A report from Goldman Sachs reveals that Apple's service division posted better-than-expected results in the fourth quarter of fiscal year 2025. While iPhone revenue saw a 6% year-on-year increase, falling marginally short of projections, the service sector's revenue outperformed estimates. The impressive gross profit margins across both product and service lines propelled the overall gross profit beyond expectations. Apple anticipates a 10% to 12% revenue growth for the first quarter of fiscal year 2026, with iPhone revenue projected to climb by double digits, both exceeding the expectations of the market and Goldman Sachs. This performance is anticipated to underpin the stock price. Moreover, Apple's AI development trajectory continues to be strong, with intentions to roll out an updated Siri iteration in the coming year and to forge additional AI partnerships. Goldman Sachs has established a $279 target price for Apple and reaffirms its 'Buy' recommendation.