Apple is set to report fiscal fourth-quarter earnings results after the market close on Thursday.
Wall Street anticipates $94.36 billion in revenue and adjusted earnings per share of $1.60.
Analysts predict mixed results and want to see if AI features will boost future iPhone demand.
All eyes are on Apple, the world’s largest company by market value, as it prepares to report its fiscal fourth-quarter results after the market closes on Thursday.
The quarter, which ended September 30, will encapsulate two weeks of Apple’s iPhone 16 sales.
The stock was trading at $230.40 at 1:50 p.m. ET, down by about 1.4%.
Here’s what Wall Street expects Apple to report for its fiscal fourth-quarter, according to Bloomberg data:
Wall Street will largely be looking to the company’s guidance for the upcoming holiday months, which has historically represented Apple’s strongest quarter.
Top of mind for analysts who cover the stock is whether Apple’s AI efforts will pay off and fuel demand for the iPhone 16, or if consumers are taking a wait-and-see approach.
The company released its first round of “Apple Intelligence” features this week, about six weeks after the release of the iPhone 16. Meanwhile, Apple’s core AI features aren’t expected to be released for the iPhone until early next year.
Here’s what Wall Street is looking for in Apple’s upcoming earnings report.
With some conflicting views on Wall Street about iPhone 16 demand in recent weeks, Bank of America said investors should “look past the iPhone 16 noise to impact of Apple Intelligence.”
“Contrary to every cycle where all the hardware/software functionality is more or less static through the course of the cycle, we view the cycle as more dynamic with more material software updates that increases the value to the user,” Bank of America analyst Wasmi Mohan said in a note last week.
Mohan said iPhone demand to pick up over the next few months as Apple’s AI features become more robust and expects the company to sell 80 million iPhone units during the holiday season.
Mohan is encouraged by a slightly higher average selling price for iPhones as consumers overwhelmingly continue to gravitate towards the more expensive Pro models.
Bank of America rates Apple at “Buy” with a $256 price target.
JPMorgan expects Apple to report a strong fourth-quarter earnings report that will likely beat revenue and profit estimates but that it will also disappoint with weaker-than-expected guidance for the holiday quarter.
