Apple (AAPL) AI Stock Analysis

• Market Cap: $3.88T
• Dividend Yield: 0.38%
• Average Volume (3M): 51.05M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 1.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 164,000
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): N/A
• Shares Outstanding: 14,681,140,000
• 10 Day Avg. Volume: 43,388,770
• 30 Day Avg. Volume: 51,054,206
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $307.55
• Price Target Upside: 16.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27
• EPS Forecast (FY): 8.46
• Revenue Forecast (FY): $462.66B

• Rating: 74 Outperform
• Price Target: $289.00 ▲(9.23% Upside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is driven primarily by very strong financial performance (best-in-class margins and massive free cash flow) and a constructive earnings outlook with record results. Offsetting factors are mixed near-term technical momentum and a premium valuation with a low dividend yield, plus execution risks from supply constraints and input-cost pressures.

Positive Factors

Elite profitability & cash generation

Sustained high gross and net margins underpin enduring free cash flow generation, allowing Apple to fund R&D, capex, and shareholder returns without relying on external financing. This durable cash conversion supports resilience through product cycles and funds ecosystem investments.

Growing, high‑margin Services business

Services deliver recurring, software‑driven revenue with higher margins and lower capital intensity than hardware. Continued double‑digit services growth meaningfully diversifies revenue, raises lifetime customer value, and smooths cyclical device revenue swings over the medium term.

Massive installed base & ecosystem lock‑in

A >2.5 billion active device base creates strong network effects for apps, services, and accessory makers, reinforcing customer retention and cross‑sell opportunities. This structural moat supports sustained monetization and high switching costs for users and enterprise customers.

Negative Factors

Elevated financial leverage

Higher leverage increases sensitivity to revenue or margin shocks despite strong cash flow. If device demand or margins compress, interest and principal commitments limit strategic flexibility, constrain buybacks/dividends, and raise refinancing risk in adverse macro scenarios.

Supply / manufacturing node constraints

Dependence on scarce advanced semiconductor nodes forces production prioritization and delays for mainstream models. Persisting node scarcity or execution shifts to premium SKUs can restrain unit growth, impede market share in mid tiers, and compress long‑term volume scalability.

Moderating top‑line growth in a mature market

A lower single‑digit organic revenue trajectory reflects market saturation in core device markets. That maturity limits upside from unit growth and puts more pressure on services and pricing to drive overall growth, making sustained above‑market expansion more challenging.

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 Financial Statement Overview

Summary

Elite profitability and cash generation (TTM ~47% gross margin, ~27% net margin; ~$126B TTM free cash flow with strong growth) support a high score. The main offsets are elevated leverage (debt-to-equity ~1.5x) and a more mature growth profile despite the return to positive TTM revenue growth.

Income Statement

Apple’s income statement is exceptionally strong. Revenue is growing again in TTM (Trailing-Twelve-Months) (+4.7%) after a softer FY2023, and profitability remains best-in-class with ~47% gross margin and ~27% net margin in both FY2025 and TTM. Operating profitability is also very high (EBIT margin ~32% in TTM), indicating strong pricing power and cost discipline. The main constraint on an even higher score is the relatively modest top-line growth rate versus earlier years, suggesting a more mature growth profile.

Balance Sheet

The balance sheet is solid but not without leverage considerations. Reported debt-to-equity is elevated (around 1.5x in FY2025/TTM, and higher in prior years), which increases dependence on continued strong earnings and cash generation. Offsetting this, equity and assets remain sizable, and shareholder returns are very strong (return on equity well above 1.5x), reflecting excellent profitability. Key watch item: higher leverage leaves less flexibility if demand or margins weaken.

Cash Flow

Cash flow performance is very strong. TTM (Trailing-Twelve-Months) operating cash flow (~$135B) and free cash flow (~$126B) are exceptionally large, and TTM free cash flow growth is strong (+27.3%). Free cash flow is also well supported by earnings (free cash flow is ~0.89x of net income in FY2025/TTM), indicating good cash conversion. The primary weakness is that operating cash flow relative to total debt is moderate (~0.67x in FY2025/TTM), meaning leverage still matters despite robust cash generation.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	435.62B	416.16B	391.04B	383.29B	394.33B	365.82B
Gross Profit	206.16B	195.20B	180.68B	169.15B	170.78B	152.84B
EBITDA	153.43B	144.43B	134.66B	129.19B	133.14B	123.14B
Net Income	117.78B	112.01B	93.74B	97.00B	99.80B	94.68B
Balance Sheet
Total Assets	379.30B	359.24B	364.98B	352.58B	352.75B	351.00B
Cash, Cash Equivalents and Short-Term Investments	66.91B	54.70B	65.17B	61.55B	48.30B	62.64B
Total Debt	90.51B	112.38B	119.06B	123.93B	132.48B	136.52B
Total Liabilities	291.11B	285.51B	308.03B	290.44B	302.08B	287.91B
Stockholders Equity	88.19B	73.73B	56.95B	62.15B	50.67B	63.09B
Cash Flow
Free Cash Flow	123.32B	98.77B	108.81B	99.58B	111.44B	92.95B
Operating Cash Flow	135.47B	111.48B	118.25B	110.54B	122.15B	104.04B
Investing Cash Flow	517.00M	15.20B	2.94B	3.71B	-22.35B	-14.54B
Financing Cash Flow	-120.97B	-120.69B	-121.98B	-108.49B	-110.75B	-93.35B

Apple Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
META	81 Outperform	$1.63T	27.39	30.24%	0.32%	22.17%	-2.66%
AAPL	74 Outperform	$3.88T	33.45	152.02%	0.38%	―	―
GOOGL	74 Outperform	$3.67T	28.07	35.70%	0.26%	13.55%	34.26%
MSFT	74 Outperform	$2.97T	25.00	34.39%	0.71%	16.67%	28.60%
DELL	65 Neutral	$77.39B	15.58	―	1.45%	10.81%	31.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONY	56 Neutral	$136.81B	-111.58	14.69%	0.41%	-2.47%	6.49%

Apple Corporate Events

Apple appoints Ben Borders as principal accounting officer

Apple Inc. announced that its Board of Directors has appointed Ben Borders, 45, as Principal Accounting Officer effective January 1, 2026, as part of a previously disclosed transition plan, succeeding Chris Kondo in the role. Borders, who joined Apple in November 2010 and previously served as Director of Technical Accounting, assumed the position in January 2026, with the company noting that he has no disclosable family relationships or related-party transactions with Apple’s directors or executive officers under applicable regulations.

The most recent analyst rating on (AAPL) stock is a Sell with a $230.00 price target. To see the full list of analyst forecasts on Apple stock, see the AAPL Stock Forecast page.

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.

The most recent analyst rating on (AAPL) stock is a Buy with a $330.00 price target. To see the full list of analyst forecasts on Apple stock, see the AAPL Stock Forecast page.