Daiwa's report noted that Apple's third-fiscal-quarter results for the period ending June 2026 exceeded market expectations, with strong revenue and earnings per share (EPS) performance. Adjusted EPS, excluding tariff refunds, slightly surpassed forecasts. Daiwa maintained its 'Outperform' rating for Apple and raised the target price from $325 to $335. During the reporting period, iPhone, Mac, and services revenue all increased. Management indicated strong product demand but noted supply constraints for advanced-node system-on-chips (SoCs), while internally acknowledging an underestimation of demand growth. However, Daiwa remains cautious about Apple's FY2027 outlook, given the rare iPhone growth in FY2026 and historical data showing a significant decline in performance the year following a super cycle. Additionally, the September price hike for new iPhones and rising memory costs may introduce uncertainties for demand and profitability.