"Morgan Stanley describes Q2 2026 as a 'clean' report, highlighting a 'remarkable' Q3 margin outlook and expressing confidence in Apple's ability to manage record cost inflation. They believe Apple is in a product cycle with 'upside optionality' from its developer ecosystem."
"Wells Fargo notes 'better-than-feared results and guide,' with Apple's revenue and gross margin guidance exceeding Street estimates by 5% and 50 basis points. They anticipate continued focus on Apple's management of memory and storage inflation in the latter half of 2026."
"Barclays acknowledges Apple's Q2 as solid, calling the Q3 growth guidance of 14% to 17% year-over-year 'very strong,' but raises concerns about risks to second-half estimates. They seek more clarity on Apple's artificial intelligence monetization strategy before becoming more positive on AAPL stock."
Apple's fiscal Q2 2026 results showed revenue of $111.18 billion, a 17% year-over-year increase, and EPS of $2.01. Analysts reacted differently, with Morgan Stanley raising its price target to $330, Wells Fargo to $310, and Barclays to $253. The debate centers on the sustainability of growth driven by the iPhone 17 cycle and revenue guidance of 14% to 17%. Morgan Stanley views the report positively, while Barclays expresses caution regarding AI monetization strategies.
Read at 24/7 Wall St.
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