Key Takeaways
- BofA Securities analyst Wamsi Mohan increased Apple’s price target to $325 from $320 while maintaining a Buy rating
- The analyst forecasts Q2 FY26 revenue reaching $113B with EPS of $2.00, surpassing consensus estimates
- iPhone unit projections for Q2 elevated to 60 million units, while Services segment anticipated to grow 14% YoY
- Apple captured 21% of worldwide smartphone market share in Q1 2026, representing a 5% annual increase
- Analyst community maintains Moderate Buy stance on AAPL with mean price target of $304.84
Bank of America Securities analyst Wamsi Mohan elevated his price objective for Apple (AAPL) to $325 from the previous $320 on Tuesday, maintaining his Buy recommendation. This adjustment arrives in advance of Apple’s fiscal second quarter 2026 results, scheduled for release following market close on April 30.
AAPL shares have declined approximately 5% since the beginning of the calendar year. Worries surrounding tariff policies, elevated input expenses, and consumer spending patterns have created headwinds for the equity.
Mohan anticipates the Street’s estimates fall short of Apple’s actual performance. His financial model projects Q2 revenue reaching $113 billion with EPS of $2.00 — compared with Wall Street’s aggregate forecast of $109 billion revenue and $1.93 earnings per share.
His iPhone unit projection for the March quarter stands at 60 million devices. This represents an increase from his earlier estimate, backed by observations of sustained robust demand.
Services Segment Maintains Growth Trajectory
Services revenue projections indicate 14% year-over-year expansion in Q2, maintaining a pace comparable to the December quarter results. This growth persists despite worldwide App Store sales showing modest momentum — advancing just 7% YoY during the March quarter.
Evercore ISI highlighted this identical App Store deceleration, attributing renewed softness in gaming categories. UBS, maintaining a Neutral position, similarly referenced the 7% App Store metric while observing stagnant U.S. expansion.
Apple secured 21% of the worldwide smartphone market during Q1 2026, climbing 5% from the previous year. Robust iPhone 17 demand combined with supply chain performance across China, India, and Japan fueled this outcome.
Future Catalysts on the Horizon
Mohan identified multiple forthcoming catalysts beyond the quarterly earnings release. These encompass an anticipated fresh share repurchase authorization, the WWDC developer conference scheduled for June, and a foldable iPhone model expected during autumn.
He additionally highlighted an upgraded Siri featuring integrated Gemini AI as a prospective upgrade catalyst. However, Nikkei Asia has documented engineering obstacles with the foldable iPhone that may delay its market introduction.
For Q3 FY26, Mohan anticipates margins experiencing slight compression attributed to component expenses and product composition. He projects Q3 revenue of $106 billion with EPS of $1.82 — exceeding Street projections of $103 billion revenue and $1.74 earnings per share.
BofA’s revenue growth forecast of 18% YoY for Q2 exceeds Apple’s own guidance bracket of 13% to 16%.
The analyst community consensus on AAPL establishes a Moderate Buy rating — comprising 14 Buy recommendations, 8 Hold positions, and 1 Sell rating. The mean price objective stands at $304.84, suggesting approximately 18% appreciation potential from present trading levels.
Apple’s gross margin across the trailing twelve months measured 47.33%. BofA’s Q3 gross margin forecast range of 47% to 48% corresponds closely with that historical performance.
BofA additionally reaffirmed its Buy recommendation following the MacBook Neo product launch, which the firm anticipates will generate incremental revenue streams and deliver a favorable EPS contribution.
