Introducing Valuation Models! 
Key Takeaways:
- Analysts expect Apple to report modest revenue growth of 4% and earnings expansion in Q3, despite facing tariff headwinds and supply chain challenges.
- The technology leader is demonstrating operational resilience while advancing Apple Intelligence capabilities and expanding domestic manufacturing investments.
- Street consensus suggests a target price of $230.62, indicating a 9% upside potential from current levels.
Apple (AAPL) is on track to report its fiscal third-quarter results tomorrow following a challenging period marked by trade policy uncertainties and continued investment in artificial intelligence capabilities.
Analysts covering AAPL stock expect revenue to increase by 4% year over year to $89.15 billion while earnings are forecast to grow modestly to $1.43 per share.
The consumer technology giant has demonstrated remarkable supply chain agility while navigating tariff impacts and accelerating its transition toward more diversified manufacturing operations.
Apple has maintained consistent execution across its product portfolio while managing complex geopolitical and trade policy challenges.
AAPL stock has beaten revenue and earnings estimates in each of the last five quarters. Despite its consistent outperformance, Apple stock lost close to 4% following its fiscal Q2 earnings.
See analysts’ growth forecasts and price targets for any stock, including Apple (It’s free!) >>>
A Focus on Apple’s Supply Chain Transformation
Apple is executing a comprehensive supply chain diversification strategy with the majority of U.S.-bound iPhones now sourced from India, representing a shift from historical China-centric manufacturing.
The iPhone maker expects tariff-related costs of approximately $900 million for the June quarter, though management notes unique factors that help mitigate these impacts in the near term.
Apple Intelligence continues gaining traction with stronger iPhone 16 performance in markets where the AI features are available, validating its approach to on-device artificial intelligence capabilities.
Services revenue achieved an all-time record of $26.6 billion in fiscal Q2, growing 12% year-over-year, demonstrating the strength of Apple’s ecosystem approach and recurring revenue model.
The company announced a massive $500 billion domestic investment commitment over four years, including facility expansions across multiple states and a new advanced server manufacturing facility in Texas.
iPad revenue grew 15% year-over-year driven by new M3-powered models, with over half of purchasers being new to the product category, indicating continued market expansion opportunities.
Mac revenue increased 7% with broad-based growth across all geographic segments, supported by the latest M4-powered devices and strong customer satisfaction metrics.
Apple’s installed base reached all-time highs across all product categories and geographic segments, providing a foundation for continued Services growth and customer retention.
Build your own Valuation Model to value any stock (It’s free!) >>>
Is AAPL Stock a Buy Before Its Q2 Earnings?
Street consensus suggests a target price of $231, representing moderate upside potential from current trading levels as analysts weigh the company’s operational resilience against near-term headwinds.
Apple’s diversified supply chain strategy and domestic manufacturing investments position the tech giant to navigate trade policy uncertainties while maintaining competitive cost structures.
The Services business momentum and expanding Apple Intelligence capabilities create multiple growth drivers that should support long-term value creation despite near-term margin pressures.
Over the last decade, AAPL stock has surged by nearly 650%, indicating a compound annual growth rate of 23%.
Management’s disciplined capital allocation approach, including a $100 billion share repurchase authorization and 4% dividend increase, demonstrates confidence in the business while returning substantial cash to shareholders.
Apple’s ecosystem strength and customer loyalty provide defensive characteristics during uncertain periods, with the company historically emerging from challenging environments with strengthened market positions.
Value Apple with TIKR’s Valuation Model today for FREE (Find undervalued stocks fast) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
FAQs
1. Is Apple a good stock to buy?
Of the 46 analysts covering AAPL stock, 26 recommend “Buy,” 16 recommend “Hold,” and two recommend “Sell.”
2. What is Apple’s largest revenue driver?
iPhone remains Apple’s largest product category at $46.8 billion quarterly revenue, while Services represents the fastest-growing segment at $26.6 billion.
3. What is the AAPL stock price target?
The average analyst AAPL stock price target is $231, suggesting moderate upside from current levels.
4. Does AAPL stock pay shareholders a dividend?
Yes, Apple pays quarterly dividends with the most recent increase to $0.26 per share, representing a 4% increase and continuing 13 years of annual dividend growth.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
