Apple’s latest earnings came in hot thanks to the iPhone 17. Here’s how analysts are reacting

Apple's fiscal fourth-quarter results exceeded analyst expectations for earnings and revenue, primarily driven by strong demand for the iPhone 17, which sent shares up nearly 2% in premarket trading. CEO Tim Cook projected 10-12% total revenue growth and double-digit iPhone revenue growth for the December quarter, anticipating a record-breaking period. This positive outlook prompted numerous Wall Street firms, including JPMorgan, Goldman Sachs, and Bank of America, to significantly raise their price targets, citing sustained iPhone momentum, accelerating services growth, and improving gross margins, while UBS also increased its target despite maintaining a neutral rating.

Analysis

Apple's fiscal fourth-quarter results exceeded analyst expectations for both earnings and revenue, propelling shares up nearly 2% in premarket trading. This strong performance was primarily attributed to robust demand for the recently launched iPhone 17. CEO Tim Cook further bolstered confidence by projecting 10-12% year-over-year total revenue growth and double-digit iPhone revenue growth for the December quarter, anticipating a record-setting period.

Following this optimistic outlook, numerous Wall Street firms, including JPMorgan, Goldman Sachs, and Bank of America, significantly raised their price targets for AAPL. Analysts highlighted sustained iPhone product cycle momentum, accelerating Services segment growth (expected ~14% in Dec), and improving gross margins as key drivers. Citi, for instance, increased its price target to $315, citing above-Street sales guidance and strong Greater China performance.

The positive sentiment extends to Apple's long-term prospects, with Bank of America forecasting mid-teens EPS growth through 2030. This outlook is supported by anticipated iPhone upgrade cycles, the planned introduction of AI-enabled Siri in 2026, and a foldable iPhone launch in September 2026. Increased R&D spending for AI (+27% in FY26) and potential new product launches like Vision Pro 2 underscore future innovation and growth.

Key Decisions for Investors

• Consider maintaining or increasing exposure to AAPL given strong Q4 performance, robust Q1 guidance, and widespread analyst upgrades.
• Monitor the execution of new product cycles, particularly AI integration and the foldable phone, as these are critical for long-term growth and analyst price targets.
• Evaluate the impact of supply constraints on iPhone sales, which may shift revenue recognition but confirm underlying strong demand.