Quick Read
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Apple posted record revenue of $109B last quarter, with iPhone generating $54B and Services $31B, dwarfing the new MacBook’s $10B contribution.
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AAPL has gained 27% year to date versus 11% for the S&P 500, yet trades 4% above the analyst consensus price target of $332.
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Tim Cook flagged memory pricing as a ‘100-year flood’ and announced his retirement, handing leadership to incoming CEO John Ternus.
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Apple (NASDAQ:AAPL) trades at $344.63, and its newest MacBook does little to change the investment case. Earnings are looming, and the stock trades near its 52-week high of $351.73, so the valuation deserves a close look.
Apple sells iPhone, Mac, iPad and wearables. It then generates recurring revenue from more than 2.5 billion active devices through Services such as the App Store, iCloud and Apple Pay. The touchscreen OLED MacBook Pro makes headlines, yet Mac produced $10.4 billion last quarter. iPhone brought in $54.3 billion and Services $30.7 billion.
Execution carried the stock to this level. June-quarter revenue rose 16% to a record $109.4 billion, and EPS of $2.02 beat the $1.89 consensus.
iPhone 17 and Siri AI Are Doing the Heavy Lifting
The iPhone 17 family drove 22% iPhone growth. Mac grew 29% as MacBook Neo pulled schools off Windows and Chromebooks. Services set records in every category, and paid subscriptions topped 1.5 billion.
Consensus calls for fiscal 2027 EPS of $9.5635, up from $8.8199 for fiscal 2026. Siri AI, which left management “off the charts excited,” could expand Services monetization. A $100 billion buyback authorization adds steady support.
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Memory Costs and a Premium Multiple Put the Rally at Risk
At 40x trailing earnings and a PEG of 3, Apple trades above its consensus target. July’s dated margin guidance of 47% to 48% included about one point of tariff refunds, below that quarter’s 50.1%. Tim Cook called memory pricing a “100-year flood.”
