Goldman Sachs hiked its price target on Apple to $320 from $279, while keeping its Buy rating intact, in the wake of the company’s Q4 earnings release.
Apple reported stronger-than-expected earnings per share for the fiscal fourth quarter, with a beat in Services revenue offsetting a miss in iPhone revenue. Goldman Sachs noted that iPhone demand was “very strong” with the revenue miss attributed to supply constraints rather than demand issues.
Apple provided first-quarter revenue growth guidance of 10-12% year-over-year, including double-digit iPhone revenue growth and approximately 14% Services revenue growth. The firm believes Apple is entering a “multi-year upgrade cycle” strengthened by upcoming AI software improvements, potential foldable iPhone introduction in 2026, and continued product ecosystem investments. This projected growth represents a significant acceleration from Apple’s last twelve months revenue growth of 5.97%.
Services revenue grew 15% year-over-year with acceleration across several key categories, which Goldman Sachs views as evidence of a growing iPhone installed base and increasing attachment rates for services like iCloud+, AppleCare, and Apple One.
Gross margins were 47.2% despite $1.1 billion in tariff costs, with Apple guiding for what Goldman Sachs expects to be record gross margins of 47-48% in the first quarter of fiscal 2026, reflecting product mix advantages and growing use of in-house technologies.
MacDailyNews Take: Apple surpassing the $100 billion mark in a fiscal fourth quarter is a big milestone!
Here are Apple’s highest revenue totals for each fiscal quarter (all but Q2 2020 occurred this year):
• Q125 (Oct–Dec): $124.3 billion
• Q222 (Jan–Mar): $97.3 billion
• Q325 (Apr–Jun): $94.0 billion
• Q425 (Jul–Sep): $102.5 billion
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Like I said in another thread, this is BS. There is no where for the economy to run. PE values are all high to froth level right now. I hope they do not waste lowering interest rates now, because the economy will absorb them with no effect and it will just run up inflation.
Apple PE is now at 41.09 which is at froth levels. This now incorporates the 8% bump in revenue, which the market already priced in. So the PE is still way on the high side, and even though you can feel the stock wants to run, there is no where to run because the revenues just didnt go up enough to allow it.
APPL PE of 29 or lower, that’s bargain territory
APPL PE of 30-32 PE is on the low side, decent buy territory
APPL PE of 33-36 – the “healthy” zone, HODL
APPL PE of 37-39 is the high side
APPL PE of 40+ is froth <— you are here
So all these high stock targets, right now are total BS. Maybe they are foreseeing some continued growth in the next few quarters, and I hope there is continued good growth, then yea. But for now, we are deep in froth.