Key Takeaways
- Bank of America analyst Wamsi Mohan increased Apple’s price target to $325 from $320 while maintaining a Buy rating
- Analyst forecasts Q2 FY26 revenue at $113B and earnings per share of $2.00, surpassing consensus expectations
- Q2 iPhone shipments estimated at 60 million units, with Services segment anticipated to grow 14% year-over-year
- Apple captured 21% of worldwide smartphone shipments in Q1 2026, representing 5% annual growth
- Analyst community rates AAPL as Moderate Buy with consensus price target of $304.84
Bank of America’s Wamsi Mohan has elevated his price objective for Apple (AAPL) shares to $325 from a previous $320 target on Tuesday, while reaffirming his Buy recommendation. This adjustment arrives just before Apple unveils its fiscal second quarter 2026 financial results, scheduled for release after trading hours on April 30.
Shares of AAPL have declined approximately 5% since the beginning of the year. Market anxieties surrounding tariff policies, escalating component expenses, and consumer spending patterns have pressured the technology giant’s valuation.
According to Mohan’s assessment, Wall Street analysts are undervaluing Apple’s quarterly performance. His financial model anticipates Q2 revenue reaching $113 billion with earnings per share of $2.00 — figures that exceed the Street’s consensus projections of $109 billion in revenue and $1.93 EPS.
The analyst’s iPhone shipment projection for the March-ending quarter stands at 60 million units. This represents an upward revision from his earlier estimate, backed by observations of sustained robust consumer demand.
Services Segment Maintains Growth Momentum
The Services division is projected to deliver 14% year-over-year revenue expansion in Q2, maintaining a growth rate comparable to the December quarter performance. This forecast holds despite continued softness in worldwide App Store revenue — which increased only 7% YoY during the March quarter.
Evercore ISI highlighted the identical App Store deceleration, attributing it to renewed weakness in gaming categories. UBS, maintaining a Neutral stance, similarly referenced the 7% App Store metric while observing stagnant growth in the United States market.
Apple secured 21% of worldwide smartphone shipments in Q1 2026, marking a 5% increase from the previous year. Robust demand for the iPhone 17 lineup combined with effective supply chain management across China, India, and Japan contributed to this performance.
Looking Ahead: Upcoming Catalysts
Mohan identified several forthcoming catalysts extending beyond the imminent earnings announcement. These include an anticipated announcement of a new share repurchase program, the WWDC developer conference scheduled for June, and a foldable iPhone model projected for autumn release.
He also highlighted an upgraded Siri featuring integrated Gemini AI capabilities as a potential catalyst for upgrade cycles. However, Nikkei Asia has documented technical obstacles related to the foldable iPhone development that may delay its market introduction.
For the third fiscal quarter of 2026, Mohan anticipates modest margin contraction attributable to component pricing pressures and product mix dynamics. His Q3 forecast calls for revenue of $106 billion and EPS of $1.82 — both exceeding Street consensus of $103 billion in revenue and $1.74 earnings per share.
BofA’s revenue growth projection of 18% YoY for Q2 surpasses Apple’s official guidance range of 13% to 16%.
The Street’s overall rating on AAPL stands at Moderate Buy — comprising 14 Buy ratings, 8 Hold ratings, and 1 Sell rating. The consensus price target of $304.84 suggests approximately 18% potential upside from present trading levels.
Apple’s gross profit margin across the trailing twelve months registered at 47.33%. BofA’s Q3 gross margin forecast of 47% to 48% closely aligns with this historical performance.
Bank of America additionally reaffirmed its Buy rating following the MacBook Neo product launch, which the investment firm anticipates will generate additional revenue streams and contribute positively to earnings per share.
