TLDR
- Apple stock hovers near $256 after Q1 2026 results showed $143.76 billion revenue, beating estimates by 4.32%
- iPhone 17 lineup drove 23.4% sales growth while company maintained 29.3% net income margin
- Analysts increased current quarter EPS forecast to $1.88, up 5.3% in past 30 days
- Stock carries 33.1 P/E ratio as Zacks rates shares Buy despite premium valuation to peers
- Fiscal 2026 earnings expected at $8.41 per share, representing 12.7% growth from prior year
Apple (AAPL) stock continues trading below $270 as investors weigh strong quarterly results against valuation metrics. The tech giant delivered another earnings beat, but questions linger about future returns at current prices.
Q1 2026 revenue reached $143.76 billion, crushing the $137.81 billion consensus estimate. The 15.7% year-over-year increase extended Apple’s streak of revenue beats to four quarters. Earnings per share came in at $2.84 versus $2.40 in the prior year period.
The iPhone 17 drove performance. Sales of the device increased 23.4% compared to last year. This growth shows Apple’s core product maintains strong market demand.
Margins tell an impressive story. Net income margin hit 29.3% while gross margin reached 47.33%. These profitability levels underscore the company’s pricing strength and cost management.
Estimate Revisions Turn Positive
Wall Street analysts keep raising their numbers. The current quarter EPS estimate of $1.88 reflects 13.9% projected growth. That figure climbed 5.3% over the last 30 days alone.
Full-year fiscal 2026 estimates now project $8.41 in earnings per share. The forecast jumped 3.1% in the past month. Looking ahead to fiscal 2027, analysts expect $9.29 per share, up 10.4% from fiscal 2026.
Revenue projections show continued expansion. The current quarter estimate sits at $108.88 billion, implying 14.2% growth. Fiscal 2026 revenue should reach $461.12 billion based on consensus. That represents a 10.8% increase from the prior year.
Apple beat both revenue and earnings estimates in each of the trailing four quarters. This consistency has helped drive upward estimate revisions.
Premium Price Tag Sparks Debate
The stock’s 33.1 price-to-earnings ratio gives some investors pause. At this valuation, shares trade above many technology peers. Zacks assigns Apple a Value Style Score of F, reflecting the premium multiple.
Questions also surround Apple’s artificial intelligence efforts. The company has moved cautiously in AI compared to rivals. Siri updates have faced delays, adding to investor concerns about competitive positioning.
Despite valuation worries, Zacks rates Apple a Rank #2 Buy. The rating weighs heavily on earnings estimate momentum. Rising forecasts often precede stock price gains according to the firm’s research.
Recent price action shows modest gains. Apple shares returned 0.1% over the past month while the S&P 500 dropped 1.7%. The stock sits well off its 52-week high of $288.62 but significantly above the low of $169.21.
The company’s $3.8 trillion market cap makes it one of the world’s largest businesses. Dividend yield currently stands at 0.41%. Average trading volume runs about 49 million shares daily.
Apple stock last changed hands at $255.98 as of February 13, 2026.
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