Apple Set to Report Q4 Earnings Amid AI Feature Anticipation
Apple Inc. is poised to release its fiscal fourth-quarter earnings report after the market closes on Thursday, with Wall Street analysts closely watching for signs of how the tech giant’s new AI features might impact future iPhone demand.
Analysts expect Apple to report revenue of $94.36 billion and adjusted earnings per share of $1.60. The quarter includes two weeks of iPhone 16 sales, with Apple’s stock trading at $230.40, down 1.4% ahead of the announcement.
Investors are particularly interested in Apple’s guidance for the holiday quarter, traditionally the company’s strongest period. The focus is on how the recently introduced “Apple Intelligence” features, released six weeks after the iPhone 16 launch, might drive sales. More robust AI capabilities for the iPhone are anticipated early next year.
Bank of America advises looking beyond initial iPhone 16 sales to assess the longer-term impact of Apple Intelligence. The bank predicts increased iPhone demand as AI features become more sophisticated, projecting sales of 80 million iPhones during the holiday season. Bank of America maintains a “Buy” rating on Apple with a $256 price target.
JPMorgan, while expecting Apple to surpass revenue and profit estimates, anticipates a miss on holiday guidance. The firm notes a slower start for the iPhone 16 compared to its predecessor but maintains an “Overweight” rating with a $265 price target.
Wedbush Securities presents an optimistic outlook, predicting Apple will reach a $4 trillion market cap next year. The firm believes Apple is on the cusp of a supercycle for iPhone upgrades, driven by Apple Intelligence features. Wedbush rates Apple as “Outperform” with a $300 price target.
Goldman Sachs sees potential for Apple to exceed consensus revenue and EPS estimates, projecting $1.61 in earnings per share and $94.5 billion in revenue. The firm emphasizes the importance of upcoming AI and software features in driving future growth. Goldman Sachs maintains a “Buy” rating with a $275 price target.
As Apple prepares to unveil its latest financial results, the market eagerly awaits insights into how the company’s AI initiatives will shape its future performance and maintain its position as a leader in the tech industry.