Apple reports earnings as CEO Cook gets set to hand over reins

Apple (AAPL) is scheduled to report results of the second fiscal quarter of FY26 after the market close on Thursday, April 30, with a conference call scheduled for 5:00 pm ET. What to watch for:

EXPECTATIONS: Last quarter, Apple beat consensus sales and earnings expectations, reporting EPS of $2.84 on Q1 revenue of $143.8B in what CEO Tim Cook highlighted as the iPhone’s “best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment.”

Cook also highlighted Services achieved “an all-time revenue record” and that the company’s installed base had grown to more than 2.5B active devices.

Current consensus EPS and revenue forecasts for Apple’s March-end quarter stand at $1.94 and $109.73B, respectively, according to data provided by S&P Global Market Intelligence.

Consensus EPS and revenue forecasts for Apple’s June-end quarter stand at $1.74 and $102.61B, respectively, according to S&P Global.

Among analysts tracked by Bloomberg that have updated their views on Apple within the last twelve months, 40 have Buy or equivalent ratings, 16 have Hold or equivalent ratings and two have Sell or equivalent ratings. The average twelve month price target of 38 of those analysts is $304.68.

CHANGE AT THE TOP: On April 20, the company announced that Tim Cook will become Executive Chairman of Apple’s board of directors and John Ternus, Senior Vice President of Hardware Engineering, will become Apple’s next Chief Executive Officer effective on September 1. “Cook will continue in his role as CEO through the summer as he works closely with Ternus on a smooth transition. As executive chairman, Cook will assist with certain aspects of the company, including engaging with policymakers around the world,” Apple stated.

Following that announcement, Citi analyst Atif Malik kept a Buy rating on Apple with a $315 price target noting that Ternus has spent more than 25 years at Apple. Citi says that while the timing seems “somewhat earlier than many had expected, Ternus was front runner for the job.” It continues to see Apple as an attractive, defensive stock into earnings.

Meanwhile, BofA analyst Wamsi Mohan said the timing of the leadership transition suggests that near-term results are “extremely resilient” given that Apple will likely plan such changes from a position of strong business momentum. In addition, a product-oriented leader with years of experience in Apple’s hardware design “suggests we might be entering a new era of devices” and 2027 “could be a big product year,” adds the analyst, who maintains a Buy rating and $325 price target on Apple shares.

JPMorgan also views the “highly-awaited change of guard” at Apple positively with John Ternus a product focused executive at a time when Apple faces intense market competition to deliver next generation form factors within smartphones and beyond. The firm says Apple will continue to benefit from Tim Cook’s leadership with policymakers globally. JPMorgan has an Overweight rating on the shares.

BNP BULLISH: On April 17, BNP Paribas analyst David O’Connor upgraded Apple to Outperform from Neutral with a $300 price target The memory price crunch should translate to low-to-mid tier demand destruction at the industry level for smartphones, but the firm sees an opportunity for Apple to drive share gains because while the company is impacted by higher memory prices, its “size availability is not an issue and it typically commands the best price,” the analyst tells investors.

More recently, UBS raised the firm’s price target on Apple to $287 from $280 and kept a Neutral rating on the shares. Supply chain checks and sell-through data indicate modest upside to iPhone estimates and at least in-line demand for Mac products such as Neo and Mac mini, the analyst told investors. Services growth is expected to remain steady but not exceed current assumptions, while gross margins are expected to land near the midpoint of guidance, leading to slight EPS upside versus current estimates, the firm predicted.

SENTIMENT: Check out recent Media Buzz Sentiment on Apple as measured by TipRanks.