains of over 800%, compared to Apple's 84% return. Apple's free cash flow rose 38% to $136 billion, while Palantir generated $1.22 billion in adjusted free cash flow during the third quarter, with a robust 53% margin.
Valuation differences are notable, with Palantir trading near 100X forward earnings and 37X forward sales, compared to Apple's 35X forward P/E and 9X forward P/S multiples. While Palantir's extraordinary growth may justify a premium, Apple's established profitability and larger cash flows offer a more balanced risk-reward profile. Both stocks currently hold a Zacks Rank #3 (Hold), suggesting caution before aggressively buying either post-earnings.