Apple is set to report its fiscal fourth-quarter and full-year results on November 2, 2026, with investors closely watching how the company navigates rising memory costs and slowing iPhone sales growth. The tech giant recently hit a $5 trillion market cap, showcasing its dominance and resilience. However, management has warned of a lower gross margin and deceleration in iPhone sales due to soaring memory prices, which have been described as a "100-year flood on the memory pricing" by former CEO Tim Cook.
The company's latest product, the iPhone Duo, sold out on its launch day, with orders now backed up into January. Despite strong demand, Apple is investing in Apple Intelligence, its AI initiative, which includes a new Siri voice assistant and a home assistant called Apple Home. The company's strength lies in its hardware and seamless integration across devices, which has helped it maintain a loyal customer base.
Wall Street expects Apple to report 10.6% sales growth for the quarter and $1.98 in earnings per share, up from $1.85 last year. However, Apple stock is trading at nearly 40 times trailing 12-month earnings, leaving little room for error. New CEO John Ternus will be in the spotlight for the first time, and the market will be looking for updates on how the business is managing through inflation and high memory costs.
Before investing in Apple, consider that The Motley Fool Stock Advisor analyst team did not include Apple in its list of the 10 best stocks to buy now. The team's past recommendations, such as Netflix and Nvidia, have yielded significant returns, with an average return of 897% compared to 213% for the S&P 500.