Apple (AAPL) Stock Forecast & Price Target

Apple's financial performance shows robust growth, with F4Q25 sales increasing by 8% to $102.5 billion, closely aligning with estimates and reflecting strong iPhone sales anticipated to grow by double digits year-over-year in F1Q26. The services segment also displayed impressive performance, growing 15% year-over-year, which positively influences overall gross margin as the company shifts its focus toward a higher-margin services mix. Additionally, projections for sales growth of 10% to 12% for the upcoming quarter are bolstered by a strong demand for iPhone 17, particularly in the recovering Chinese market, alongside substantial investments in AI and product development indicated by a 19% increase in operating expenses.

Apple's sales in China experienced a decline of 3.6% year-over-year, signaling potential challenges in one of its key markets. The company's consolidated gross margin guidance for the first fiscal quarter of 2026 remains flat year-over-year at the high end of 47%, which, coupled with higher operating expenses, may strain profitability. Concerns over iPhone sales performance and the possibility of a slowdown in growth further contribute to a negative outlook on the company's stock valuation.