Tech giant Apple (AAPL) is scheduled to announce its results for the first quarter of fiscal 2026 on January 29. Ahead of Q1 FY26 earnings, KeyBanc analyst Brandon Nispel reiterated a Hold rating on Apple stock, saying that he continues to have certain concerns about the iPhone maker. Meanwhile, Wall Street expects Apple to report earnings per share (EPS) of $2.67 for Q1 FY26, reflecting an 11.3% year-over-year growth. Revenue is also estimated to rise 11.3% to $138.38 billion.
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Here’s Why KeyBanc Analyst Is Cautious on AAPL Stock
Nispel noted that following the year-to-date underperformance of Apple stock, “the setup appears largely de-risked, providing a neutral NT [near-term] risk/reward.” AAPL stock has declined more than 8% so far this year.
The analyst increased his Q1 FY26 estimates to reflect higher iPhone average selling prices (ASPs) due to mix and an improvement in the Mac business. Nispel added that Q2 FY26 iPhone builds are coming in stronger than anticipated, with ASPs trending higher.
Although near-term trends are healthy, Nispel remains concerned that expectations for second-half growth and margins appear to be elevated.
While Nispel is cautious about Apple stock, several analysts are confident about the company’s prospects based on robust iPhone 17 demand and continued momentum in the company’s Services business.
Is Apple Stock a Buy, Sell, or Hold?
Heading into Q1 FY26 results, Wall Street has a Moderate Buy consensus rating on Apple stock based on 19 Buys, 11 Holds, and two Sell recommendations. The average AAPL stock price target of $298.49 indicates 20.4% upside potential from current levels.
