Apple reports earnings Monday as tech stocks stabilize

The technology sector absorbed its worst month in over a year before finding early footing on Monday.

Apple Inc. releases its fourth-quarter financial results later today, providing a key data point for a market still adjusting to recent volatility. Analysts forecast the company will report revenue of $113 billion, an increase of nearly 11% from the same period last year. Net profit is expected to climb approximately 6% to reach $29 billion. These projections reflect a business model that has stayed distinct from the heavy spending cycles of cloud giants.

iPhone sales are projected to account for $56.5 billion of that total, representing a 15% year-over-year increase. This growth rate is slower than the 22% surge seen in the prior three months. The slower pace results from the fact that the new iPhone 18 Pro models have been on the market for only nine days. The company’s first foldable device, the iPhone Duo, launched on October 23, further limiting the sales window for new hardware.

Attention turns to management’s guidance for the holiday quarter. Investors are monitoring how rising chip costs impact profit margins. Apple’s core business relies heavily on high-margin product sales, making input cost increases a central concern for the coming year. The company has largely avoided the infrastructure spending frenzy that drove valuations for other tech firms.

The broader market context remains tense. The Nasdaq 100 posted its steepest monthly decline in more than a year, driven in part by a 30% drop in Intel stock following a weak earnings report. The S&P 500 technology index also recorded its worst month since early 2025. Communication sector indices saw their largest monthly drop in four years. Nasdaq futures rebounded by just under 1% in early Monday trading.

External pressures contributed to the sector’s retreat. Concerns over the cost of capital and stress in high-risk credit markets weighed on investor sentiment. A $6.3 billion hack of the Binance cryptocurrency exchange late last week added to the uncertainty. The exchange claimed to have covered most of the stolen funds by Sunday, though customer withdrawals have increased.

Macro factors also play a role in this week’s trading. The US Department of Labor will release October employment data, expected to show a rebound after a weak prior month. The Bank of England is set to raise interest rates. Bond markets have reacted more to equity declines than to oil prices, which slipped to about $109 as mediation efforts regarding Iran continued. Federal Reserve officials indicated late last week that another rate increase is likely by the end of the year.