Apple (AAPL) will release its quarterly results on Thursday, and Wall Street expects the numbers to show that the company can drive a new iPhone upgrade cycle even without launching major AI features. Analysts say strong early demand for the iPhone 17 lineup, which debuted on September 19, may help Apple deliver solid holiday-season guidance.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The company’s latest iPhones feature sharper displays, larger storage options, and faster chips. These updates have attracted buyers in key markets, including the U.S. and China. Although the July–September quarter included only a few days of iPhone 17 sales, analysts believe the early strength points to a strong December quarter, which is typically Apple’s most profitable period.
Shares of Apple gained 24% in the third quarter, marking the company’s best performance in more than two years. It also became the third firm ever to reach a $4 trillion market value. However, Apple’s stock still trails those of the other “Magnificent Seven” companies this year, partly because it has been slower to roll out new AI features.
Analysts Expect Solid Growth and Look for AI Clarity
According to data compiled by LSEG, Wall Street expects Apple to post $102.17 billion in revenue for the September quarter, up 7.6% from last year, and earnings of $1.77 per share. iPhone sales are projected to reach $50 billion, up 8.6% from the same period last year, setting a record for the quarter.
Research firm Counterpoint estimates that iPhone 17 sales in the first 10 days were 14% higher than last year’s model in both the U.S. and China, with the Pro versions leading demand. However, interest in the thinner iPhone 17 Air has been limited due to its $1,000 price tag and single camera.
Bank of America’s top analyst, Wamsi Mohan, recently reiterated a Buy rating on Apple and raised his price target to $320 from $270. He expects Apple’s earnings per share to more than double by 2030, supported by new product categories such as AI-based eyewear and smart home devices.
Mohan said Apple’s brand strength and loyal customer base give it a long-term edge as it builds AI capabilities. Still, some industry observers believe the company must move faster to compete with rivals such as Samsung Electronics (SSNLF), which has already integrated AI tools into its devices.
Bob O’Donnell, president of TECHnalysis Research, said Apple faces challenges in retaining top AI talent and defining a clear strategy. The company has reportedly delayed the rollout of its AI-powered Siri until 2026, a move that may keep investors focused on how Apple plans to close the gap.
Looking Ahead
Apple is expected to highlight progress in iPhone 17 Pro sales and may provide new guidance for the December quarter. The results will also give investors a better sense of how Apple’s hardware performance balances against its delayed AI plans.
As eMarketer analyst Jacob Bourne noted, “Apple is riding high into earnings with better-than-expected iPhone 17 sales in both the U.S. and China, buoying it back to top-smartphone-provider status.” Yet, he added that questions about its position in AI remain open. For now, Apple’s strong iPhone demand is helping it regain momentum heading into its most important season of the year, even as the company works to show investors that its AI ambitions are not far behind.
Is AAPL Stock a Buy?
On the Street, AAPL still enjoys the backing of most analysts with a Moderate Buy consensus rating. The average AAPL stock price target stands at $264.07, suggesting a 1.83% downside from the current price.
