Market Notes: What Apple's, AMD's and Palantir's Earnings Told Long-Term Investors

Three widely followed companies reported last week: a consumer-hardware maker, a chip designer and a data-analytics software company. Their reports are a useful lesson in reading results alongside costs, adjustments and guidance. None of this is a recommendation (see the disclosures below).

What did Apple report?

Apple (Nasdaq: AAPL) reported its fiscal fourth quarter on Monday, November 2. Revenue was $114.5 billion, up 12%; gross margin was 47.9%, including a benefit of about one percentage point from tariff refunds; and diluted EPS was $2.10, up 14%, including $0.05 from those refunds (Apple Form 8-K, Exhibit 99.1).

On the call, management put iPhone revenue at $57.6 billion (up 17%), Services at $31.6 billion (up 10%) and Mac at $10.8 billion (up 24%). iPad revenue fell 10% to $6.2 billion, and Wearables, Home and Accessories fell 8% to $8.3 billion. Operating expenses rose 21% to $19.2 billion. CFO Kevan Parekh guided December-quarter revenue growth of 7% to 10%, which he described as reflecting constrained supply, and gross margin of 45% to 46%, citing higher memory costs and Siri AI ramp costs. CEO John Ternus said, "What we're seeing with memory pricing right now is unprecedented."

Reuters reported that Apple shares fell about 4% in early trading on Tuesday, with the memory-cost commentary the focus.

What did AMD report?

Advanced Micro Devices (Nasdaq: AMD) reported on Tuesday, November 3. Revenue was $13.4 billion, up 45%. GAAP diluted EPS was $1.46 and non-GAAP diluted EPS was $2.09; the gap includes a $1.1 billion non-cash charge tied to the fair value of warrants issued to customers. Data Center revenue was $8.5 billion, up 97%, while Client and Gaming revenue fell 8% to $3.7 billion and Gaming alone fell 40% to $773 million. AMD guided fourth-quarter revenue of about $17 billion, plus or minus 3%, and non-GAAP gross margin of about 55% (AMD Form 8-K, Exhibit 99.1).

On the call, CEO Lisa Su said, "The third quarter was the largest and most profitable in our history." Management said it expects Data Center growth to accelerate in the fourth quarter. CFO Jean Hu said free cash flow was $554 million, reflecting working-capital and capacity investment, and that inventory rose about $3 billion to $11.5 billion. Su also said PC sell-through slowed late in the quarter as higher memory and component costs weighed on demand, and that AMD is planning for a double-digit-percentage decline in 2027 PC unit shipments.

What did Palantir report?

Palantir (Nasdaq: PLTR) reported on Monday, November 2. Revenue was $2.313 billion, up 96%. U.S. commercial revenue was $984 million, up 148%, and passed U.S. government revenue ($953 million) for the first time. GAAP income from operations was $1.085 billion, a 47% margin, and GAAP EPS was $0.44. Total contract value closed was $2.918 billion, up 6% year over year. The company raised its full-year revenue guidance to $8.530 billion to $8.534 billion and guided fourth-quarter revenue of $2.649 billion to $2.653 billion (Palantir Form 8-K, Exhibit 99.1).

On the call, CFO David Glazer said the company signed multiple eight-figure deals in the quarter that were shorter in duration than usual, and said it expects contract duration and size to increase over time. International commercial revenue rose 21% year over year but only 1% from the prior quarter, to $184 million.

What can long-term investors take from these reports?

First, strong headlines can sit beside rising costs: Apple's margin guidance and AMD's PC outlook both pointed to memory prices. Second, reported and adjusted figures differ, as with AMD's warrant charge or Apple's tariff refunds, so it helps to read what each number includes. Third, growth rates and booking rates can diverge: Palantir's revenue rose 96% while contract value closed rose 6%, a reminder that revenue reflects past deals and bookings reflect future ones. Finally, guidance is a statement of expectations, not a result. A diversified portfolio, sensible costs and a plan matched to your own goals are what carry investors through quarters like these, good and bad.

---

This article is for educational purposes only and does not constitute investment, tax, or legal advice, or a recommendation to buy or sell any security. Consult your financial advisor about your specific situation. Companies mentioned are discussed for educational purposes only; nothing here is a recommendation to buy or sell any security.

Disclosure: One or more of the securities discussed may be held in client accounts managed by VCP Financial. Holdings differ from client to client based on each client's individual objectives and circumstances, are not held by all clients, and are subject to change at any time without notice. The mention of any specific security is not a recommendation to buy, sell, or hold that security, and should not be assumed to be profitable.