Analysts Trivariate Research highlight potential margin pressure on major stocks including Apple (AAPL) and Oracle (ORCL)

According to Trivariate Research founder Adam Parker, a screening of stocks indicates that some well-known companies are projected to experience gross margin contractions of at least 1% in the upcoming fiscal year.

This trend is concerning as firms that have previously seen over 100 basis points of margin contraction have underperformed their industry averages by more than 15% over the past year, marking the worst performance for this group in approximately 25 years. Among the companies identified, Apple is expected to see a 1.4% decline in margins, coinciding with CEO Tim Cook's departure after 15 years.

Despite a 16% rise in Apple's shares in 2026, analysts suggest limited upside potential of less than 2% over the next year. Oracle is projected to face a more severe margin decline of over 6%, with its shares down more than 23% this year, potentially ending a three-year winning streak.

However, analysts remain optimistic about Oracle's recovery, with a buy rating and a price target implying around 70% upside. Additionally, Altria Group is expected to experience a margin shrinkage of over 14%, although its stock has risen nearly 20% this year, with analysts anticipating only a modest 2% increase in the next year.

The findings highlight the importance for management teams to communicate clear strategies for margin expansion to investors

Stocks in this article

Company Price Change Change % AI
Altria MO.US 74.31 -1.76 -2.31% Hold
Oracle ORCL.US 126.16 +0.65 +0.52% Sell
Apple AAPL.US 347.73 -0.50 -0.14% Buy

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