Apple's fiscal Q4 2026 results revealed a 12% increase in revenue to $114.48 billion, surpassing expectations of $113.39 billion, and earnings per share rose 14% to $2.10, exceeding the forecast of $1.99. However, the company's guidance for the upcoming quarter raised concerns, particularly regarding a slowdown in services revenue growth and high memory costs impacting margins.
Despite these challenges, Apple has maintained a strong position in the market, with a year-to-date stock increase of 25%, outperforming major competitors like Amazon and Microsoft. The company repurchased $24 billion in stock during the quarter, reflecting its strong free cash flow.
The launch of the foldable iPhone Duo has generated significant demand, although its revenue impact will be seen in future quarters. CEO John Ternus emphasized the iPhone's role in AI integration, which could enhance user engagement.
Looking ahead, Apple expects revenue growth of 7% to 10% for the holiday quarter, above the Street's 5.8% estimate, but services revenue growth is projected to slow to 8% to 9%, below the anticipated 10%. This combination of factors has led to a cautious outlook, with analysts raising the price target to $360 from $340 per share while maintaining a hold rating due to the stock's high valuation