Apple and Palantir shares drop after earnings

Apple and Palantir shares declined in premarket trading on Tuesday following earnings releases issued after the market closed on Monday. Apple dropped approximately 4%, while Palantir fell 6.5%.

Apple reported fourth-quarter revenue that exceeded expectations, marking the first earnings report since John Ternus assumed the CEO role from Tim Cook in September. However, iPad sales missed analyst estimates, and the company issued a margin forecast that disappointed investors. The statement noted that memory costs rose this quarter compared to the June period. Ternus told CNBC's MacKenzie Sigalos that the company achieved its best fiscal year ever despite supply constraints and foreign exchange headwinds.

Violeta Todorova, senior research analyst at Leverage Shares, identified profitability as the primary concern for investors. She noted that management pointed to memory costs and the rollout of Siri AI as the main pressures on margins. Todorova added that memory shortages are expected to limit Mac and iPad supply because demand has outpaced production plans. Apple shares have risen 25% in 2026, outperforming other large technology firms. This performance left little room for disappointment, according to Todorova.

Palantir revealed that its revenue nearly doubled year over year, surpassing $2 billion for the first time. The company also reported that U.S. commercial revenue exceeded government revenue for the first time. Despite these milestones, William Blair noted a slowdown in growth for U.S. commercial total contract value bookings in a Tuesday note. A Piper Sandler note from Monday questioned whether the 11% growth in U.S. commercial TCV bookings is a temporary anomaly or a structural shift. The analysts at Piper Sandler believe the growth is temporary and that demand for Palantir's solutions continues to outstrip supply.