Wall Street analysts have generally given a thumbs up to Apple’s latest quarterly earnings, despite iPhone sales not meeting expectations. In the first quarter of fiscal 2025, Apple’s overall earnings and revenue exceeded forecasts, showing a 4% rise in total revenue. Even though iPhone sales fell short and slipped slightly compared to the previous year, with a notable 11.1% drop in China, the mood remains upbeat. CEO Tim Cook pointed out that markets with Apple’s intelligence rollout saw better year-over-year performance for the iPhone 16 series compared to those without the technology. Responding to potential repercussions from President Donald Trump’s proposed tariffs on Chinese imports, Cook mentioned in a call with analysts that they are closely monitoring the situation, without providing further details. Trump had recently announced that his administration is considering a 10% tariff on Chinese goods, possibly to take effect by Saturday. In response, Apple’s shares saw a more than 3% increase in premarket trading on Friday.
Here’s a rundown of insights from top Wall Street analysts following these results:
JPMorgan: The firm maintains an "overweight" rating with an updated price target of $270 per share from the previous $260. Analyst Samik Chatterjee predicts a 13.6% upside from Thursday’s closing. He notes that while it’s early days for subsidies in China, iPhones eligible for these subsidies, coupled with reduced channel inventory, will likely help ease the region’s revenue decline, which stood at 11% year-over-year in the first quarter. Chatterjee anticipates low- to mid-single-digit revenue growth in the March quarter, despite foreign exchange challenges.
Goldman Sachs: Recommending a "buy" rating, analyst Michael Ng has set a target of $294 per share, signaling a potential 23.7% upside. Ng points to Apple’s guidance of successful second-quarter 2025 revenue growth, with services growing in double digits, possibly boosted by upcoming releases like the iPhone SE4 and new MacBooks and iPads. He believes these factors will reinforce the favorable investment narrative surrounding an iPhone upgrade cycle.
Morgan Stanley: With an "overweight" rating and a price target raised to $275 per share, analyst Erik Woodring acknowledges a 15.7% potential upside. He highlights an "in-line December quarter" and a "better-than-feared March quarter" that pave the way for future growth, particularly with the April iOS launch and June’s WWDC being key events. Woodring emphasizes that although China remains unpredictable, Apple Intelligence is enhancing iPhone performance in areas where it’s available, setting the stage for growth in fiscal year 2026.
Evercore ISI: Analyst Amit Daryanani offers an "outperform" rating with a $260 target, which represents a 9.4% upside. Daryanani had previously set the target at $250. Despite setbacks in China due to inventory adjustments and macroeconomic challenges, he expects that Apple Intelligence’s rollout and economic incentives will bolster demand.
TD Cowen: With a "buy" rating and a price target unchanged at $290 per share, analyst Krish Sankar indicates a 22% potential upside from Thursday. Sankar notes that although concerns about China demand were prominent, Apple’s commentary on the outperforming initial regions where iPhone AI features are launched should boost market sentiment.
Bank of America: Analyst Wamsi Mohan has set a "buy" rating with a target of $265 per share, suggesting an 11.5% potential upside. Mohan previously projected a $253 target. He notes that while there are widespread concerns about iPhone demand, Apple’s guidance for the March quarter exceeded expectations, supported by Apple Intelligence’s role in driving upgrades, as demonstrated by stronger sales in regions where it has already launched.
