Apple's quarter is not perfect. But with enough to like, we raised our price target
We remain "own it, don't trade it" on Apple stock.
Apple has set the bar for holiday quarter earnings with expectations of a blockbuster performance in Q1 2027. In a recent earnings call, CFO Kevan Parekh shared forward-looking statements indicating the company could shatter records once again. Apple CFO Kevan Parekh has shared that revenue growth for the upcoming quarter is expected to sit between 7% and 10% year-over-year.
Parekh also hinted that this strong performance is reflective of constrained supply, with revenue potentially reaching up to $158.18 billion. Services revenue is also anticipated to grow between 8% and 9% year-over-year. Gross margins are projected to range between 45% and 46%, a slight decrease attributed to rising memory costs and expenses related to the rollout of Siri AI.
Operating expenses are expected to fall between $20.4 billion and $20.8 billion, with a tax rate of approximately 17%. Despite the potential for growth that may not meet investor expectations, Apple is poised to break records once more.
Written by urgent.news from AppleInsider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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