Analysts on AAPL: how observers feel about Apple's Q4 financials

Analysts have weighed in on Apple's Q4 2026 financial results, which were released on Monday. The company reported revenue of $114.5 billion, which exceeded both the record quarterly revenue and Wall Street consensus of $113.4 billion. iPhone revenue reached $57.58 billion, up year-over-year, while Mac and iPad revenue remained flat at $10.79 billion and $6.23 billion, respectively.

Wearables, Home, and Accessories saw growth to $8.3 billion, and Services maintained its growth at $31.57 billion. A $1 billion payment from reciprocal tariff refunds also contributed to the results.

Despite enthusiastic remarks from new CEO John Ternus, analysts noted that Mac and iPad shipments would be constrained through the end of 2026, and iPhone demand wouldn't be met for some time. However, Apple expects strong performance in its typically blockbuster Q1 results following the holiday sales period. Analysts predict year-over-year revenue growth between 7% and 10%, potentially reaching $158 billion.

Despite the positive quarterly performance, investors reacted negatively, causing the stock to drop by $8.79 per share shortly after the earnings call. Analysts' forecasts and expectations were adapted based on Apple's results, with some adjusting their price targets downward. JP Morgan raised its Product revenue forecasts for 2027 while maintaining an Overweight rating with a price target of $355, down from $360.

Evercore sees Apple as Outperform, with a target of $380, highlighting potential challenges with margins, EPS power, and the memory crisis.

Counterpoint reported a standout iPhone quarter, with higher Pro models and price increases contributing to a first-time average selling price over $1,000. The company's ability to sustain double-digit revenue growth highlights the strength of its Apple Silicon ecosystem, premium product positioning, and loyal customer base, particularly in the premium market. However, analysts remain cautious about memory prices and the potential impact on the smartphone market.