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Buy the Dip in Apple or Palantir Stock After Earnings?
Key Takeaways
Apple delivered record fiscal Q4 and FY26 results, supported by strong iPhone demand and Services growth.
Palantir reported record Q3 results, fueled by accelerating enterprise AI adoption.
Apple's stronger free cash flow and more reasonable valuation offer a more balanced risk-reward profile.
Shares of technology giants Apple (AAPL - Free Report) ) and Palantir Technologies (PLTR - Free Report) ) are retreating on Tuesday despite delivering impressive quarterly results on Monday evening.
Apple continues to benefit from strong iPhone demand and its expanding services business, while Palantir's explosive growth reflects accelerating adoption of its artificial intelligence software.
With both stocks pulling back roughly 2%, investors may be wondering which offers the better buy-the-dip opportunity.
Apple's Record Q4 & FY26 Results
Apple reported record results for its fiscal fourth quarter, with adjusted earnings rising nearly 11% year over year to $2.05 per share when excluding a favorable $0.05 impact from tariff refunds, topping expectations of $1.98 by more than 3%.
This came as Q4 revenue increased 12% YoY to a September-quarter record of $114.47 billion and comfortably topped estimates of $112.95 billion. Notably, iPhone revenue jumped 17% to $57.6 billion, while Services revenue rose 10% to another all-time high of $31.57 billion.
Image Source: Zacks Investment Research
For its full-year fiscal 2026, Apple generated record revenue of $478.83 billion, up 15% YoY, with annual EPS climbing 18% to $8.82 when excluding tariff refunds.
Looking ahead, Apple expects fiscal Q1 revenue growth of 7%-10%, exceeding Wall Street's consensus forecast of 5.5% growth (Current Qtr below) and potentially marking another record quarter.
However, rising memory costs and AI-related expenses are expected to pressure gross margins, which are projected at 45%-46%, compared with 47.9% in Q4.
Image Source: Zacks Investment Research
Palantir's Explosive AI Growth & Raised Guidance
Palantir delivered stellar Q3 results, with quarterly revenue soaring 96% YoY to a record $2.31 billion and adjusted earnings reaching a peak of $0.44 per share. This exceeded top-and bottom-line expectations by 6% and 7%, respectively.
More impressively, U.S. commercial revenue surged 148% to $984 million as demand for Palantir's Artificial Intelligence Platform (AIP) accelerated.
Image Source: Zacks Investment Research
Encouragingly, management raised its FY26 revenue guidance to $8.53 billion, representing 91% growth and ahead of the current Zacks Consensus of $8.21 billion or 83% growth.
Palantir expects Q4 revenue at $2.65 billion, which came in ahead of Wall Street’s forecast of $2.45 billion or roughly 74% growth, reflecting continued momentum in enterprise AI adoption.
Image Source: Zacks Investment Research
AAPL & PLTR Performance Comparison
Following their pullbacks, Apple shares are still up more than 20% year-to-date, although Palantir stock is now down 2%.
That said, in the last three years, PLTR has still vastly outperformed the broader indexes with stellar gains of more than 800%, while AAPL’s 84% return has edged the benchmark S&P 500 but slightly trailed the Nasdaq.
Image Source: Zacks Investment Research
Free Cash Flow & Valuation Comparison
Apple's exceptional cash-generating ability remains a major attraction, with full-year free cash flow (FCF) rising 38% to $136 billion.
Palantir is also demonstrating impressive capital efficiency, generating $1.22 billion in adjusted free cash flow during Q3, representing a robust 53% margin. Furthermore, management raised its full-year adjusted FCF outlook to $4.8-$5 billion.
Despite its faster growth, Palantir's valuation remains considerably more expensive, trading near 100X forward earnings and 37X forward sales compared with Apple’s forward P/E and P/S multiples of 35X and 9X, respectively.
While Palantir's extraordinary growth may justify a premium, Apple's more established profitability and substantially larger cash flows provide a more balanced risk-reward profile.
Image Source: Zacks Investment Research
Bottom Line: Buy AAPL or PLTR After Earnings?
For now, Apple and Palantir stocks both land a Zacks Rank #3 (Hold), suggesting investors may want to be patient before aggressively buying either stock following their quarterly reports.
That said, Apple's more reasonable valuation, record annual results, and exceptional free cash flow make it the more appealing choice for investors seeking stability. Palantir offers substantially greater growth potential, but its lofty valuation leaves shares vulnerable to further selling pressure despite outstanding AI-driven momentum.
