Praise continues to pour in for consumer electronics giant Apple (AAPL) after the company closed out its Fiscal Year 2025 with solid earnings that exceeded Wall Street’s expectations.
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Wall Street banking heavyweight JPMorgan (JPM) boosted its price target for Apple’s stock, pointing to a “higher than usual level of confidence from management.”
Apple Earnings Beat Wall Street
Apple on Thursday released its fourth-quarter results, showing sales jumped 8% year-over-year, driven by solid performance in its Services segment and strong demand for its latest iPhone 17 series. Revenue from this segment climbed 15% year-over-year, elevated by higher subscriptions for iCloud+, AppleCare, and AppleOne.
The California-based company also saw its earnings per share rise 13% YoY to $1.85, beating Wall Street’s projected $1.78. Overall revenue slightly surpassed analysts’ expectations of $102.17 billion, coming in at $102.5 billion.
Here’s Why Wall Street Is Turning Bullish on Apple
Reacting to the earnings beat, JPMorgan analyst Samik Chatterjee raised his AAPL price target by more than 12% to $305 per share, up from $290.
The five-star analyst, who maintained his Overweight rating on the stock, noted that iPhone sales traction has helped Apple polish its outlook for the new fiscal year better than expected. Goldman Sachs also echoed a similar sentiment.
Following its Q4 performance, Apple now expects to rake in 10% to 12% more in revenue by the second quarter of its Fiscal Year 2026 — that is, between January and March next year. Chatterjee noted that this will be the company’s highest growth rate since the first quarter of 2022.
Subsequently, JPMorgan “materially” lifted its revenue growth forecast for Apple, believing it will continue to sustain its product cycle momentum.
Similarly, Bank of America analyst Wamsi Mohan raised his price target from $320 to $325, noting that Apple surprised Wall Street’s projections with its 47.2% gross profit margin, even after a $1.1 billion charge from tariffs during the quarter.
Mohan believes the company will post even better margins in Q2, riding on expected easing of tariff conditions and a shift in revenue composition, with a greater proportion emerging from its Services segment. The five-star analyst further pointed to the anticipated introduction of AI-enhanced Siri and the launch of a foldable iPhone smart device by September.
Will Apple Stock Reach $700 Again?
Across the broader Wall Street, however, Apple’s shares currently have a Moderate Buy consensus rating based on 20 Buys, 12 Holds, and three Sells assigned by 35 analysts over the past three months.
Moreover, at $266.24, the AAPL price target suggests about 2% downside risk.
See more AAPL analyst ratings here.