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Headquartered in Cupertino, California, Apple Inc. (AAPL) is a global technology and consumer electronics leader. With a market cap of $3.6 trillion, Apple revolutionizes the digital experience through its innovative hardware, software, and services. The company’s extensive product ecosystem includes the iPhone, Mac, iPad, and wearables, complemented by a robust services portfolio such as the App Store, iCloud, and Apple Music.
Shares of the mega-cap company have outperformed the broader market over the past year. The stock has returned 26.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23.3%. In 2025, AAPL stock is down 5.1%, while the SPX is up 3.2% on a YTD basis.
Zooming in further, Apple stock has also outpaced the Technology Select Sector SPDR Fund's (XLK) 15% rise over the past 52 weeks.
Apple’s outperformance over the past year has been driven by strong financial results, resilient demand, and continued expansion in high-margin services. Its capital return program, ecosystem strength, and innovation in AI and emerging technologies have further reinforced investor confidence and long-term growth prospects.
Apple reported its fiscal Q1 earnings on Jan. 30. The company posted quarterly revenue of $124.3 billion, reflecting a 4% year-over-year increase. Earnings per share came in at $2.40, marking a 10% rise from the prior-year period.
Profitability metrics remained strong, with the gross margin expanding to 46.9%, up from 45.9% in the same quarter last year, while the operating margin held steady at 34.5%. However, the free cash flow margin declined to 21.7% from 31.4% in the prior year quarter, indicating a shift in cash flow dynamics.
For the current fiscal year ending in September 2025, analysts expect AAPL's EPS to grow 13.5% year-over-year to $8.33 per share. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
Among the 36 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, five “Moderate Buys,” 11 “Holds,” one “Moderate Sell,” and three “Strong Sells.”
This configuration is less bullish than three months ago when 19 analysts suggested a “Strong Buy” rating on the stock.
On Jan. 27, Barton Crockett from Rosenblatt Securities maintained a “Buy” rating on Apple with a price target of $262, implying a 10.3% upside from current levels.
The mean price target of $241.94 represents a premium of just 1.8% to AAPL's current levels. The Street-high price target of $325 implies a potential upside of 36.8% from the current price levels.
