Apple (AAPL) AI Stock Analysis

• Market Cap: $4.12T
• Dividend Yield: 0.37%
• Average Volume (3M): 46.87M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 1.12
• Revenue Growth: 6.43%
• EPS Growth: 22.85%
• Country: US
• Employees: 164,000
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 1.85
• Shares Outstanding: 14,776,353,000
• 10 Day Avg. Volume: 40,111,789
• 30 Day Avg. Volume: 46,873,079
• PEG Ratio: 1.51
• Price to Book (P/B): 51.79
• Price to Sales (P/S): 9.18
• P/FCF Ratio: 38.66
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 9.26
• Enterprise Value/Gross Profit: 19.75
• Enterprise Value/Ebitda: 26.56
• 1Y Price Target: $298.60
• Price Target Upside: 7.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 33
• EPS Forecast (FY): 8.24
• Revenue Forecast (FY): $450.74B

• Rating: 79 Outperform
• Price Target: $324.00 ▲(16.89% Upside)

Apple's overall stock score is driven by strong financial performance and bullish technical indicators, despite a high valuation. The company's robust profitability and efficient operations support its leadership position in the consumer electronics industry. While the stock is technically overbought, its strategic focus on services and emerging markets provides growth potential.

Positive Factors

Strong Services Growth

The robust growth in Apple's Services segment indicates a successful diversification strategy, providing a stable and recurring revenue stream that enhances long-term financial stability.

Record Revenue Achievement

Achieving record revenue demonstrates Apple's strong market position and continued demand for its products, supporting sustainable growth and competitive advantage.

Expansion and Innovation

Continuous innovation and product expansion reinforce Apple's competitive edge, ensuring relevance in the tech industry and driving future growth.

Negative Factors

Supply Constraints

Ongoing supply constraints could limit Apple's ability to meet demand, potentially impacting revenue growth and customer satisfaction in the long term.

Challenges in Greater China

Declining revenue in Greater China, a key market, poses a risk to Apple's growth strategy, highlighting potential vulnerabilities in its global operations.

Leadership Changes in AI

Leadership changes in AI could disrupt ongoing projects and strategic direction, affecting Apple's ability to innovate in a critical area of technology.

Apple Business Overview & Revenue Model

Company Description

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts, as well as advertising services include third-party licensing arrangements and its own advertising platforms. In addition, the company offers various subscription-based services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

How the Company Makes Money

Apple generates revenue through multiple key streams. The largest segment is the iPhone, which has consistently contributed a significant portion of the company's overall sales. In addition to hardware sales, Apple has a growing Services segment, which includes subscription services like Apple Music, Apple TV+, iCloud storage solutions, and the App Store, providing a recurring revenue model. The company also earns revenue from the sale of Mac computers, iPads, and Wearables, such as the Apple Watch and AirPods. Significant partnerships with app developers, content creators, and telecom providers enhance its ecosystem, driving sales and customer retention. Apple's focus on premium products and its strong brand loyalty also contribute to its substantial profit margins.

Apple Financial Statement Overview

Summary

Apple's financial performance is robust, with strong revenue growth of 32.66%, high profitability margins, and efficient cash flow management. The balance sheet shows low leverage, and the company maintains a solid financial position with impressive return on equity.

Income Statement

Apple's income statement shows strong performance with a significant revenue growth rate of 32.66% in the latest year, driven by robust sales. The company maintains high profitability with a gross profit margin of 46.91% and a net profit margin of 26.92%. EBIT and EBITDA margins are also strong at 31.89% and 34.70%, respectively, indicating efficient operations and cost management.

Balance Sheet

Apple's balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.11, indicating low leverage and financial stability. The return on equity is impressive at 151.91%, showcasing high profitability relative to shareholder equity. The equity ratio is not directly provided, but the company's strong equity base supports its financial health.

Cash Flow

Apple's cash flow statement highlights a healthy cash generation with a free cash flow growth rate of 36.64%. The operating cash flow to net income ratio is 0.67, and the free cash flow to net income ratio is 0.89, indicating efficient cash conversion and strong liquidity. These metrics demonstrate Apple's ability to generate cash and sustain operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	416.16B	416.16B	391.04B	383.29B	394.33B	365.82B
Gross Profit	195.20B	195.20B	180.68B	169.15B	170.78B	152.84B
EBITDA	145.13B	144.43B	134.66B	125.82B	133.14B	123.14B
Net Income	112.01B	112.01B	93.74B	97.00B	99.80B	94.68B
Balance Sheet
Total Assets	359.24B	359.24B	364.98B	352.58B	352.75B	351.00B
Cash, Cash Equivalents and Short-Term Investments	54.70B	54.70B	65.17B	61.55B	48.30B	62.64B
Total Debt	98.66B	98.66B	119.06B	123.93B	132.48B	136.52B
Total Liabilities	285.51B	285.51B	308.03B	290.44B	302.08B	287.91B
Stockholders Equity	73.73B	73.73B	56.95B	62.15B	50.67B	63.09B
Cash Flow
Free Cash Flow	98.77B	98.77B	108.81B	99.58B	111.44B	92.95B
Operating Cash Flow	111.48B	111.48B	118.25B	110.54B	122.15B	104.04B
Investing Cash Flow	15.20B	15.20B	2.94B	3.71B	-22.35B	-14.54B
Financing Cash Flow	-120.69B	-120.69B	-121.98B	-108.49B	-110.75B	-93.35B

Apple Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 277.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAPL, the sentiment is Positive. The current price of 277.18 is above the 20-day moving average (MA) of 275.80, above the 50-day MA of 266.84, and above the 200-day MA of 228.22, indicating a bullish trend. The MACD of 3.88 indicates Positive momentum. The RSI at 58.82 is Neutral, neither overbought nor oversold. The STOCH value of 17.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAPL.

Apple Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOGL	85 Outperform	$3.79T	30.95	35.45%	0.26%	13.55%	34.26%
MSFT	79 Outperform	$3.65T	34.93	32.24%	0.71%	15.59%	15.89%
AAPL	79 Outperform	$4.12T	37.34	171.42%	0.37%	6.43%	22.85%
META	76 Outperform	$1.68T	29.46	32.64%	0.31%	21.27%	6.16%
SONY	75 Outperform	$169.15B	21.83	14.45%	0.39%	-2.47%	6.49%
DELL	65 Neutral	$94.10B	18.72	―	1.45%	10.77%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Apple Corporate Events

Apple Announces New General Counsel Appointment

On December 4, 2025, Apple announced that Jennifer Newstead will become the company’s general counsel on March 1, 2026, succeeding Kate Adams, who has held the position since 2017. This leadership transition is significant for Apple’s legal and government affairs strategy, as Newstead will join the executive team and eventually lead Apple’s government affairs organization after Adams’ retirement in late 2026.