Apple is scheduled to report fiscal first-quarter earnings on Thursday, capping off a week of blockbuster tech success.
With AI already front and center for investors and analysts, Apple’s strategy is expected to come under close scrutiny, with Meta, Microsoft and Tesla set to release reports on Wednesday.
All eyes will be on Apple’s AI strategy announced after the market closes on Thursday.
Until now, the company has largely avoided the huge capital expenditures that other mega-sized companies have invested in AI infrastructure. Instead, it wants to partner with established AI players, and recently announced a partnership with Google’s Gemini to power its voice assistant Siri.
Apple’s stock price has risen about 10% over the past 12 months, lagging the broader market and some of its Magnificent Seven peers. Shares fell about 1% on Wednesday to about $255.
Wall Street expects Apple to report revenue of $138.4 billion and earnings of $2.68 per share for the quarter.
Here’s what top analysts are saying about the stock leading up to this report, and what they’re saying about what to watch for when the $3.7 trillion company releases its report on Thursday afternoon.
Wedbush: ‘AI premium’ could soon be priced in
Technology analyst Dan Ives said he would look for updates on Apple’s AI strategy.
“Having finalized the selection of Google Gemini to assist Siri in driving its AI strategy, now is the time for Apple to develop a blueprint for accelerating its AI strategy in 2026, leading to the long-awaited Siri refresh and WWDC in June,” Ives said in a client note on Wednesday, referring to the Worldwide Developers Conference.
He believes the stock could rise significantly if investors start applying an AI premium, similar to other companies touting their involvement in fast-growing technology.
“We believe that the ‘AI premium’, which could be worth $75 to $100 per share at current prices, is not priced into Apple stock,” Ives wrote.
Goldman Sachs: “It’s a good time to buy”
Analyst Michael Ng said Apple will report near-consensus earnings on Thursday, but the stock will rise as the market soon starts to move towards the company’s AI strategy.
Ng’s price target is $320 per share, about 25% upside from current levels.
“While AAPL stock is down 5% year-to-date heading into the start of C2026, likely due to higher commodity costs and App Store concerns, we view the stock’s weakness as a buying opportunity as the iPhone refresh cycle continues,” Ng said in a Jan. 20 note.
“Apple’s partnership with Google Gemini on Siri and the continued growth in iPhone demand on the back of the launch of AI-native consumer hardware should eliminate competition-related overhangs and demonstrate to the market that the iPhone remains the consumer device for accessing new AI tools.”
Morgan Stanley: AI and foldable iPhones will ultimately drive stock prices higher
Analyst Eric Woodring said he thinks investors will be underwhelmed by iPhone sales and expects the stock to move weakly after Thursday’s earnings call.
But he remains bullish on the stock over the next year, with a price target of $315 per share.
“Beyond the near-term outlook, we continue to believe that Apple will outperform in 2026 as it relaunches upgraded Siri/Apple Intelligence (February 2026, WWDC 2026 in June), unveils its most innovative iPhone in over a decade (foldable), and brings 2nm-powered smartphones to market for the first time (iPhone 18 family),” Woodring wrote in a client note on Monday.
UBS: Pay attention to rising memory costs
The bank said iPhone sales should remain strong, but “the rise in memory costs will likely take a backseat.”
“Despite supply agreements that are likely to cushion the impact of rising memory costs in our outlook for the March quarter, there is increased risk in the June and September quarters as production of next-generation iPhones increases, impacting costs and margins,” UBS said in a Jan. 20 note.
SWBC: likely to weaken in the future
Chris Brigati, chief investment officer at SWBC, said Apple’s AI strategy will come under increased scrutiny and there is a risk that investors will not be satisfied with the company’s updated approach.
“The underlying tone of Magnificent 7’s earnings report this week should be solid, but not evenly distributed across the group,” Brigati said in an email Wednesday. “But Apple faces the toughest hurdle. After a series of upward estimate revisions, it is the company most likely to have the hardest time clearing this hurdle, especially as investors question the company’s AI strategy.”
