Apple's new CEO faces earnings test as rising chip costs cloud outlook

Published on 2 November 2026 - 12:38 GMT+1

Apple's quarterly results are due on Monday evening in Europe, its first report since new CEO John Ternus took over from Tim Cook in September.

Investors will closely watch his comments on new products, prices and AI, alongside the company's outlook for the crucial Christmas quarter.

Analysts expect revenue to have risen nearly 11% to $113.39 billion (€101.5bn) and net profit to have increased about 6% to $29.04 billion (€26bn), according to LSEG estimates reported by Reuters.

iPhone revenue is forecast to rise about 15% to $56.54 billion (€50.6bn), slowing from growth of about 22% in the previous three months. Services revenue is expected to grow almost 10% to $31.56 billion (€28.2bn), its slowest pace in more than three years.

"It's trick or treat time for new CEO John Ternus who has an opportunity to put his stamp on Apple's AI strategy and future direction," AJ Bell analysts Russ Mould, Danni Hewson and Dan Coatsworth said.

Much of the attention will be on demand for the company's new foldable phone, the iPhone Duo, which went on sale on 23 October, after the period covered by Monday's results. Its sales will therefore contribute to the Christmas quarter as the device starts at $1,999 (€1,789) in the US, according to Apple.

"With only nine days of iPhone 18 Pro sales and no iPhone Duo revenue in the quarter, the market reaction is likely to be driven by Christmas guidance," AJ Bell analysts said.

Investors will also want an update on how the Duo is selling after some buyers reported cracks and lines along the inner display's central fold, prompting Apple to offer replacements.

Another key question is how Apple is handling rising memory-chip costs and whether further price increases are ahead.

Cook warned in June that Apple could no longer absorb the increases and would have to raise some product prices. TechInsights estimated at the time that memory and storage components in the iPhone 18 Pro could cost Apple about $196 (€175), up from roughly $52 (€47) in the iPhone 17 Pro, greatly affecting profit margins.

Ternus' remarks on how Apple embraces AI could also shed light on the future of its services business, where slowing growth has worried investors after years of rapid expansion.

Meanwhile, Apple's relatively restrained AI spending contrasts with its rivals’ heavy investment in infrastructure.

The results come after Apple reclaimed its position as the world’s most valuable publicly traded company on Friday, overtaking Nvidia with a market capitalisation of $5.03 trillion (€4.5tn).

"With the shares trading close to all-time highs, Apple's premium valuation means investors will be looking for more than Apple's customary earnings beat," the AJ Bell analysts said.