Key Takeaways
- Goldman Sachs reaffirmed its Buy recommendation and $330 valuation for Apple stock before the company’s April 30 quarterly results.
- Goldman’s Michael Ng projects fiscal Q2 2026 earnings per share of $2.00, topping consensus at $1.93.
- Shares have declined 4% this year amid rising memory chip costs driven by artificial intelligence demand.
- The tech giant secured 21% of worldwide smartphone sales in Q1 2026 — marking its first-ever Q1 market leadership.
- The June 8–12 WWDC conference is anticipated as the next key event, featuring a revamped Siri and potential iPhone Fold reveal.
With Apple’s quarterly report just days away, Goldman Sachs is doubling down on its optimistic outlook. Despite recent headwinds, the investment bank has reaffirmed its Buy recommendation and $330 valuation, with Michael Ng suggesting the current pullback presents a buying opportunity rather than cause for concern.
Shares of AAPL have slipped 4% since the beginning of the year, underperforming the S&P 500’s 2% advance during the same timeframe. The primary culprit has been escalating DRAM costs, which have climbed significantly since autumn 2025 as artificial intelligence applications strain memory chip availability.
For the fiscal second quarter, Ng anticipates earnings per share of $2.00, surpassing Wall Street’s $1.93 projection. His optimism stems from anticipated robust iPhone and Mac sales, margin performance exceeding expectations, and supportive foreign exchange dynamics.
Apple’s gross profit margin currently registers at 47.3% on a trailing twelve-month basis, demonstrating its ability to maintain pricing strength despite component inflation. The company is also securing mobile DRAM contracts proactively, which Goldman believes will safeguard both profitability and competitive position.
Service Revenue Stream Shows Resilience
Goldman forecasts 14% year-over-year Services revenue expansion, propelled by iCloud+, AppleCare+, and advertising platforms. While App Store momentum has been more measured — UBS estimated approximately 7% growth in the March quarter with stagnant U.S. performance — the overall Services portfolio continues its upward trajectory.
Bank of America independently lifted its Apple price objective to $325, pointing to robust iPhone momentum and likely quarterly outperformance. UBS maintained its Neutral stance with a $280 valuation.
Apple’s smartphone market position appears increasingly formidable. The company commanded 21% of global handset sales in Q1 2026 — unprecedented for a first-quarter period. iPhone 17 enthusiasm and trade-in initiatives fueled the expansion, with particularly strong showings across China, India, and Japan.
TSMC’s recent quarterly commentary highlighted premium smartphone strength, which Goldman interpreted as corroborating evidence for its Apple thesis. iPhone share gains in the Chinese market were also highlighted as encouraging.
Developer Conference and Foldable Device Speculation
Looking past the earnings event, market attention is shifting toward WWDC 2026, slated for June 8–12. The company is widely expected to introduce a reimagined, conversational Siri interface as part of its artificial intelligence strategy.
Device speculation is also intensifying. Goldman anticipates the Fall 2026 iPhone portfolio will feature the iPhone Fold, a frequently discussed foldable model that could establish an entirely new revenue stream for the company.
Cirrus Logic received designation as an Apple American Manufacturing Program partner alongside GlobalFoundries. Stifel responded by increasing its Cirrus Logic valuation to $175 while maintaining its Buy recommendation.
Analyst consensus on AAPL reflects a Moderate Buy rating, comprising 16 Buy recommendations, 8 Hold ratings, and 1 Sell. The mean price objective of $304.85 suggests approximately 12.8% appreciation potential from present levels.
Apple releases its quarterly results after market close on April 30.
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