The positive vibes were out in full force as Apple (NASDAQ:AAPL) delivered its fiscal Q2 2026 earnings report late last month. The company’s share price has floated upward by ~8% in the week and change since the numbers hit the press.
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It’s easy to understand why investors were pleased. Revenues of $111.2 billion represented a new Q2 record (the previous quarter includes the holiday surge) and were also up 17% year-over-year. Moreover, iPhone revenue was a whopping $57 billion, also a quarterly high, reflecting 22% growth over the previous year.
Services revenue also bounced, gaining 16% year-over-year, with $31 billion in revenues representing an all-time high. The company is guiding for continued growth in the current quarter, announcing expected revenue growth of 14% to 17% for Q3 2026.
Despite the gains, top investor Keithen Drury has a word of advice for those thinking about biting into the AAPL: look elsewhere.
“The iPhone maker is still a solid company, but I don’t think Apple’s stock returns from here will be nearly as explosive as those of many of its peers due to the premium it already carries,” states the 5-star investor, who is among the top 4% of stock pros covered by TipRanks.
Drury certainly isn’t ignoring Apple’s strong earnings report, and acknowledges that this was the second quarter in a row that the company delivered double-digit growth. It was especially vital that iPhone and Services did well, he notes, as these are its two most important business units (“by far”).
“If Apple can maintain such growth rates, it could vault back into the conversation about top tech stocks,” adds Drury.
And yet, the investor is proceeding cautiously, blaming AAPL’s valuation. He points out that the company has persistently enjoyed a premium multiple even during leaner times, and AAPL still trades at an expensive ~35x trailing earnings and ~33x forward earnings.
“There are stocks trading at much lower valuations that are growing far faster than Apple, and I still think they may be better investment opportunities,” concludes Drury. (To watch Drury’s track record, click here)
Wall Street, for the most part, seems content to ride along with AAPL. With 17 Buys, 10 Holds, and 1 Sell, AAPL enjoys a Moderate Buy consensus rating. Its 12-month average price target of $314.78 points to gains of ~7%. (See AAPL stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.