Apple (AAPL) Stock Forecast & Price Target

Apple demonstrated robust financial performance with a 15.7% year-over-year increase in sales, reaching $143.8 billion, significantly surpassing initial guidance. The firm experienced operating margin expansion, attributed to a favorable revenue mix, with service revenues hitting an all-time high of $30 billion and gross margins improving to 76.5%. Furthermore, Apple projects continued growth, anticipating sales to rise 13% to 16% year-over-year in F2Q26, alongside gross margin expectations of 48% to 49%, reflecting a promising outlook for the company's financial trajectory.

The analysis highlights several fundamental concerns contributing to a negative outlook on Apple's stock. Firstly, the company faces high relative valuation and potential margin compression in FY26, accompanied by increasing competitive threats from emerging technologies, which may hinder revenue growth from core products like the iPhone. Additionally, concerns regarding succession risk, particularly following Cook's potential departure, coupled with the challenges of adapting to a future less reliant on smartphones, pose significant risks to Apple's long-term operating performance.