Apple Earnings Outlook
Apple Inc. (NASDAQ: AAPL) faces challenges in maintaining its earnings growth, with analysts projecting a compound annual growth rate (CAGR) of 11.4% for diluted earnings per share (EPS) between fiscal 2025 and fiscal 2028. Currently, the company’s EPS rose 6.9% during fiscal 2022 through fiscal 2025. For the first quarter of fiscal 2026, ending December 27, 2025, Apple reported a revenue increase of 15.7% year-over-year, thanks in part to a 23.4% rise in iPhone sales, leading to an 18.3% increase in diluted EPS.
Despite impressive growth, Apple shares remain 11% below their December 2022 record, with a price-to-earnings (P/E) ratio of 32.2. Analysts suggest that for Apple’s share price to potentially reach $500 by 2031, market sentiment must improve, which might require an expansion of its current valuation multiple. However, the prevailing concern is that if growth decelerates, the P/E ratio might decrease, posing risks to the investment thesis, with future EPS growth likely to be in the high-single to low-double-digit range.
Investors are advised to exercise caution, as current market sentiment could further impact investment decisions. Notably, a recent analyst report identified ten stocks that may yield higher returns than Apple.
