Apple Shares Slip 2% Despite Record Fourth-Quarter Revenue and Earnings Beat

Apple shares retreated approximately 2% following its fiscal fourth-quarter results, despite posting top- and bottom-line beats. The company reported revenue of $114.4 billion to $114.47 billion and earnings of $2.05 to $2.10 per share, topping analyst forecasts. Growth was powered by iPhone revenue reaching roughly $57.6 billion, record Mac sales of $10.79 billion, and Services revenue of $31.57 billion. Full-year free cash flow expanded 38% to $136 billion. However, management warned of upcoming margin pressures stemming from rising memory and artificial intelligence expenses during the first report under CEO John Ternus.