Apple and Palantir Shares Drop in Premarket After Mixed Earnings Reports

Apple and Palantir shares fell in premarket trading Tuesday following earnings reports released Monday evening. Apple traded down approximately 4%, while Palantir declined by 6.5%.

The iPhone maker beat revenue expectations for the fourth quarter but missed estimates on iPad sales. The company issued a margin forecast that disappointed investors. This was the first earnings report since John Ternus assumed the role of CEO from Tim Cook in September. Apple stated that memory costs were higher this quarter compared to the June period. Ternus told CNBC that growth was achieved despite supply constraints and foreign exchange headwinds. He noted that the company had just capped off its best fiscal year ever.

Violeta Todorova, a senior research analyst at Leverage Shares, identified profitability as the primary concern. She pointed to memory and the cost of rolling out Siri AI as main pressures. Todorova added that memory shortages are expected to limit Mac and iPad supply because demand has run ahead of plans. Apple shares have risen 25% in 2026, a premium that Todorova said leaves little room for disappointment.

Palantir beat Wall Street estimates for the third quarter. U.S. commercial revenue topped government revenue for the first time. Revenue nearly doubled from a year ago and exceeded $2 billion for the first time. However, William Blair noted in a Tuesday memo that growth in U.S. commercial total contract value bookings has slowed. A Piper Sandler note from Monday stated that investors will look for evidence that the 11% growth in U.S. commercial TCV bookings is not a fluke. The firm believes demand for Palantir solutions still outstrips supply.

The market will assess whether Apple can maintain margins amid the global memory crunch. Palantir investors will watch for signs that commercial growth is sustainable. Both companies face scrutiny on their ability to translate revenue gains into consistent profit.