Apple Inc. (NASDAQ:AAPL) may be heading into one of its strongest quarters ever, thanks to surging iPhone 17 sales, growing services revenue, and expanding enterprise adoption. Analysts and investors alike are turning bullish on the Apple stock forecast, expecting fiscal Q1 2026 to set new performance records.
iPhone 17 Demand Drives Apple’s Best-Ever Quarter
Apple’s guidance for the December quarter signals a year-over-year (YoY) revenue growth of 10% to 12%. If achieved, this would push Q1 2026 sales to around $138 billion, surpassing Wall Street’s consensus of $132.3 billion and last year’s $124.3 billion.
Citi analyst Atif Malik described this cycle as Apple’s “most powerful upgrade wave ever,” with users upgrading from multiple iPhone generations at once. The combination of loyal customers and first-time buyers continues to strengthen Apple’s already sticky ecosystem—a key factor behind the optimistic Apple stock forecast.
CEO Tim Cook credited “off-the-chart” demand for iPhone 17 models and strong global store traffic, even as supply constraints persist. Apple also anticipates that growth in China will rebound after a 4% decline last quarter, further boosting Q1 expectations.
Services Segment: Apple’s Hidden Growth Engine
Beyond hardware, Apple’s Services division continues to be the company’s long-term profit engine. In the September quarter, Services revenue rose 15% to $29 billion, marking an all-time record. For the full fiscal year, Services generated over $100 billion, up 14% YoY.
With Apple’s installed base of active devices hitting record highs across all regions, recurring revenue opportunities are expanding rapidly. Apple Pay, iCloud, and App Store subscriptions continue to deliver double-digit growth—an encouraging sign for the Apple stock forecast.
Customer satisfaction remains remarkably strong: 98% for iPhone, 96% for Mac, and 98% for iPad in the U.S. These loyalty levels translate directly into repeat purchases, ecosystem stickiness, and expanding market share.
Institutional Adoption Boosts Long-Term Stability
Enterprise growth is also accelerating. BMW (OTCMKTS:BMWKY) rolled out tens of thousands of iPhones to employees, Capital One (NYSE:COF) expanded its MacBook Air fleet, and Purdue University established a Vision Pro research hub. These deployments strengthen Apple’s foothold in business and education sectors, creating durable revenue streams beyond consumer products.
Apple’s manufacturing and AI investments are also paying off. The new Houston facility, dedicated to building servers for Apple Intelligence, highlights the company’s push into artificial intelligence. Over the next four years, Apple plans to invest $600 billion in U.S. operations, focusing on advanced manufacturing and chip design—moves that will enhance innovation and long-term competitiveness.
Is Apple Stock Still Undervalued?
Apple’s market cap recently surpassed $4 trillion, making it the most valuable company in the world. Over the past 12 months, AAPL stock has gained 20%, and over the past decade, it’s soared more than 900% with dividends reinvested.
Analysts expect Apple’s revenue to climb from $416.16 billion in 2025 to $577 billion by 2030, with earnings per share rising from $7.46 to $13.77. Despite a forward P/E ratio of 32.8x—above its 10-year average of 22.2x—many believe Apple’s premium valuation is justified by its innovation pipeline and resilient growth.
Out of 41 analysts tracking the stock, 22 rate AAPL as a “Strong Buy,” and the average price target sits at $259.39, slightly below its current price of around $271. However, several analysts, including Citi, see further upside, with a revised target of $315, representing a potential 16% gain.
Bottom Line: The Apple Stock Forecast Looks Bright
Between soaring iPhone 17 demand, a thriving Services business, and major AI and manufacturing investments, Apple is positioned for another record-breaking quarter. While its valuation is high, the Apple stock forecast remains overwhelmingly positive—reflecting investor confidence in Apple’s brand power, customer loyalty, and strategic innovation.
If current trends hold, the next quarter could truly be Apple’s best ever—and another milestone in its decades-long growth story.
Featured Image: Megapixl© Bedo
