AAPL latest earnings beat expectations. Here’s what analysts had to say

Analysts on Wall Street are responding favorably to Apple’s latest quarterly results , even though its iPhone revenue came in weaker than expected. For its fiscal 2025 first quarter, the iPhone maker’s earnings and revenue beat analysts’ expectations, with overall revenue rising 4%. However, iPhone sales missed estimates and slightly fell year over year, while overall sales in China dropped 11.1% in the quarter. Apple CEO Tim Cook said: “During the December quarter, we saw that in markets where we had rolled out Apple intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple intelligence.” On any potential impact from President Donald Trump’s tariff strategy, the chief executive also said in an earnings call with analysts: “We are monitoring the situation and don’t have anything more to add than that.” Last week, Trump revealed that his team is considering a 10% tariff on Chinese goods, a move that could be implemented as soon as Saturday. Apple shares gained more than 3% in the premarket Friday. Below are comments from analysts at some of the biggest Wall Street firms following the results. JPMorgan: overweight rating, price target at $270 per share Analyst Samik Chatterjee’s target, up from $260, calls for 13.6% upside from Thursday’s close. “While it is still early days for subsidies in the China market, iPhones qualifying for the recent subsidies as well as a depleted channel inventory will help the company moderate the revenue decline of -11% y/y exhibited in F1Q in the region and is likely driving the company’s confidence in guiding for low- to mid-single digit revenue growth again in the March-Q, while overcoming incremental FX headwinds (of -250 bps).” Goldman Sachs: buy rating, price target at $294 per share Analyst Michael Ng’s forecast implies 23.7% upside from here. “AAPL guided to F2Q25E revenue growth of LSD-MSD% yoy (GSe: +6%) with Services revenue growth of low double-digits, which in our view, likely includes the benefit from the to-be-announced iPhone SE4, as well as new MacBooks and iPads. The strong F2Q25E outlook and commentary on Apple Intelligence’s impact on iPhone demand to-date helps strengthen the favorable investment thesis around an iPhone upgrade cycle.” Morgan Stanley: overweight rating, price target at $275 per share Analyst Erik Woodring’s target, which he raised from $273, reflects 15.7% upside ahead. “An in-line Dec Q and better-than-feared Mar Q create a cleaner catalyst path into the April iOS 18.4 launch & June’s WWDC. China remains a key wildcard, but Apple Intelligence is bolstering iPhone performance in regions where available, setting up a return to iPhone growth in FY26.” Evercore ISI: outperform rating, price target at $260 per share Analyst Amit Daryanani’s outlook implies 9.4% upside potential. He previously had a price target of $250. “While China was clearly disappointing – AAPL attributed ½ the drop in sales to Channel inventory adjustments and remainder to macro/competitive environment – though expectation would be as Apple Intelligence is rolled out along with economic incentives it should help drive demand higher (vs. Dec).” TD Cowen: buy rating, price target at $290 per share Analyst Krish Sankar’s target, up from $290, calls for around 22% upside from Thursday’s close. “China demand was not as bad as feared given holiday price discounting and share loss headlines. Critically, AAPL comments indicating the initial regions where iPhone AI features have been rolled out are outperforming other geos should support sentiment on the stock.” Bank of America: buy rating, price target at $265 per share Analyst Wamsi Mohan’s outlook implies 11.5% upside potential. Mohan previously had a price target of $253. “Despite a lot of investor worries we see around iPhone demand, guidance for the Mar. quarter was better than feared. Our thesis remains that Apple Intelligence will continue to drive upgrades (as evidenced by the better sales performance in F1Q in those regions where Apple Intelligence has already been launched).”