Tim Cook’s final earnings report as Apple CEO is today after the closing bell. The exec — who has held the role since August 2011 — leaves his Apple post in a familiar position: a dominant force crushing the stock market.
Apple shares are up more than 2,400% since Cook took the reins, a period that’s seen the tech giant add $4.6 trillion in market cap, becoming the world’s first trillion-dollar company along the way.
Meanwhile, Apple is up 24% so far in 2026, trouncing the Magnificent 7 (flat) and S&P 500 (+7%). Much of that separation has come in the month of July, amid a reckoning of sorts for AI spending and the companies relying upon it.
The period of Mag 7 weakness has coincided with heightened sensitivity over exorbitant capex-spending plans and potential AI-demand slowdowns. Some areas, like the particularly vulnerable chipmaker sector, were plunged into bear markets.
Investors instead prioritized certainty: gigantic buybacks, strong cash flow, and pricing power — all attributes possessed by Apple. The shift is clear: Investors finally appreciate a company that doesn’t need to explain a gigantic AI budget.
That all sets up an Apple earnings report that sees the company stepping into a new role, at least in the eyes of investors: an escape hatch from the AI trade.
Put differently, for much of the past two years, investors have favored whichever companies are most central to the AI-infrastructure buildout. In July, they started rewarding Apple because it isn’t.
Despite Apple’s new position as a shelter from AI jitters, its earnings are still a high-stakes affair for Big Tech and the broader stock market. Here’s what investors will be looking for, as they get a respite from their capex-spending obsession:
1. Impact of the memory-chip squeeze
A global shortage has pushed memory-chip prices sharply higher this year, putting pressure on hardware margins. Apple has so far offset those costs with price hikes outside of the iPhone. Investors will be looking for clues about whether the company can continue protecting margins without raising iPhone prices.
2. iPhone demand
The iPhone remains Apple’s biggest business, and Wall Street expects a sales jump thanks to the new iPhone 17 lineup. Investors will be watching for signs that the latest upgrade cycle still has momentum.
3. Can the China comeback continue?
China has gone from Apple’s biggest headache to a bright spot for growth. Investors will want to see whether the recent rebound in the region is sustainable, especially amid fierce competition from Huawei and other local rivals.
