Apple Shares Dip on Mixed Earnings as Analysts Maintain Bullish Stance

Apple delivered a mixed fiscal fourth-quarter report, posting earnings that exceeded expectations while offering a cautious profit outlook that weighed on shares. The iPhone maker reported earnings of $2.10 per share, surpassing the $1.99 consensus compiled by LSEG. Revenue reached $114.48 billion, topping the anticipated $113.39 billion. iPhone sales, a cornerstone of Apple’s revenue, came in at $57.58 billion, exceeding the $56.54 billion analyst estimate. However, iPad and other product sales fell short of projections, and the company’s gross-margin forecast for the current quarter—between 45% and 46%—fell below the Street’s average estimate of 46.3%. Apple shares slid roughly 4% in premarket trading as investors reacted to the subdued outlook and softer demand in certain product categories. Despite the pullback, the stock remains up approximately 24% year to date.

Wall Street largely viewed the mixed results as a temporary setback in a broader upward trajectory. Goldman Sachs analyst Michael Ng said the report increased his confidence in the critical iPhone refresh cycle, citing a multi-year opportunity for the iPhone Duo and foldable form factors. Ng noted near-term headwinds, including Services pressure from the App Store, weaker third-party licensing revenue, and persistent memory-cost inflation. Goldman maintains a Buy rating and lowered its price target to $380 from $390, implying more than 12% upside from the prior close.

Evercore ISI reiterated an Outperform rating with a $380 target, noting that underlying hardware demand remains healthy despite price increases. The firm highlighted that attention is shifting toward margins and earnings power as memory costs climb, Services growth moderates, and spending on Siri AI begins to factor into financial models. Evercore expects a choppy gross-margin environment until memory pricing stabilizes or Siri AI unlocks new monetization avenues.

Bernstein maintained an Outperform rating and a $370 price target, expressing near-term caution over accelerating memory-cost inflation that pressures gross margins. The firm remains bullish long term, describing Apple as the gateway to the consumer on-device intelligence revolution, uniquely positioned at the intersection of hardware, software, and AI, with a premium installed base exceeding 2.5 billion active devices.

Barclays kept an Underweight rating with a $261 price target, raised from $245, still implying roughly a 23% decline. The bank cited concerns over Services trends, noting that the App Store was not listed among the top three revenue contributors in the June quarter for only the third time in a decade. Barclays also pointed to regulatory pressure in the EU and U.S. related to link-out transactions.

Bank of America maintained a Buy rating and a $370 target. The firm acknowledged supply constraints affecting iPhone, iPad, and Mac sales but described the fiscal fourth quarter as strong, with iPhone revenue growing 17% year over year, including double-digit growth in the U.S. and Greater China. Apple guided fiscal first-quarter revenue to $154–158 billion, above the Street’s $153 billion estimate, supported by unit growth and higher average selling prices despite a staggered product launch.

Citi reiterated a Buy rating with a $365 price target, citing Apple’s long-term trajectory and its ability to gain share while driving engagement and monetization across its installed base through third-party apps, partnerships, and first-party services such as iCloud+ and enhanced Siri AI capabilities.

JPMorgan maintained an Overweight rating with a $355 target, trimmed from $360, which implies roughly 5% upside. The bank expects the stronger hardware product cycle to support installed-base growth and drive a recovery in Services through expanded offerings and broader geographic reach. JPMorgan cited Apple’s continued refinement of Siri AI and related monetization as key longer-term positives.

Morgan Stanley kept an Overweight rating but lowered its price target to $350 from $355. The firm said the results are unlikely to shift the balance between Apple’s bulls and bears. Bulls point to December-quarter revenue strength, lower capital expenditures, robust free cash flow, and continued iPhone resilience. Bears highlight Services deceleration, agentic AI risks, memory-cost headwinds, and limited post-quarter earnings revisions. Morgan Stanley currently leans toward the constructive camp.

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