Key Takeaways
- Bank of America’s Wamsi Mohan increased Apple’s price target to $325 from $320 while maintaining a Buy recommendation
- Analyst forecasts Q2 FY26 revenue of $113B and earnings per share of $2.00, surpassing consensus estimates
- iPhone shipment forecast for Q2 increased to 60 million units, while Services segment expected to grow 14% YoY
- Apple captured 21% of worldwide smartphone shipments in Q1 2026, representing a 5% annual increase
- Analyst community rates AAPL as Moderate Buy with a mean price target of $304.84
Wamsi Mohan, an analyst at Bank of America, elevated his price objective for Apple (AAPL) to $325 from $320 on Tuesday while reaffirming his Buy recommendation. This adjustment arrives in advance of Apple’s second-quarter fiscal 2026 financial results, scheduled for release following the market close on April 30.
AAPL shares have declined approximately 5% since the beginning of the year. Worries surrounding tariff policies, elevated component costs, and consumer spending patterns have pressured the equity.
Mohan contends that Wall Street analysts are setting the bar too low for Apple’s quarterly performance. His financial model projects Q2 revenue reaching $113 billion with earnings per share of $2.00 — compared to analyst consensus estimates of $109 billion and $1.93.
For the March quarter, his iPhone shipment projection stands at 60 million units. This represents an upward revision from his previous estimate, backed by evidence of sustained robust consumer demand.
Services Segment Maintains Momentum
The Services division is anticipated to deliver 14% year-over-year growth in Q2, maintaining roughly the same tempo as the December quarter results. This projection holds despite weakness in worldwide App Store revenue — which expanded only 7% YoY during the March period.
Evercore ISI highlighted this identical App Store deceleration, attributing it to renewed softness in the gaming category. UBS, maintaining a Neutral stance, similarly referenced the 7% App Store number while observing stagnant growth in the United States.
Apple secured 21% of worldwide smartphone shipments in Q1 2026, climbing 5% versus the previous year. Robust iPhone 17 demand combined with effective supply chain management across China, India, and Japan fueled this performance.
Looking Forward
Mohan identified multiple upcoming catalysts extending beyond the quarterly earnings announcement. These encompass an anticipated new share repurchase authorization, the WWDC developer conference scheduled for June, and a foldable iPhone device expected to debut in the autumn.
He additionally highlighted an upgraded Siri platform incorporating integrated Gemini AI as a prospective sales driver. However, Nikkei Asia has documented technical obstacles with the foldable iPhone development that might delay its market introduction.
For Q3 FY26, Mohan anticipates margins will experience minor compression stemming from component expenses and product portfolio composition. His Q3 guidance projects revenue of $106 billion and EPS of $1.82 — nevertheless exceeding Street consensus of $103 billion and $1.74.
BofA’s revenue expansion model of 18% YoY for Q2 surpasses Apple’s own guidance framework of 13% to 16%.
The Wall Street consensus rating on AAPL stands at Moderate Buy — comprising 14 Buy ratings, 8 Hold ratings, and 1 Sell rating. The mean price objective reaches $304.84, suggesting approximately 18% appreciation potential from present trading levels.
Apple’s gross profit margin across the trailing twelve months measured 47.33%. BofA’s Q3 gross margin forecast range of 47% to 48% corresponds closely with this historical performance.
BofA additionally confirmed 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.
