Apple shares drop 7% as forecast falls short of expectations

Apple Inc. shares fell sharply in premarket trading on Friday, July 31, 2026, despite the company reporting record-breaking revenue and profit for its fiscal third quarter. The sell-off, which saw the stock drop more than 7%, was driven by a weaker-than-expected financial forecast for the current quarter, as executives warned that supply chain constraints would limit growth.

For the June quarter, Apple reported revenue of $109.42 billion, a 16% year-over-year increase, and net income of $29.79 billion. Earnings per share of $2.02 exceeded analyst expectations. The performance was led by exceptionally strong iPhone sales, which surged nearly 22% to $54.25 billion, accounting for nearly half of the company's total quarterly revenue. Mac revenue also grew strongly, rising nearly 29% to $10.35 billion.

However, the company's outlook for the September quarter overshadowed these results. Apple forecast revenue growth of 9% to 11%, below Wall Street expectations of roughly 12%, and projected gross profit margins that also missed analyst estimates. Chief Executive Tim Cook attributed the softer guidance to supply constraints, not weak demand, specifically citing shortages of advanced...