Apple and Palantir shares declined in premarket trading on Tuesday following earnings announcements released after the bell on Monday [1]. Apple shares fell 4.4% while Palantir dropped 6% in premarket trading [1].
Apple's earnings report, the first under new CEO John Ternus who took over from Tim Cook in September, presented mixed results [1]. The company reported better-than-expected revenue in its fourth-quarter earnings but fell short on iPad sales estimates and issued a margin forecast that disappointed investors [1]. The iPhone maker is contending with a global memory crunch and supply chain pressures, with memory costs higher in the recent quarter compared to June, according to management [1]. Despite these headwinds, Ternus stated that Apple had just completed its "best fiscal year ever" and attributed growth to performance despite supply constraints and foreign exchange challenges [1].
Analysts attribute the market disappointment to profitability concerns. According to Violeta Todorova, senior research analyst at Leverage Shares, "The concern is profitability. Management pointed to memory as the main pressure, together with the cost of rolling out Siri AI. Memory shortages are also expected to limit Mac and iPad supply, as demand has run ahead of plans" [1]. Todorova noted that Apple shares have risen 25% in 2026, ahead of other major tech names, but this premium valuation leaves "little room for disappointment" [1].
In contrast, Palantir beat Wall Street's third-quarter estimates, with U.S. commercial revenue topping government revenue for the first time [1], though the article provides limited detail on Palantir's specific financial metrics or the reasons for its 6% premarket decline.
CONCLUSION
Apple's disappointing earnings guidance and margin concerns, driven by elevated memory costs and supply chain pressures, triggered a significant 4.4% premarket decline despite beating revenue expectations. While Palantir exceeded estimates with strong commercial revenue growth, both stocks declined in premarket trading, suggesting broader market caution toward technology earnings amid cost pressures and valuation concerns.