Apple (AAPL) stock moved modestly higher in after-hours trading on Thursday after the company reported fiscal first-quarter results that topped expectations. The report showed strong iPhone sales and guidance that pointed to steady demand, even as questions around Apple’s AI strategy lingered.
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For context, Apple reported earnings of $2.84 per share on revenue of $143.76 billion, beating Wall Street estimates. iPhone revenue came in at $85.3 billion, while Services reached $30 billion, marking another strong quarter for Apple’s core businesses.
iPhone Sales and Outlook Draw Investor Attention
The iPhone remained Apple’s main source of strength during the quarter. Sales were solid across regions, easing concerns that upgrade demand was fading. With iPhone revenue reaching $85.3 billion, investors saw that Apple’s core business remains solid, even as growth comparisons are expected to get tougher later in the year.
Attention then shifted to Apple’s outlook for the March quarter. The company said it expects revenue to grow between 13% and 16% year over year, which implies about $109 billion in sales at the midpoint. Apple also guided operating expenses to a range of $18.4 billion to $18.7 billion, pointing to steady cost control while it continues to invest.
The update pointed to steady demand after the holidays, supporting the stock’s move higher.
Analysts Split on Apple’s AI Position Post Q1
Following the Q1 earnings report, analysts differ on how Apple is positioned in artificial intelligence. For instance, a senior analyst at Seaport Research Partners warned that AI could become an “existential threat” for Apple if the company does not move fast enough. Speaking to Yahoo Finance, the analyst said rivals are moving quicker on AI tools and platforms, increasing pressure on Apple to show clearer progress.
Other analysts were less worried. They said Apple often moves at a slower pace when rolling out new tech, focusing on how it works with its existing products. Even so, many agree that AI is becoming more important for Apple and will play a bigger role in how investors view the stock.
What Investors Will Watch Next
Investor attention now turns to how Apple performs in the March quarter, when demand typically eases after the holiday period.
Apple’s AI plans will also stay in focus, especially as rivals move faster with new features and products. How clearly Apple addresses that gap in the coming months could play a bigger role in where the stock trades from here.
Is Apple Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 19 Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $298.84 per share implies 15.7% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
