Wall Street Lifts Targets After Apple’s $102.5 B Beat

Apple just wrapped up its fourth quarter of 2025, and the numbers tell an interesting story. 

If you're holding $AAPL ( ▼ 3.21% ) or thinking about it, here's what happened.

Apple brought in $102.5 billion in revenue for the quarter, up 8% YoY.

That's a September quarter record. 

The company earned $1.85 per share, which beat what most analysts expected.

Think of it this way: for the full year, Apple hit $416 billion in total revenue.

That's bigger than the GDP of many countries.

YTD Return: 8.52% 
Market Cap: $4.03T
P/E Ratio: 41.28
Dividend Yield: 0.38%

That P/E ratio matters. 

It's 76% above Apple's 10-year average. 

This means investors are paying more for each dollar of earnings than they used to. Why? 

They're betting on growth.

iPhone revenue came in at $49.03 billion, up 6% from last year.  

But here's the catch. 

Analysts wanted $50.19 billion. Apple $AAPL missed that target by a bit.

But CEO Tim Cook wasn't worried. He told CNBC the reception for the iPhone 17 was "off the chart." 

The company couldn't make enough phones to meet demand during the quarter.

After earnings, several big banks raised their price targets. 

Bank of America stayed bullish with a buy rating. 

They see Apple's earnings growing in the mid-teens through 2030, with better iPhone upgrades and higher profit margins.

JPMorgan raised their target to $305. 

They're betting on the momentum from the new product cycle, which they think will continue with the iPhone 18 series.

Morgan Stanley also went to $305. 

They noted "iPhone growth is accelerating, Services is outperforming, and Apple is protecting profit margins better than expected."

Citigroup jumped to $315. 

Their analyst Atif Malik pointed out that Apple's guidance for the December quarter beat expectations, and China sales should turn positive.

Wedbush kept their target at $310. 

They wrote that Apple "found success with iPhone 17" and AI features could add another $75 to $100 to the share price in coming years.

Here's something you may miss: Apple's services business grew 15% to nearly $25 billion.

Services include things like iCloud storage, Apple Music, App Store fees, and AppleCare.

This matters because services bring in recurring revenue with better profit margins than selling hardware. 

Tim Cook said most components of the Services business were seeing accelerating growth.

China remains a sore spot. Apple’s sales declined in China.

Revenue came in at $14.5 billion, down from $15 billion last year and below the $16.4 billion analysts expected.

But Cook sees this turning around. 

He's confident China will return to growth in the December quarter.

Tim Cook expects the December quarter to be "the best ever in the history of the company." 

That's a bold claim, but Apple has momentum heading into the holidays.

The company just launched the iPhone 17 lineup in September. 

The new phones include design improvements and Apple introduced the iPhone Air, a thinner model replacing the iPhone Plus.

Tim Cook was proud to announce the September quarter revenue record, noting it included records for both iPhone and Services. 

He emphasized the company launched "our best iPhone lineup ever" heading into the holiday season.

On tariffs, Cook said Apple absorbed $1.1 billion in tariff costs during the quarter and expects $1.4 billion in the December quarter. 

Apple didn't raise prices.

Apple beat expectations but not by a huge margin. 

The real story is about what comes next. 

With strong holiday guidance and Wall Street raising price targets, most analysts think $APPL has room to run.

The Services business continues to shine. 

The P/E ratio sits well above historical averages. 

But if the company delivers on Cook's promises for the holiday quarter, that premium might be justified.

If you’re looking at Apple, think about this: it's not just a phone company anymore.

Services revenue hit a record. 

The install base keeps growing. Apple is investing heavily in AI features that could drive the next upgrade cycle.

The question isn't whether Apple is a good company. It clearly is. 

The question is whether the current price offers good value. 

That depends on whether you believe in Apple’s growth story.

Disclaimer: This is not financial or investment advice. Do your own research and consult a qualified financial advisor before investing.

Trader Insights Media tracks thousands of companies every week using rigorous financial analysis.

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