Apple shares dropped 4.5% in premarket trading following its latest earnings report. Investors reacted to a weaker gross margin outlook and slowing growth in services revenue.
Analysts pointed to the margin guidance as a key concern. The forecast fell short of what many had expected for the coming quarter.
Services revenue continued to grow but at a slower pace than in prior periods. That segment has been a major driver of Apple’s earnings in recent years.
Some analysts noted that hardware sales remained steady despite broader market pressure. The company’s core product lines showed resilience in the report.
Concerns about consumer spending also weighed on sentiment. Analysts suggested that cautious buyers may delay device upgrades in the near term.
Several firms adjusted their price targets after the report. Most maintained positive long-term ratings while acknowledging near-term headwinds.
The stock move reflects heightened expectations around Apple’s ability to sustain growth. Analysts will watch upcoming quarters for signs of a rebound in services and margin performance.
