Executive Summary
- Bank of America’s Wamsi Mohan increased Apple’s price target to $325 from $320 while maintaining a Buy rating
- Analyst forecasts Q2 FY26 revenue at $113B and EPS at $2.00, surpassing consensus estimates
- iPhone shipment forecast for Q2 increased to 60 million units, while Services revenue is anticipated to climb 14% YoY
- Apple captured 21% of the worldwide smartphone market in Q1 2026, representing a 5% year-over-year increase
- Analyst community maintains a Moderate Buy stance on AAPL with a mean price target of $304.84
On Tuesday, Wamsi Mohan, a senior analyst at Bank of America, lifted his price objective for Apple (AAPL) from $320 to $325 while reaffirming his Buy recommendation. This adjustment arrives just before Apple reports its fiscal second quarter 2026 results, scheduled for release after trading ends on April 30.
Shares of AAPL have declined approximately 5% since the start of the year. The stock has faced pressure from uncertainties surrounding tariff policies, rising production expenses, and questions about consumer purchasing power.
According to Mohan, Wall Street analysts are being too conservative in their quarterly projections. His financial model anticipates Q2 revenue reaching $113 billion with earnings per share of $2.00 — figures that exceed the Street’s consensus expectations of $109 billion in revenue and $1.93 in EPS.
For the quarter ending in March, Mohan’s estimate calls for 60 million iPhone units sold. This represents an upward revision from his previous projection, reflecting his assessment of persistent robust consumer demand.
Services Division Remains Growth Engine
The Services segment is projected to deliver 14% year-over-year growth in Q2, maintaining a similar expansion rate to what was observed in the December quarter. This momentum persists despite a deceleration in worldwide App Store revenue — which increased only 7% YoY during the March period.
Evercore ISI also highlighted the same App Store deceleration, attributing it to renewed softness in the gaming category. Meanwhile, UBS, maintaining a Neutral stance, referenced the 7% App Store growth figure while observing stagnant performance in the United States.
Apple secured 21% of global smartphone shipments in Q1 2026, marking a 5% improvement compared to the previous year. Robust demand for the iPhone 17 lineup combined with effective supply chain management across China, India, and Japan contributed to this performance.
Future Catalysts on the Horizon
Beyond the upcoming earnings announcement, Mohan identified several potential growth drivers. These include an anticipated announcement of a new share repurchase program, the Worldwide Developers Conference scheduled for June, and a foldable iPhone model expected to debut this fall.
The analyst also highlighted an upgraded Siri assistant featuring integrated Gemini AI capabilities as a possible catalyst for device upgrades. However, reporting from Nikkei Asia has indicated technical obstacles with the foldable iPhone development that may delay its market introduction.
Looking toward Q3 FY26, Mohan anticipates modest margin pressure stemming from component pricing and product mix dynamics. His Q3 projections call for revenue of $106 billion and EPS of $1.82 — both exceeding Wall Street’s consensus estimates of $103 billion and $1.74, respectively.
BofA’s revenue growth forecast of 18% YoY for Q2 exceeds Apple’s official guidance range of 13% to 16%.
The analyst community’s consensus rating for AAPL stands at Moderate Buy — comprising 14 Buy ratings, 8 Hold ratings, and 1 Sell rating. The mean price target of $304.84 suggests approximately 18% potential upside from current trading levels.
Apple has maintained a gross margin of 47.33% over the trailing twelve-month period. BofA’s gross margin estimate for Q3 of 47% to 48% corresponds closely with historical performance.
Bank of America also reaffirmed its Buy recommendation following the introduction of the MacBook Neo, which the firm believes will contribute additional revenue and provide a favorable impact on earnings per share.
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