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Apple Earnings: Guidance to Dictate Stock Reaction
2 Nov
Summary
- Apple stock trades near 52-week low, up 24% year-to-date.
- Services growth expected to slow to its slowest pace in years.
- December guidance and gross margin quality are key watch items.
Apple Inc. (AAPL) is scheduled to release its earnings report today, November 2, 2026, after the market closes, with the conference call set for 5 PM ET. The stock is currently trading at $338.14, down 1.88% for the day, and remains about 4% below its 52-week high. Analysts anticipate revenue to reach $113.38B and EPS to be $1.99, with the stock trading at a forward P/E of 38.6x.
While Apple has a history of beating EPS estimates, its stock reactions have been mixed, suggesting that guidance, rather than the beat itself, is the crucial factor. Investors will closely monitor the December quarter guidance, which has consensus estimates of $151.96B in revenue and $2.90 EPS. The quality of gross margins is also a focus, especially after July's results included tariff refunds. Component inventory levels and memory costs are additional watch items for the company's new CEO.
The launch of the new $1,999 foldable iPhone on October 23, 2026, presents a potential upside, with strong demand and limited supply potentially boosting holiday quarter sales. However, concerns linger about slowing Services growth, which is expected to be its slowest pace in over three years. The company's fair value upside is estimated at -20.8%, indicating limited room for error amid a 38.6x forward P/E ratio.
