Should You Buy Apple (AAPL) Stock With Analysts Raising Estimates?

TLDR

Table of Contents

Apple stock currently trades under $270 following Q1 2026 revenue of $143.76 billion, up 15.7% year-over-year
iPhone 17 sales surged 23.4% as analysts raised earnings estimates for current quarter to $1.88 per share
Company posted 29.3% net income margin and exceeded analyst expectations for fourth straight quarter
Zacks assigns Buy rating despite P/E ratio of 33.1 raising valuation concerns among investors
Fiscal 2026 revenue projected at $461.12 billion with EPS estimates climbing 3.1% in past month

Apple (AAPL) stock sits below $270 after delivering another quarter of growth that topped Wall Street expectations. The question for investors: does the current price offer value or are shares fully priced?

Apple Inc., AAPL

The company reported Q1 2026 revenue of $143.76 billion, beating the consensus estimate of $137.81 billion by 4.32%. Revenue climbed 15.7% from the prior year period. Earnings per share reached $2.84, up from $2.40 a year earlier and 7.17% above analyst projections.

iPhone 17 sales powered the results. The product line saw revenue jump 23.4% year-over-year. This performance demonstrates continued consumer demand for Apple’s flagship device.

Profitability remains strong. The company posted a net income margin of 29.3% in the latest quarter. Gross margin came in at 47.33%. These figures reflect Apple’s pricing power and operational efficiency.

Wall Street Raises Forecasts

Analysts have been bumping up their estimates. The consensus forecast for the current quarter stands at $1.88 per share, representing 13.9% growth. This estimate increased 5.3% over the past 30 days.

Full fiscal 2026 earnings estimates now sit at $8.41 per share, up 12.7% from the prior year. That projection rose 3.1% in the last month. For fiscal 2027, analysts expect $9.29 in earnings per share.

Revenue forecasts also moved higher. The current quarter estimate of $108.88 billion implies 14.2% growth. Fiscal 2026 revenue projections reach $461.12 billion, up 10.8% year-over-year. Fiscal 2027 revenue is expected to hit $494.55 billion.

Apple has now beaten consensus earnings estimates for four consecutive quarters. The company also topped revenue expectations in each of those periods.

Valuation Debate Continues

The stock trades at a price-to-earnings ratio of 33.1. Some market watchers question whether this multiple leaves room for upside. With an annualized profit base of $168 billion in Q1, maintaining double-digit earnings growth presents challenges.

Concerns exist around Apple’s artificial intelligence strategy. The company has taken a cautious approach compared to competitors. Delayed Siri updates haven’t helped sentiment.

Zacks Investment Research gives the stock a Value Style Score of F, indicating shares trade at a premium to peers. However, Zacks also assigns a Rank #2 Buy rating based on upward earnings estimate revisions.

Over the past month, Apple shares returned 0.1% while the S&P 500 declined 1.7%. The stock trades below its 52-week high of $288.62 but well above its low of $169.21.

The company’s market cap stands at $3.8 trillion. Current dividend yield is 0.41%. Average daily volume runs around 49 million shares.

Apple stock closed at $255.98 on February 13, 2026.

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