iPhone maker Apple (AAPL) announced that Tim Cook will step down as CEO of the company and be succeeded by John Ternus, senior vice president of Hardware Engineering, effective on September 1, 2026. Cook will become executive chairman of the board. Reacting to the news, top Wedbush analyst Daniel Ives reiterated a Buy rating on Apple stock with a price target of $350. Ives expects investors to have “mixed” views, as Cook’s sudden move to executive chairman suggests there was clear pressure for change at the top leadership level. AAPL stock declined 2.5% on Tuesday.
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It is worth noting that this is the first CEO transition for Apple since Cook succeeded Steve Jobs in 2011, shortly before Jobs’ death.
The news of the CEO change comes ahead of Apple’s Q2 FY26 earnings on April 30. Wall Street expects Apple to report EPS (earnings per share) of $1.94 for Q2 FY26, reflecting about 18% year-over-year growth. Revenue is projected to rise about 15% to $109.35 billion. Analysts expect strength in iPhone sales and Services revenue growth.
Wedbush’s Ives Weighs in on Apple CEO Change
Ives noted that Cook will become the executive chairman of Apple’s board, replacing Arthur Levinson, who has been the non-executive chairman for 15 years and will become lead independent director effective September 1.
The 5-star analyst expects investors to have mixed reactions, as the timing of Cook’s exit “could make sense but also creates questions.” Specifically, Ives noted that Apple is pursuing a big push into AI, and Cook stepping down now is a surprise. The analyst added that there was growing pressure on Apple to deliver a successful AI strategy, and Cook likely believes that the company is now ready, making this a good time to hand over leadership ahead of the crucial WWDC event.
Ives believes that there will be a lot of pressure on Ternus to deliver solid results, especially on the AI front. The analyst noted that while there were rumors about Cook stepping down, investors will still have more questions than answers about the timing and what it would mean for Apple’s overall strategy. “This will put even more pressure on Apple to produce success and its product roadmap at WWDC with AI front and center,” concluded Ives.
Is Apple Stock a Buy, Hold, or Sell?
Ahead of Q2 FY26 earnings, Wall Street has a Moderate Buy consensus rating on Apple stock based on 16 Buys, nine Holds, and one Sell recommendation. The average AAPL stock price target of $300.91 indicates 13% upside potential. AAPL stock is down 2% year-to-date, but has risen 38% over the past year.
