Goldman Sachs reassesses Apple stock ahead of earnings

Apple is heading into its April 30 net report, with investors focused connected iPhone demand, outlooks, and what’s adjacent for its AI strategy nether its upcoming caller CEO.

The iPhone maker's banal has lagged this year, down astir 0.64% twelvemonth to day compared with a 4.67% summation for the S&P 500 index, Yahoo Finance information shows.

Concerns astir rising representation costs and the imaginable deed to smartphone margins person weighed connected sentiment, adjacent arsenic the institution continues to station rosy maturation successful its business.

In its past net report, Apple announced excessively beardown income of the iPhone, peculiarly successful China. Quarterly gross from iPhone surged 23% twelvemonth implicit twelvemonth to $85.27 billion, driven by beardown income of the iPhone 17 models. iPhone income relationship for astir 60% of Apple’s full revenue.

Next week's study volition besides beryllium the archetypal since Apple’s caller enactment modulation announcement. Investors volition look for signs of stableness and direction.

Beyond earnings, the institution has a engaged calendar, with its Worldwide Developers Conference successful June expected to bring updates connected AI features, followed by a large caller iPhone merchandise aboriginal successful the year.

Goldman Sachs is rethinking its outlook for Apple stock. Here’s what the steadfast sees:

Goldman Sachs reiterated a $330 terms people with a bargain standing connected the shares, arguing that caller concerns astir margins and request whitethorn beryllium overstated, according to a caller probe enactment sent to TheStreet.

The slope pointed to a crisp emergence successful representation prices arsenic a cardinal root of capitalist anxiety.

“With DRAM (Dynamic random-access memory) prices experiencing a monolithic surge since Fall 2025 driven by an AI-induced proviso shortage, concerns astir smartphone gross borderline pressures and pricing-driven request demolition and constituent shortages person driven underperformance,” the steadfast wrote.

In the January net call, Apple's existent CEO Tim Cook acknowledged that the rising spot prices volition person a “bit much of an impact” connected the company’s Q2  gross margin. Still, Apple forecast a gross borderline of 48% to 49% for the 4th to beryllium reported.

Related: Morgan Stanley resets Apple banal forecast earlier earnings

Goldman said Apple is amended positioned to negociate those pressures. “We judge concerns for Apple are overly pessimistic fixed its overmuch stronger comparative position,” the analysts added.

The steadfast pointed to Apple’s outperformance successful high-end smartphones (highlighted successful TSMC’s latest net telephone and  iPhone stock gains successful China), and reports that the institution is "securing arsenic overmuch mobile DRAM connected the marketplace portion keeping pricing competitive."

Goldman expects iPhone gross to scope astir $56.6 cardinal for the quarter, up 21% from a twelvemonth earlier and up of statement estimates.

The steadfast expects Apple to study gross of $110.3 billion, up 16% from a twelvemonth earlier and astatine the precocious extremity of the company’s guidance, on with net per stock of $2.00, supra the $1.93 statement estimate.

Beyond hardware, Apple’s services concern remains a cardinal portion of the story.

Goldman expects services gross to turn astir 14% twelvemonth implicit year, supported by subscriptions specified arsenic iCloud+ and AppleCare+, on with pricing increases and advertizing expansion.

“Results should besides beryllium flattered by favorable forex (foreign exchange), arsenic good arsenic beardown underlying Services gross growth,” the steadfast said.

Related: Fidelity sends blunt connection connected S&P 500 aft abrupt rebound

Even with slower App Store growth, Goldman sees different areas picking up the slack. “We judge product-related Services drivers specified arsenic iCloud+ and AppleCare+, on with anterior terms increases connected AppleTV+ and coagulated advertizing performance, should enactment different 4th of teens Services gross growth,” the analysts said.

Looking ahead, investors are focused connected aboriginal catalysts for Apple stock.

Apple’s Worldwide Developers Conference successful June is expected to bring much details connected its AI plans, including updates to Siri. The institution has been slower than immoderate peers to rotation retired generative AI features, and immoderate advancement could assistance displacement sentiment.

Later successful the year, Apple is expected to motorboat a caller iPhone lineup, which Goldman described arsenic the "most innovative" successful years, with the instauration of a foldable model. That could thrust a caller upgrade cycle, particularly arsenic older devices conflict to enactment newer AI features.

However, risks remain, including imaginable weaker user demand, proviso concatenation disruptions, and contention crossed some devices and services.

"Apple generated ~50% of its gross from iPhones (F2025), which is highly babelike connected purchases driven by upgrades," the analysts warned.

Apple banal closed astatine $271.06 connected April 24.

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This communicative was primitively published by TheStreet connected Apr 25, 2026, wherever it archetypal appeared successful the Investing section. Add TheStreet arsenic a Preferred Source by clicking here.