BofA expects Apple to top analyst expectations on July 30

Investing.com -- Bank of America reiterated a Buy rating on Apple with a price target of $380 per share in a note on Monday, expecting the company to beat consensus in its fiscal third-quarter results, which will mark Tim Cook's last earnings call as CEO.

Analyst Wamsi Mohan told investors that investor focus heading into the July 30 earnings report will center on component cost inflation, gross margin durability, and Cook's departure.

The firm modeled fiscal third-quarter revenue and EPS of $109 billion and $1.89, ahead of Street estimates of $108 billion and $1.87, representing 16% year-over-year revenue growth versus Apple's guidance of 14-17%.

BofA has incorporated a more conservative overall outlook given "the staggered launch of iPhones," with Pro, Pro Max and Fold models launching in September and the base model and Air arriving in March.

The firm expects product gross margins to decline sequentially in the June and September quarters before recovering to 38.5% in the December quarter as new iPhones launch at higher prices, calling the near-term pressure "transitory."

On Services, BofA modeled 14% year-over-year revenue growth for the third quarter, noting App Store revenue growth has slowed to 3.2% year-over-year from 9.8% in the prior quarter, though it expects this to be offset by strength in iCloud and Licensing.

BofA also cautioned that the staggered iPhone launch cadence "can cause some volatility" in the second half of calendar 2026, modeling fourth-quarter revenue and EPS of $106 billion and $1.88, below Street estimates of $114 billion and $2.01.

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