Bank of America has updated its fiscal 2026 projections for Apple Inc, anticipating revenues of $469.8 billion and earnings per share of $8.63. This marks a slight increase from previous estimates of $468.7 billion in revenue and $8.61 in earnings. Analysts from the firm have maintained a 'Buy' rating and a price target of $380 for Apple stock.
In an interview with The Wall Street Journal, CEO Tim Cook indicated that the company might need to increase product prices due to rising memory costs. Following these comments, Bank of America adjusted its pricing strategy, raising its forecast for the Pro and Pro Max iPhone models by an additional $100 while keeping estimates for the base model and iPad Air unchanged. The firm's analysis suggests that Apple is positioned to gain market share in lower-priced segments while maintaining higher prices in premium categories.
Bank of America also foresees that the increased component costs could exert a 100-basis-point negative impact on product gross margins. However, stable services margins and supply chain efficiencies may alleviate some of this pressure. They believe that Apple's robust supplier relationships and financial strength will enable the company to secure long-term component availability and continue to outperform broader market trends in shipment growth.