Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Goldman Sachs has raised its price target on Apple (NASDAQ:AAPL) to $279.00 from $266.00 while maintaining a Buy rating ahead of the company’s fiscal fourth-quarter earnings report. The stock, currently trading near its 52-week high with a market capitalization of $3.89 trillion, appears overvalued according to InvestingPro analysis.
The investment bank expects Apple to exceed revenue and earnings estimates for the quarter, driven by strong iPhone performance with projected 10% year-over-year growth compared to the 8% consensus forecast. Mac sales are also anticipated to show robust 12% year-over-year growth as the PC refresh cycle continues. With earnings scheduled for October 30th, InvestingPro data shows the company maintaining strong financial health with a comprehensive score of "GOOD" and trailing twelve-month revenue of $408.6 billion.
Goldman Sachs forecasts Apple’s gross margins to reach 46.5%, which includes the impact of guided tariff costs amounting to $1.1 billion. Services revenue is expected to maintain 13% year-over-year growth despite slowing App Store spending trends. This margin projection aligns with Apple’s current gross margin of 46.68%, as reported by InvestingPro, which offers 15+ additional key insights about Apple’s financial performance.
Looking ahead to fiscal 2026, the firm anticipates continued strength in iPhone demand, supported by U.S. carrier competition and the expected launch of a foldable iPhone 18 model.
Goldman Sachs notes ongoing debate points include the sustainability of iPhone demand given potential pull-forward purchasing during fiscal 2025 due to trade policy uncertainty, as well as risks to App Store revenue growth from third-party payment options.
In other recent news, Apple is expected to surpass Wall Street’s revenue estimate of approximately $102 billion, driven by strong early performance of the iPhone 17 lineup and continued growth in its services segment, according to Wedbush. The firm has maintained its Outperform rating and a price target of $310.00 on Apple. Similarly, Evercore ISI has reiterated an Outperform rating with a price target of $290.00, anticipating Apple to exceed consensus estimates for the September quarter, and potentially guide higher for the December quarter. In other developments, Apple is facing a new antitrust complaint from a group of 55 Chinese iPhone and iPad users, who allege the company abuses its market dominance. The complaint claims Apple restricts app distribution and payments to its platforms while charging high commissions. Additionally, Apple is investigating outages affecting Apple TV+ and Apple Music services, with over 11,700 outages reported for Apple TV. Looking ahead, Apple plans to release a revamped MacBook Pro with a touch-screen OLED display in late 2026 or early 2027. The new MacBooks will feature thinner frames and be powered by Apple’s M6 processors.
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