This week’s reporting docket is headlined by many notable firms, a listing that features beloved Magazine 7 member Apple AAPL. Shares have had a detrimental displaying in 2026 thus far, down roughly 5% and underperforming relative to the S&P 500.
However can the tech titan’s outcomes push some life again into shares? Let’s take a better have a look at revisions and some different key metrics to keep watch over.
Revisions Present Positivity
The EPS outlook for the tech titan has remained secure and constructive over current months, with the present Zacks Consensus EPS estimate of $2.65 up 1.1% because the starting of final November. Gross sales revisions have adopted an identical path, with the $137.4 billion consensus estimate up 1.2% over the identical interval.
As proven under, the corporate’s prime line has proven regular enchancment over current years, with its high-flying development days largely behind it. The inventory generally displays a ‘safer’ tech play given its measurement and maturity, partly explaining why it typically trades at wealthy valuation multiples regardless of not posting outsized development. Shares at present commerce at a 30.0X ahead 12-month earnings a number of, reflecting a 30% premium relative to the S&P 500.
Picture Supply: Zacks Funding Analysis
Key Apple Metrics to Watch
A key metric to look at within the launch is Apple’s Companies outcomes, which have commonly been sturdy and reached report ranges all through current durations. Apple’s Companies phase represents all of the recurring, non-hardware income tied to its ecosystem, resembling Apple Music, Apple Pay, App Retailer, and Apple TV+, for a couple of examples.
Our consensus Companies estimate stands simply at $30.0 billion, reflecting a 14% YoY climb. Under is a chart illustrating AAPL’s Companies revenues on a quarterly foundation, with our consensus estimate additionally blended in.
Picture Supply: Zacks Funding Analysis
Remember that Alphabet GOOGL and AAPL introduced a multi-year collaboration beneath which the subsequent technology of Apple Basis Fashions will likely be based mostly on Google’s Gemini fashions and cloud know-how.
Notably, AAPL has but to have its massive AI second. The response to Apple Intelligence thus far has been combined at finest, with a number of extremely anticipated options, like an improved Siri, delayed throughout the preliminary rollout.
We’ll undoubtedly hear loads in regards to the collaboration throughout theearnings name particularly given the present sentiment surrounding its AI ventures. In fact, this leads again to iPhone gross sales, which we forecast to succeed in $77.6 billion all through the interval. The iPhone nonetheless stays the biggest gross sales contributor, however the Companies phase’s development has helped scale back the reliance on this important phase.
Under is a chart illustrating the corporate’s iPhone gross sales on a quarterly foundation, with our consensus estimate additionally blended in. iPhone gross sales spike throughout the interval as a result of September launch.
Picture Supply: Zacks Funding Analysis
Backside Line
Beloved Apple AAPL is gearing as much as reveal its subsequent set of quarterly outcomes this week, with many different notable firms slated to report.
Analysts have saved their revisions constructive and secure, a key improvement heading into the discharge. Whereas shares are a bit wealthy, the corporate has traditionally traded at a steep a number of given its constant and cash-generating nature. Under is a chart illustrating its free money circulation on a quarterly foundation.
Picture Supply: Zacks Funding Analysis
Traders ought to maintain an in depth eye on commentary surrounding the current cope with Alphabet GOOGL given its weak AI story thus far, with iPhone and Companies outcomes additionally reflecting key metrics.
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Apple Inc. (AAPL) : Free Inventory Evaluation Report
Alphabet Inc. (GOOGL) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
