Apple (AAPL) Stock Forecast & Price Target

Apple's financial performance in the fourth quarter of 2025 indicates robust sales growth, with total sales rising 8% to $102.5 billion, aligning closely with projections for sustained mid to high single-digit growth. The company's operational efficiency remains strong, as operating income reached $32.4 billion, marking a 10% year-over-year increase despite an anticipated slight dip in operating margin to 33.6%. Notably, iPhone sales are projected to grow by double digits year-over-year, while services are expected to expand near a 13.5% pace, providing a favorable outlook for continued overall revenue progression as the company capitalizes on increasing demand, especially in the Chinese market.

Apple has experienced a year-over-year decline in sales in China by 3.6%, indicating potential challenges in one of its key markets. Although the consolidated gross margin guide remains stable at the high end of 47%, higher operating expenses (Opex) could pressure profitability. Furthermore, there are concerns about declining iPhone sales and the impact of valuation headwinds on future performance, suggesting that growth may falter and affect investor sentiment.