BofA Predicts Apple FY26 Q2 Earnings Beat

Bank of America analyst Wamsi Mohan raised the price target for Apple (AAPL) to $325 from $320 on April 14, 2026, while maintaining a Buy rating for the company. This adjustment comes ahead of Apple’s fiscal second-quarter earnings report, which is scheduled for release after the market closes on April 30, 2026.

The price target increase is based on the expectation that Apple will report strong results that exceed current market estimates. Bank of America forecasts that Apple will achieve revenue of $113 billion and earnings per share (EPS) of $2.00 for the second quarter of fiscal year 2026.

Drivers of Growth and Revenue

The bullish thesis from Bank of America rests on two primary pillars: the strength of iPhone demand and double-digit growth within the Services division. Analysts indicate that the market may be underestimating near-term results driven by these factors.

A significant catalyst for the iPhone segment is the expectation of a strong replacement cycle. This cycle is anticipated to be driven by hardware upgrades enabled by artificial intelligence, which are expected to prompt users to upgrade their devices.

Simultaneously, the Services division is seeing continued margin expansion. This segment provides recurring revenue streams that contribute to the company’s overall financial stability and growth. This growth is supported by Apple’s installed base of 2.5 billion active devices, which provides a structural foundation for the company to post consecutive all-time records in both Services and iPhone revenue.

Market Valuation and Institutional Sentiment

As of April 14, 2026, Apple stock was trading at $260.50. The new $325 price target from Bank of America suggests significantly more growth potential than the broader analyst community, as the current analyst consensus target stands at $296.33.

Institutional confidence in the company remains generally high, with 69 analysts maintaining either Buy or Strong Buy ratings. Bank of America further predicts that Apple will guide for continued growth in the following period, forecasting revenue growth of 10% to 15% year-over-year for the June quarter.

Identified Risks and Headwinds

Despite the positive outlook on revenue and hardware cycles, several headwinds persist that could impact Apple’s valuation and performance.

• Regulatory pressure: Apple continues to face scrutiny in the United States and the European Union regarding its App Store policies.
• Supply chain and geopolitics: There are ongoing concerns regarding potential supply chain disruptions or geopolitical tensions that could affect production in Asia.
• Insider activity: Data from the last six months shows significant insider selling, with 13 sales recorded and zero purchases.
• Institutional divestment: Some institutional players, such as Wealth Enhancement Advisory Services, have engaged in aggressive divestment of Apple holdings.

These factors, combined with broader macroeconomic concerns and inflationary pressures, represent the primary risks to the company’s current premium valuation. However, analysts believe that the stickiness of the Apple ecosystem and the strategy for AI integration will provide necessary tailwinds for the remainder of the fiscal year.