Apple (AAPL) Is About to Report Q3 Earnings Tomorrow. Here Is What to Expect
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Meanwhile, revenues are expected to increase by about 4% from the year-ago quarter to $89.36 billion, according to data from the TipRanks Forecast page. Notably, Apple has an encouraging earnings surprise history. The company has beaten earnings estimates for nine straight quarters.
Analyst's Views Ahead of AAPL's Q3 Earnings
Ahead of Apple's Q3 print, Wall Street analysts are split on the stock's outlook. Among the cautious analysts, Barclays Top analyst Tim Long reiterated an Underweight (Sell) rating on the stock with a price target of $173. He expects a slight beat for the June quarter, driven by favorable FX and early iPhone/Mac pull-ins due to tariff concerns. However, he remains skeptical about Apple's performance in the second half of the year.
The five-star analyst also expressed concern over Apple's AI positioning, calling its WWDC announcements 'underwhelming' and noting that Apple Intelligence hasn't generated strong excitement. He believes Apple's long-term AI strategy remains unclear and less ambitious compared to peers, which may limit growth.
On the contrary, another five-star analyst, Wamsi Mohan of Bank of America, maintained a Buy rating on Apple with a $235 price target, citing expected margin recovery and upcoming product launches.
While he sees near-term risks from tariffs and weak sentiment around AI, Mohan expects gross margins to improve with the launch of higher-priced products like the slim iPhone. He also expects strong demand from new product launches, including iPhones and M4 MacBooks. Overall, Mohan expects Apple to post in line results or slightly better than expected.
Options Traders Anticipate a Minor Move
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 4.29% move in either direction.
What Is the Price Target for Apple?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 13 Buys, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. The average AAPL stock price target is $228.11, implying upside potential of 7.97%.
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