In the fourth quarter of 2025, Apple reported unprecedented figures in revenue, net income, and earnings per share, highlighting its exceptional operational execution. The company’s services division has emerged as a key profit driver, contributing 28% of total revenue and boasting a gross margin of 75.3%, indicating a shift in its business structure.
Despite ongoing investments in artificial intelligence and a recovery in the Chinese market, AAPL is trading at a forward price-to-earnings ratio of 33, significantly higher than its historical average of 23.5. This elevated valuation suggests limited potential for growth and minimal margin for error.
For conservative investors, current market conditions may warrant a cautious approach to AAPL stock, with recommendations leaning towards selling or selectively accumulating shares only if prices approach $195.