"Q2 FY26 delivered: revenue of $111.18 billion, up 16.6% year over year, with EPS of $2.01 beating consensus by 3.61%. CEO Tim Cook called it "best March quarter ever, with...double-digit growth across every geographic segment.""
"The growth picture has inflected. iPhone revenue jumped to $56.99 billion from $46.84 billion, Services hit an all-time record $30.98 billion, and Greater China rebounded to $20.50 billion, removing the biggest overhang."
"Valuation is the loudest objection. Apple trades at 34x trailing earnings and 32x forward, with a PEG of 2.5, well above historical norms. iPhone still drives over half of revenue, supply chains remain China-heavy, and tariff policy is a live wire."
"A wait-and-see stance is defensible. Consensus implies only 6.8% upside to the analyst target, and forward P/E is rich for a company that grew FY25 revenue 6.43%. The trigger for re-evaluation is the September q"
Apple is trading around $284 after posting its best March quarter ever, with revenue of $111.18 billion up 16.6% year over year and EPS of $2.01 beating consensus. iPhone revenue rose to $56.99 billion, Services reached an all-time record $30.98 billion, and Greater China rebounded to $20.50 billion. Bulls cite improving growth, analyst support with 32 Buy/Strong Buy ratings versus 2 Sell, and a $342 target with 20.35% upside. Capital return adds support through a $100 billion buyback authorization and a 4% dividend hike. Bears point to valuation at 34x trailing and 32x forward earnings, a PEG of 2.5, China exposure, tariff risk, and caution from price proximity to the 52-week high and net insider selling.
Read at 24/7 Wall St.
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