iPhone maker Apple (AAPL) will report its Q2 FY25 earnings on May 1. AAPL stock has declined 16% in 2025 so far due to rising geopolitical tensions and tariff uncertainties. Wall Street analysts expect the company to post earnings of $1.61 per share, up 5% from the year-ago quarter. Meanwhile, revenues are expected to increase by about 4% from the year-ago quarter to $94.19 billion, according to data from the TipRanks Forecast page.
Notably, Apple has an encouraging earnings surprise history. The company missed earnings estimates just once out of the previous nine quarters.
Recent Event Ahead of Q2 Print
On April 23, the European Union (EU) imposed significant fines on Apple and Meta for failing to comply with its tech regulations. The European Commission fined Apple $570 million and Meta $230 million, giving them two months to meet the regulatory requirements or face further penalties.
Analyst’s Views Ahead of AAPL’s Q2 Earnings
Ahead of Apple’s Q2 print, Top analyst Srini Pajjuri of Raymond James lowered his price target on Apple to $230 from $250, citing tariff-related headwinds, but maintained an Outperform rating. He expects healthy near-term iPhone demand driven by early purchases ahead of tariffs, “healthy iPhone demand driven by iPhone 16e,” and China subsidies. However, he sees some downside to FY25 and FY26 earnings due to potential price hikes and tariff costs, which could dampen demand and pressure margins. Still, he views any stock weakness as a buying opportunity, supported by Apple’s strong ecosystem, Services growth, and long-term AI potential.
Meanwhile, another five-star analyst, Samik Chatterjee of JPMorgan, reiterated an Overweight rating with a price target of $245.00 per share. He expects Apple to deliver better-than-expected March-quarter results, helped by stronger iPhone demand and inventory buildup ahead of possible price hikes. Chatterjee also thinks gross margins will benefit from lower costs, since most iPhones were shipped before new China tariffs took effect. As a result, he sees revenue growth of about 5.5% year-over-year, above Apple’s guidance. That said, given the macro uncertainty, the analyst anticipates that the demand will slow in the second half of 2025.
According to Main Street Data, Apple reported iPhone revenue of $69.1 billion in the fiscal first quarter of 2025 (October to December 2024), a slight decrease from $69.7 billion in the same quarter the previous year.
Options Traders Anticipate a Minor Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 4.57% move in either direction.
What Is the Price Target for Apple?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on APPL stock based on 19 Buys, 12 Holds, and three Sell assigned in the past three months, as indicated by the graphic below. The average AAPL stock price target is $236.93, implying upside potential of 12.18%.
