Apple (AAPL) Stock Forecast & Price Target

Apple demonstrated robust financial performance in fiscal fourth quarter 2025, with sales reaching $102.5 billion, reflecting an 8% increase year-over-year and aligning closely with estimates for mid to high single-digit growth. The firm's operating income rose to $32.4 billion, a 10% year-over-year increase, highlighting effective management and growth across its service offerings, which experienced a 15% annual growth rate, supporting improved gross margins. Additionally, strong projections for iPhone sales, particularly due to the launches in the Chinese market, indicate a positive trajectory for overall sales growth of 10% to 12% in the coming quarter, underpinned by significant investments in AI and product development.

Apple has experienced a decline in sales from China, with a year-over-year drop of 3.6%, indicating potential challenges in one of its key markets. Despite stable gross margins projected at the high end of 47%, the company faces increased operating expenses, which could pressure profitability. Furthermore, concerns about slowing growth, potential disappointment in iPhone sales, and the possibility of a diminishing reputation could create headwinds for the company's valuation moving forward.