Apple Inc. (NASDAQ:AAPL) shares rallied Friday after the company's second-quarter results and stronger-than-expected guidance reassured Wall Street that iPhone demand, services momentum and gross margin resilience remain intact.
- AAPL stock is approaching new highs. See the chart and price action here.
The Cupertino, California-based stock guided for fiscal third-quarter revenue growth of 14% to 17%, above Street expectations, and gross margin of 47.5% to 48.5%.
Shares were trading higher Friday, rising 4.3% to $282.95 and reaching an intraday high of $287.22, putting AAPL stock within striking distance of its 52-week high of $288.62, per Benzinga Pro data.
The move reflected a quarter that checked several boxes bulls had been waiting for: accelerating iPhone demand, stronger Services growth, better-than-feared margins and a June-quarter revenue outlook well above Wall Street expectations.
Analysts Weigh In
- J.P. Morgan analyst Samik Chatterjee reiterated an Overweight rating and $325 price target. Apple "clears margin hurdle again," Chatterjee said, citing stronger product demand and supply management. Apple continues "moving the bar higher on gross margins," with June-quarter guidance suggesting Apple is gaining share across product lines.
- Wedbush analyst Dan Ives said the June guide "crushes the Street," maintaining an Outperform rating and $350 price target. The iPhone was "the star of the quarter,” he added. With the "iPhone 17 firing on all cylinders, China a clear tailwind, the June guide well ahead of the Street, and [John] Ternus about to take the wheel heading into WWDC… it’s all about the AI strategy."
- Goldman Sachs analyst Michael Ng kept a Buy rating and raised the 12-month price target to $340 from $330. Ng said results showed "strong iPhone, Mac, and Services momentum," alongside Apple's ability to "effectively manage cost inflation," though he flagged memory costs as a growing margin headwind.
- D.A. Davidson analyst Gil Luria maintained a Neutral rating and $270 price target, saying it was a "Good Time for Changing of the Guard" as Apple prepares for Tim Cook's transition to chairman and John Ternus becoming CEO.
- Rosenblatt analyst Barton Crockett maintained a Neutral rating and raised the price target to $276 from $268. Crockett called the quarter "impressively strong, as expected," but said that at about 31 times earnings, Apple's strength is "reasonably discounted in the shares."
- Needham analyst Laura Martin maintained a Hold rating with no price target, taking a more cautious view despite the beat. Martin said Apple's "historical asset-light, outsourced supply chain faces rising execution risks" as hyperscaler AI spending tightens component supply and could drive "rising prices and/or delays."
The Takeaway
Overall, analysts came away more confident in Apple's near-term demand, margin execution and June-quarter setup, especially around iPhone 17, Services and China.
Still, the reaction was not uniformly bullish. Some firms are warning that valuation, memory costs, AI investment needs, and supply constraints could limit further upside.
AAPL Price Action: Apple stock was up 4.31% at $283.05 at the time of publication Friday, according to Benzinga Pro data.
Photo: Skorzewiak / Shutterstock
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