Key Takeaways
- Bank of America’s Wamsi Mohan increased Apple’s price target to $325 from $320 while maintaining a Buy rating
- Analyst forecasts Q2 FY26 revenue at $113B and earnings per share of $2.00, surpassing consensus estimates
- iPhone unit forecast for Q2 upgraded to 60 million units, with Services segment anticipated to grow 14% YoY
- Apple captured 21% of worldwide smartphone shipments in Q1 2026, reflecting a 5% year-over-year increase
- Analyst consensus stands at Moderate Buy for AAPL with a mean price target of $304.84
Wamsi Mohan, an analyst at Bank of America, increased his Apple (AAPL) price target to $325 from a previous $320 this Tuesday while reaffirming his Buy recommendation. This adjustment arrives in anticipation of Apple’s fiscal second quarter 2026 financial results, scheduled for release after trading hours on April 30.
Shares of AAPL have declined approximately 5% since the start of the year. Investor sentiment has been dampened by tariff uncertainties, rising component expenses, and questions surrounding consumer expenditure patterns.
Mohan contends that Wall Street’s current projections undervalue Apple’s upcoming quarterly performance. His revenue forecast stands at $113 billion with earnings per share of $2.00 — compared to the Street’s consensus figures of $109 billion in revenue and $1.93 EPS.
For the March quarter, his iPhone shipment estimate reaches 60 million units. This represents an upward revision from his previous projection, underpinned by observations of persistent robust demand patterns.
Services Segment Maintains Growth Trajectory
The Services division is projected to post 14% year-over-year growth in Q2, maintaining a pace comparable to the December quarter results. This projection holds despite weakness in worldwide App Store revenue — which expanded only 7% YoY during the March period.
Evercore ISI highlighted similar App Store deceleration concerns, attributing renewed softness to gaming categories. Meanwhile, UBS, maintaining a Neutral stance, referenced the same 7% App Store metric while observing stagnant growth in the United States market.
Apple secured 21% of global smartphone shipments in Q1 2026, representing a 5% increase from the corresponding period last year. Robust iPhone 17 demand combined with effective supply chain management across China, India, and Japan contributed to this performance.
Looking Ahead: Upcoming Catalysts
Beyond the imminent earnings announcement, Mohan identified multiple upcoming catalysts. These encompass an anticipated fresh share repurchase program, the WWDC developer conference scheduled for June, and a foldable iPhone model expected to debut this autumn.
He additionally highlighted an upgraded Siri featuring integrated Gemini AI capabilities as a potential catalyst for device upgrades. However, Nikkei Asia has documented technical obstacles with the foldable iPhone development that may delay its market introduction.
Looking toward Q3 FY26, Mohan anticipates modest margin compression attributable to component pricing and product portfolio composition. His Q3 guidance projects $106 billion in revenue and $1.82 EPS — both exceeding Street consensus of $103 billion revenue and $1.74 earnings per share.
BofA’s 18% YoY revenue growth projection for Q2 exceeds Apple’s official guidance corridor of 13% to 16%.
Analyst consensus on AAPL currently registers as Moderate Buy — comprising 14 Buy ratings, 8 Hold ratings, and 1 Sell rating. The mean price target stands at $304.84, suggesting approximately 18% potential upside from present trading levels.
Apple’s trailing twelve-month gross margin reached 47.33%. BofA’s Q3 gross margin forecast of 47% to 48% corresponds closely with this historical performance metric.
Bank of America additionally reconfirmed its Buy rating following the MacBook Neo product launch, which the firm anticipates will generate additional revenue streams and contribute positively to earnings per share.
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