Apple stock dips despite record Q3 revenue and AI controls update
Apple Inc. (ISIN US0378331005) closed at USD 332.89 on the Nasdaq on October 5, 2026, down 0.24 percent from the previous day. Investors are balancing the company’s record fiscal third-quarter revenue against concerns over tightening margins and a leadership transition.
On October 2, Apple announced plans to add clearer warnings and extra controls when AI agents request broad access to Mac files, addressing worries about potential overreach of AI tools through the Mac Full Disk Access setting.
The fiscal third quarter, which ended on June 27, 2026, saw revenue hit USD 109.4 billion, a 16 percent year-over-year increase. Diluted earnings per share (EPS) rose 29 percent to USD 2.02, surpassing the USD 1.89 consensus estimate by USD 0.13. iPhone revenue grew 22 percent to USD 54.3 billion, Mac revenue increased 29 percent to USD 10.4 billion, and Services revenue reached USD 30.74 billion, up 12 percent.
Analysts maintain a Moderate Buy consensus, with an average target price of USD 340.02, placing it 2.1 percent above the current stock price. However, Morgan Stanley lowered its target from USD 360 to USD 355 while keeping an Overweight rating, citing strong product cycles but noting memory costs and softer iPhone pricing as limitations on future earnings growth.
As of October 5, 2026, Apple stock remains 3.6 percent below its 52-week high of USD 345.34, with a market capitalization of USD 4.9 trillion.