Based on a research report issued by Goldman Sachs, Apple's earnings per share (EPS) for the fourth quarter of fiscal year 2025 surpassed market estimates. This was largely due to the robust performance of its services division, which compensated for the relative weakness in its iPhone business. Although the demand for iPhones continued to be strong, supply chain limitations resulted in a sequential drop in channel inventory levels, consequently causing revenues to fall below initial projections.

Apple's management team anticipates that revenues for the first quarter of fiscal year 2026 will experience a year-on-year growth of between 10% and 12%, driven by substantial increases in both iPhone sales and services revenue. Goldman Sachs interprets this outlook as exceeding market expectations, providing further evidence of the sustained strong demand for iPhones. Consequently, the investment bank has revised its average EPS forecasts for fiscal years 2026 to 2028 upwards by 3%. Additionally, it has raised the target price for Apple's stock from $279 to $320 and reaffirmed its 'Buy' recommendation.