Bank of America expects Apple to surpass Wall Street expectations when it reports fiscal third-quarter results on July 30, marking Tim Cook’s final earnings call as CEO.
In a note released Monday, BofA analyst Wamsi Mohan maintained a Buy rating on the stock and a $380 price target. The firm is modeling revenue of $109 billion and earnings per share (EPS) of $1.89, comfortably ahead of consensus estimates of $108 billion in revenue and $1.87 in EPS. That would represent approximately 16% year-over-year revenue growth, exceeding Apple’s own guidance range of 14-17%.
Investor attention heading into the report is likely to focus on three key areas: component cost inflation, the durability of gross margins, and the implications of Cook’s departure from the CEO role.
BofA noted that product gross margins are expected to decline sequentially in both the June and September quarters due to the staggered launch schedule of the next iPhone lineup. Pro, Pro Max, and Fold models are slated for September, while the base model and Air are not expected until March. The firm views the near-term margin pressure as “transitory,” forecasting a rebound to 38.5% in the December quarter as the new devices launch at higher prices.
On the services side, BofA projects 14% year-over-year growth in the third quarter. While App Store revenue growth has slowed to 3.2% from 9.8% in the previous quarter, the firm anticipates strength in iCloud and Licensing to more than offset the slowdown.
MacDailyNews Note: Looking further ahead, the bank adopted a more cautious stance for the second half of calendar 2026. It modeled fourth-quarter revenue at $106 billion and EPS at $1.88, below Street forecasts of $114 billion and $2.01, citing potential volatility from the new split iPhone launch cadence.
Despite the tempered longer-term outlook, BofA’s overall message remains positive, reinforcing confidence in Apple’s ability to deliver a solid beat in the upcoming report.
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That is fantastic news, Let’s hope so and believe so, AAPL $380.