Apple Earnings Prompt Price-Target Lifts
Apple earnings for the March quarter spurred analysts to raise price targets and authorized a $100B buyback, lifting focus on Services and AI.
KEY TAKEAWAYS
- Apple posted a record March quarter with $111.2 billion revenue and expanded gross margin.
- Company authorized a $100.0 billion buyback and raised its quarterly dividend.
- Analysts lifted price targets into the $365-$400 range, citing Services revenue and AI monetization.
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Apple Inc. (AAPL) reported March-quarter earnings that strengthened investor sentiment as the company expanded shareholder returns and analysts raised price targets, citing Services revenue and AI monetization as key drivers of sustained profit growth.
Record Quarter and Capital Returns
For the fiscal second quarter ended March 29, 2026, Apple reported revenue of $111.2 billion, up 17.0% year over year, driven by iPhone sales and Services with double-digit growth across all regions. Diluted earnings per share rose 22.0% to $2.01. Gross margin expanded to 49.3%, supported by a favorable product mix and Services revenue.
The company authorized a $100 billion share repurchase program and raised its quarterly dividend by 4%, reinforcing its cash-generation profile and commitment to shareholder returns.
Analyst Targets and Outlook
Apple guided for third-quarter revenue growth of 14.0% to 17.0% year over year, exceeding consensus estimates. The analyst consensus rates the stock as a Moderate Buy, with 17 Buy, 9 Hold, and 1 Sell ratings, and a consensus price target near $305, ranging roughly from $281 to $350.
Evercore ISI raised its price target to $365 from $330 and outlined a $500 bull case, projecting low-to-mid teens earnings and free cash flow compounding driven by Services growth and rising premium iPhone average selling prices despite modest unit growth.
Wedbush increased its target to $400 from $350, citing an AI-driven growth inflection as a significant upside to long-term monetization. Tigress Financial lifted its target to $375 from $305 and maintained a Strong Buy rating.
Analysts noted risks including supply-chain headwinds for Mac products, margin pressure from higher input and research and development costs, and potential memory shortages.
The record quarter, expanded capital returns, and price-target upgrades reflect broad analyst optimism that Services and AI will sustain profit growth, while margin and supply constraints remain the main near-term risks.
