BofA sees bullish setup into earnings for Apple stock

Investing.com -- Bank of America said Apple is heading into its fiscal first-quarter earnings with a “bullish setup,” citing stronger-than-expected iPhone demand, double-digit services growth and several product catalysts later in the year.

The firm reiterated its Buy rating and $325 price target on the stock, saying it sees “upside to Street estimates” when Apple reports on Jan. 29.

Analysts led by Wamsi Mohan expect revenue and earnings slightly ahead of consensus, modelling $140 billion in revenue and $2.69 in EPS, compared with the Street’s $138 billion and $2.67.

BofA forecasts revenue growth of 13% year over year, above Apple’s 10% to 12% guidance.

The bank added: “We see iPhone demand remaining strong… and Services revs continuing double-digit y/y growth despite weaker App store sales in China.”

Mohan cited two major catalysts for 2026, including the launch of a foldable iPhone in the autumn and an enhanced Siri integrated with Gemini AI, which he said “can drive higher upgrades.”

The analyst also expects margins to improve in the March quarter on a higher mix of services, projecting a gross margin range of 47.5% to 48.5%.

BofA raised its iPhone unit estimates for the December quarter to 85 million, saying demand for the iPhone 17 remains robust.

“We model iPhone revs… growing 17% y/y, which implies one of the strongest quarters ever for iPhone,” the bank’s analysts wrote.

Apple’s recent underperformance, driven by concerns over memory costs, is seen as temporary.

BofA argued that the company has levers to offset these pressures and remains “underweight in investor portfolios,” a trend it expects to reverse this year.

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