Analysts were cautious heading into Apple’s latest earnings report but breathed a sigh of relief after the “Magnificent Seven” titan posted its biggest quarterly revenue growth since December 2021. In its fiscal third quarter, the iPhone maker earned $1.57 per share on $94.04 billion in revenue. That exceeds the $1.43 per share and revenue of $89.53 billion that analysts polled by LSEG had penciled in. Apple incurred $800 million in tariff costs during the quarter, which came under the $900 million the company had estimated in May. Apple CEO Tim Cook forecast $1.1 billion in tariff costs for the current quarter. Another bright spot in the report came from Apple’s success in Greater China. Sales rose 4% on an annual basis, while they had previously dropped for Apple’s previous two quarters in a row. Overall, analysts maintained their existing stances on Apple, and nearly all hiked their price targets. A few pointed to the company’s increased investments in artificial intelligence as a source of strength for the stock going forward. Here’s what analysts at some of the biggest shops on Wall Street had to say on the report. Morgan Stanley stands by overweight rating, raises price target to $240 from $235 Morgan Stanley’s updated target corresponds to an upside of 16% from here. “This was Apple’s strongest quarterly report/guide in 2+ years, with outperformance broad-based across Product/Services and regions. Historically, this would be a qtr where bulls get louder, but until clarity emerges on tariffs and regulation, we wouldn’t expect AAPL to break out.” Bank of America maintains buy rating, increases target price to $240 from $235 “Apple (AAPL) reported a much stronger quarter and guided ahead of consensus across most metrics. We view the strength in iPhone units as encouraging especially as we head into a form factor change in Sep 2025 (and again in Sep 2026). With increased focus on AI (incremental investments + potential M & A), Apple could set up well for a strong 2026 iPhone cycle. Despite adverse legal rulings across services, growth across the installed base remains robust and Services posted strong growth and margins again.” UBS reiterates neutral rating, lifts price target to $220 per share from $210 The bank’s forecast calls for upside of 6%. “Driven by about 1 million in iPhone pull-ins in the quarter and better upgrade rates, Apple reported June qtr results above our recently raised ests. However, the outlook for the H2:25 remains challenging given competitive headwinds in China, the potential for incremental Section 232 tariffs, and the risk that the DOJ changes the revenue agreement with Google when it is expected to rule in August.” Goldman Sachs maintains buy rating, lifts price target to $266 per share from $251 Analyst Michael Ng’s updated price forecast is 28% higher than Apple’s Thursday closing price. “AAPL’s F3Q25 EPS beat on better-than-expected iPhone sales, Services, and more muted tariff impacts … We raise our F2025/26/27 EPS by 3% on average to $7.40/$7.95/$9.04 on higher revenue outlook across iPhone & Services, partially offset by a step up in costs related to AI investments.” Barclays keeps underweight rating, raises price target to $180 per share from $173 Analyst Tim Long’s new target implies about 13% downside from Thursday’s close. “June-Q beat, led by higher iPhones and Macs with slightly better Services. We believe pull-ins and China subsidies helped the results. Sep-Q guidance is calling for MSD-HSD Y/Y growth, above Consensus. We remain Underweight on regulatory (including TAC), China, and AI risks.” Citi keeps buy rating, ups price target to $245 per share from $240 Analyst Atif Malik’s forecast is 18% above Apple’s Thursday closing price. “Apple outlook allayed investor fears on a Sep-Q revenue shortfall, post a pull forward positive impact on the Jun-Q from tariffs + higher levels of promotional intensity in China. Apple clarified the impact from pull forward was limited to ~1% (mostly concentrated in April in U.S.) with channel inventory also at the low end of their target range while outlook implies continued broad-based momentum in device upgrades and Services (despite recent App Store payment changes), albeit excluding potential impact from any Google TAC changes. Apple also noted higher levels of investments towards AI and left the door open for potential M & A to beef up AI offerings which we believe investors will view as a positive. Net-net, Apple’s fundamentals remain intact, and we believe a trio of product launches (Advanced Siri, Foldable Phone, Vision Pro 2) bodes well next year.” Evercore ISI reiterates outperform rating and price target to $250 Evercore ISI’s target equates to 20% upside. “Apple delivered a better than expected quarter and the Services growth and commentary around limited impact from the Epic ruling will chip away at part of the Services bear case. Stock likely remains relatively range bound as we await the more impactful ruling on the Google revenue sharing deal.” JPMorgan stands by overweight rating, raises price target to $255 from $250 Citi’s new price target implies a 23% upside going forward. “Apple surprised investors with results that defied seasonal trends and marked a significant acceleration in total company revenue growth, iPhone revenue growth as well as Mac revenue growth. Although there are specific drivers like China subsidies that can be attributed for some of the exceptional strength, at the same time the acceleration of iPhone revenue growth with only modest help from pull-forwards as outlined by the company is equally surprising, particularly for a quarter where historically the bigger concern has been consumers waiting for the next generation iPhone product launching in the Sep-Q … We are raising our estimates for FY25 following the print, but keep a cautious view by incorporating moderate amount of digestion in the iPhone 17 cycle, such that our out-year forecasts improve more modestly.”