View the Zacks #1 Rank List
Image: Bigstock
Buy the Dip in Apple or Palantir Stock After Earnings?
Key Takeaways
Shares of technology giants Apple (AAPL - Free Report) ) and Palantir Technologies (PLTR - Free Report) ) are retreating on Tuesday despite delivering impressive quarterly results on Monday evening.
Apple continues to benefit from strong iPhone demand and its expanding services business, while Palantir's explosive growth reflects accelerating adoption of its artificial intelligence software.
With both stocks pulling back roughly 2%, investors may be wondering which offers the better buy-the-dip opportunity.
Apple's Record Q4 & FY26 Results
Apple reported record results for its fiscal fourth quarter, with adjusted earnings rising nearly 11% year over year to $2.05 per share when excluding a favorable $0.05 impact from tariff refunds, topping expectations of $1.98 by more than 3%.
This came as Q4 revenue increased 12% YoY to a September-quarter record of $114.47 billion and comfortably topped estimates of $112.95 billion. Notably, iPhone revenue jumped 17% to $57.6 billion, while Services revenue rose 10% to another all-time high of $31.57 billion.
Image Source: Zacks Investment Research
For its full-year fiscal 2026, Apple generated record revenue of $478.83 billion, up 15% YoY, with annual EPS climbing 18% to $8.82 when excluding tariff refunds.
Looking ahead, Apple expects fiscal Q1 revenue growth of 7%-10%, exceeding Wall Street's consensus forecast of 5.5% growth (Current Qtr below) and potentially marking another record quarter.
However, rising memory costs and AI-related expenses are expected to pressure gross margins, which are projected at 45%-46%, compared with 47.9% in Q4.
Image Source: Zacks Investment Research
Palantir's Explosive AI Growth & Raised Guidance
Palantir delivered stellar Q3 results, with quarterly revenue soaring 96% YoY to a record $2.31 billion and adjusted earnings reaching a peak of $0.44 per share. This exceeded top-and bottom-line expectations by 6% and 7%, respectively.
More impressively, U.S. commercial revenue surged 148% to $984 million as demand for Palantir's Artificial Intelligence Platform (AIP) accelerated.
Image Source: Zacks Investment Research
Encouragingly, management raised its FY26 revenue guidance to $8.53 billion, representing 91% growth and ahead of the current Zacks Consensus of $8.21 billion or 83% growth.
Palantir expects Q4 revenue at $2.65 billion, which came in ahead of Wall Street’s forecast of $2.45 billion or roughly 74% growth, reflecting continued momentum in enterprise AI adoption.
Image Source: Zacks Investment Research
AAPL & PLTR Performance Comparison
Following their pullbacks, Apple shares are still up more than 20% year-to-date, although Palantir stock is now down 2%.
That said, in the last three years, PLTR has still vastly outperformed the broader indexes with stellar gains of more than 800%, while AAPL’s 84% return has edged the benchmark S&P 500 but slightly trailed the Nasdaq.
Image Source: Zacks Investment Research
Free Cash Flow & Valuation Comparison
Apple's exceptional cash-generating ability remains a major attraction, with full-year free cash flow (FCF) rising 38% to $136 billion.
Palantir is also demonstrating impressive capital efficiency, generating $1.22 billion in adjusted free cash flow during Q3, representing a robust 53% margin. Furthermore, management raised its full-year adjusted FCF outlook to $4.8-$5 billion.
Despite its faster growth, Palantir's valuation remains considerably more expensive, trading near 100X forward earnings and 37X forward sales compared with Apple’s forward P/E and P/S multiples of 35X and 9X, respectively.
While Palantir's extraordinary growth may justify a premium, Apple's more established profitability and substantially larger cash flows provide a more balanced risk-reward profile.
Image Source: Zacks Investment Research
Bottom Line: Buy AAPL or PLTR After Earnings?
For now, Apple and Palantir stocks both land a Zacks Rank #3 (Hold), suggesting investors may want to be patient before aggressively buying either stock following their quarterly reports.
That said, Apple's more reasonable valuation, record annual results, and exceptional free cash flow make it the more appealing choice for investors seeking stability. Palantir offers substantially greater growth potential, but its lofty valuation leaves shares vulnerable to further selling pressure despite outstanding AI-driven momentum.