TLDR
- BofA analyst Wamsi Mohan raised his Apple price target from $320 to $325, keeping a Buy rating
- Mohan projects Q2 FY26 revenue of $113B and EPS of $2.00, both above Wall Street consensus
- iPhone unit estimate for Q2 raised to 60 million, with Services revenue growth expected at 14% YoY
- Apple holds a 21% global smartphone market share in Q1 2026, up 5% year-over-year
- Wall Street holds a Moderate Buy consensus on AAPL with an average price target of $304.84
Bank of America analyst Wamsi Mohan raised his price target on Apple (AAPL) to $325 from $320 on Tuesday, keeping his Buy rating intact. The move comes ahead of Apple’s fiscal Q2 2026 earnings, due after market close on April 30.
AAPL is down around 5% year-to-date. Concerns around tariffs, higher input costs, and consumer spending have weighed on the stock.
Mohan believes the Street is underestimating Apple’s quarter. He models Q2 revenue of $113 billion and EPS of $2.00 — versus Wall Street’s consensus of $109 billion and $1.93.
His iPhone unit estimate for the March quarter sits at 60 million. That’s a bump from his prior forecast, supported by what he sees as continued strong demand.
Services Still a Key Driver
Services revenue is expected to grow 14% year-over-year in Q2, roughly in line with the December quarter pace. That holds even as global App Store sales remain soft — up just 7% YoY in the March quarter.
Evercore ISI flagged that same App Store slowdown, pointing to renewed weakness in gaming. UBS, which holds a Neutral rating, also cited the 7% App Store figure while noting flat U.S. growth.
Apple took 21% of the global smartphone market in Q1 2026, up 5% from the prior year. Strong iPhone 17 demand and supply chain execution in China, India, and Japan drove the result.
What’s Coming Next
Mohan flagged several upcoming catalysts beyond the earnings print. These include an expected new share buyback authorization, the WWDC developer event in June, and a foldable iPhone expected in the fall.
He also pointed to an enhanced Siri with integrated Gemini AI as a potential upgrade driver. That said, Nikkei Asia has reported engineering challenges with the foldable iPhone that could push back its launch.
For Q3 FY26, Mohan expects margins to compress slightly due to component costs and product mix. He guides Q3 revenue to $106 billion and EPS of $1.82 — still ahead of Street estimates of $103 billion and $1.74.
BofA’s revenue growth model of 18% YoY for Q2 sits above Apple’s own guidance range of 13% to 16%.
Wall Street’s consensus on AAPL sits at Moderate Buy — 14 Buys, 8 Holds, and 1 Sell. The average price target is $304.84, implying around 18% upside from current levels.
Apple’s gross margin over the last twelve months was 47.33%. BofA’s Q3 gross margin projection of 47% to 48% aligns closely with that figure.
BofA also reiterated its Buy rating following the launch of the MacBook Neo, which the firm expects to drive incremental revenue and a positive EPS impact.
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