TLDR
- Goldman Sachs analyst Michael Ng expects Apple to beat Q3 revenue and earnings expectations with an 11% Services growth
- Apple stock closed at $214.15, down 0.12% daily, with earnings scheduled for July 31, 2025
- Wall Street projects Q3 earnings of $1.43 per share and revenues of $89.1 billion, up 2% and 4% respectively
- The company recently launched an online store in Saudi Arabia with plans for a physical location in 2026
- Apple maintains a $3.2 trillion market cap with analyst price targets ranging from $140 to $275
Goldman Sachs is betting big on Apple’s upcoming quarterly report. Analyst Michael Ng thinks the tech giant will surprise investors when it releases Q3 results on July 31.
Ng kept his Buy rating on the stock and maintained his $251 price target. That represents a 17% jump from current trading levels.
The analyst ranks 994 out of more than 9,880 analysts tracked by TipRanks. His track record shows a 55% success rate with an average return of 11.1% per rating over one year.
Apple closed Wednesday at $214.15 on the NASDAQ, slipping 0.12% for the day. After-hours trading saw the stock dip slightly to $213.99.
The stock has traded between $169.21 and $260.10 over the past 52 weeks. Apple shares are down 14% year-to-date, leaving investors hungry for good news.
Services Revenue Expected to Shine
Ng expects Apple’s Services division to grow 11% year-over-year in the third quarter. App Store spending remains robust despite new rules allowing payments outside the platform.
The Services segment has become a key profit driver for Apple. It includes revenue from the App Store, iCloud, Apple Music, and other digital offerings.
Strong Services growth helps offset slower hardware sales cycles. The division typically carries higher profit margins than physical products.
Hardware Momentum Across Product Lines
The Goldman analyst sees strength across Apple’s entire hardware lineup. iPhones, Macs, iPads, and wearables should all contribute to solid growth numbers.
Better gross margins are expected to help results. Ng pointed to easing tariff-related costs and foreign exchange headwinds as positive factors.
Looking forward, the analyst feels optimistic about iPhone demand over the next year. U.S. carrier promotions should help drive sales.
New product launches like Apple Intelligence features could boost interest. The rumored iPhone 17 Air and foldable iPhone 18 models have analysts excited.
Wall Street expects Apple to report earnings of $1.43 per share for Q3. That would mark a 2% increase from the same quarter last year.
Revenue projections sit at $89.1 billion according to TipRanks data. The figure represents roughly 4% year-over-year growth.
Apple’s market cap hovers around $3.2 trillion. The company pays a dividend yield of approximately 0.47% based on trailing twelve months.
Trailing twelve-month earnings per share came in at $7.09. That puts the price-to-earnings ratio at 30.2 times.
The company recently launched an online store in Saudi Arabia. Apple plans to open a physical retail location there in 2026 as part of its global expansion efforts.
Analyst price targets for Apple range widely from about $140 to $275. This spread reflects both optimism and caution about the company’s prospects.
TipRanks shows Apple with a Moderate Buy consensus rating. The rating comes from 13 Buy recommendations, 10 Hold ratings, and one Sell over the past three months.
The average price target of $227.27 suggests 6.13% upside potential from current levels. However, trade and tariff risks remain concerns for some analysts.
Regulatory scrutiny in the UK and EU continues to create uncertainty. Apple faces pressure on App Store policies and potential changes to its business model.
The company’s AI initiatives and plans for Apple Intelligence features will likely draw attention during the earnings call. Investors want to see how Apple competes in the artificial intelligence space.
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