Overview
Bank of America reiterated a Buy rating on Apple Inc., setting a price target of $380 per share in a note released on Monday.
Fiscal Q3 Forecast
BofA models fiscal third‑quarter revenue at $109 billion and earnings per share at $1.89, surpassing Street consensus estimates of $108 billion revenue and $1.87 EPS. The forecast implies a 16% year‑over‑year revenue increase, which lies within Apple’s guidance range of 14‑17%.
Key Focus Areas
Analyst Wamsi Mohan highlighted that investors will concentrate on component cost inflation, gross‑margin durability, and the fact that this will be Tim Cook’s final earnings call as chief executive.
Product and Margin Outlook
BofA incorporated a more conservative outlook due to the staggered launch of iPhone models—Pro, Pro Max and Fold slated for September, with the base model and Air expected in March. The firm expects product gross margins to fall sequentially in the June and September quarters before rebounding to 38.5% in the December quarter as higher‑priced iPhones enter the market, describing the near‑term pressure as “transitory.”
Services Segment
For the services business, BofA projects 14% year‑over‑year revenue growth in the third quarter. App Store revenue growth is expected to decelerate to 3.2% YoY from 9.8% in the prior quarter, a slowdown that BofA believes will be offset by strength in iCloud and licensing revenues.
Outlook for Q4 Calendar 2026
The bank cautioned that the staggered iPhone launch cadence could generate volatility in the second half of calendar 2026. It models fourth‑quarter revenue at $106 billion and EPS at $1.88, both below Street estimates of $114 billion revenue and $2.01 EPS.