Apple earnings updates: Wall Street is bullish on iPhone demand, AI, as market cap tops $4 trillion

Analysts at Goldman said they expect Apple to beat on earnings for the quarter, driven largely by strong demand for its new iPhones.

The bank estimated that iPhone product revenue could see a 10% year-over-year increase to $50.8 billion, compared to the consensus estimate of $49.8 billion in revenue for the quarter.

Apple could also see its services revenue grow 13% year-over-year, thanks to continued momentum across subscription services like iCloud+ and AppleCare+, analysts added.

Still, “key areas of debate” among investors include the sustainability of iPhone demand due to trade policy uncertainty, as well as risks to the company’s App Store revenue, the bank said.

Goldman reiterated its “Buy” rating for the stock and issued a price target of $279 a share, implying 3% upside from current levels.

Fourth Quarter

• Revenue estimate $102.19 billion
• Products revenue estimate $73.49 billion
• Mac revenue estimate $8.55 billion
• iPad revenue estimate $6.97 billion
• Wearables, home and accessories estimate $8.64 billion
• Services revenue estimate $28.18 billion
• Greater China rev. estimate $16.43 billion
• Americas rev. estimate $44.45 billion
• Europe revenue estimate $26.36 billion
• Japan revenue estimate $6.41 billion
• Rest of Asia Pacific revenue estimate $8.08 billion
• EPS estimate $1.77
• Total operating expenses estimate $15.75 billion
• Research and development operating expenses estimate $8.8
  billion
• SG&A operating expense estimate $6.96 billion
• Gross margin estimate $47.41 billion
• Cash and cash equivalents estimate $51.67 billion
• Cost of sales estimate $54.47 billion
• Total current assets estimate $144.92 billion
• Total current liabilities estimate $159.68 billion

  First Quarter

• Capital expenditure estimate $3.97 billion

  2026

• Capital expenditure estimate $15.03 billion

Source: Bloomberg