The recent weakness in Apple’s (AAPL) shares — down seven weeks in a row — is a “buying opportunity” ahead of the iPhone creator’s quarterly earnings, Goldman Sachs said.
Goldman Sachs analyst Michael Ng said he expects Apple to earn $2.66 per share for the coming quarter, with iPhone revenue estimated to grow 13% year-over-year and shipments up 5% over the same time frame, including 26% growth in China. Ng has a Buy rating and a $320 price target on Apple.
“iPhone demand in the next 2 years is likely to benefit from the iPhone Fold (Fall 2026, 4.5/25.4M units in F2026/F2027), the shift to a biannual iPhone launch cycle with the iPhone 18 base and iPhone Air 2 delayed from Fall 2026 to Spring 2027, and new software upgrades with iOS and Siri 2.0,” Ng wrote in a note to clients. “Although App Store spending decelerated again in F1Q26E to +7% [year-over-year], Services revenue growth (GSe: +14% [year-over-year]) should be supported by momentum in other categories (e.g., TAC, iCloud+, AppleCare+) with further tailwinds in F2026 from new ad formats in the App Store.”
Ng added the price and mix growth of Apple’s products and the continued shift towards services should help boost gross margins, even if memory costs rise. Additionally, the company’s partnership with Google (GOOG) (GOOGL) for Siri and continued iPhone demand ”should demonstrate to the market that the iPhone will remain the consumer device of choice for accessing new AI tools, clearing overhangs related to competition.”