Apple (AAPL) stock has staged an impressive comeback after a sluggish start to 2025. Over the past six months, shares have surged 37.9%, recently reaching a record high of $288.62 on Dec. 3, and outperforming the S&P 500 Index’s ($SPX) roughly 14% gain. Surprisingly, Apple has also outpaced tech powerhouses like Meta (META), Amazon (AMZN), and Nvidia (NVDA) during the same period.

The upward swing began in late summer and has been driven by a series of favorable developments. One notable win came when Apple received temporary tariff relief on iPhones manufactured outside the U.S. The exemption allows the company to avoid price increases on affected models despite broader import duties, helping Apple protect demand during a crucial upgrade cycle.

Meanwhile, enthusiasm for the iPhone 17 lineup has played a significant role in the rebound. Strong consumer demand has bolstered expectations for the company’s crucial holiday quarter, while continued growth in Apple’s high-margin Services segment adds steady revenue beyond hardware upgrades.

With fresh hardware momentum and expanding Services strength, Apple is well-positioned to deliver solid growth in 2026.  

Apple to See an Acceleration in Growth

Apple is entering a period of significant growth, supported by strong demand for its core products and a services business that continues to scale. The company delivered record results for the September quarter with sales rising 8% to $102.5 billion. Notably, Apple expects the momentum to continue through the December quarter, projecting year-over-year revenue growth of 10% to 12%.

The growth momentum is expected to sustain into 2026 as well. Apple has refreshed nearly every major product category, creating what may be its most compelling device ecosystem to date. The iPhone 17 lineup could continue to drive a significant device upgrade trend. The next-generation AirPods Pro and an expanded Apple Watch lineup will add to the momentum, while MacBook Pro and iPad Pro models powered by the M5 chip aim to strengthen Apple’s position in high-performance computing.

The iPhone continues to be Apple’s key revenue driver, and its recent performance reflects that strength. In the September quarter, iPhone sales reached a record $49 billion, up 6% year-over-year. Demand from new and existing users helped push the active installed base of iPhones to an all-time high. With management targeting double-digit iPhone revenue growth during the holiday season, the company appears well-positioned for its highest-ever iPhone sales quarter. Further, the upgrade cycle could continue to boost the segment’s sales in 2026 as well.

Apple’s Mac business also delivered a solid end to the fiscal year, with revenue rising 13% to $8.7 billion thanks largely to the ongoing popularity of the MacBook Air. Growth in that category may cool in the current quarter due to a tougher comparison against last year’s major hardware refresh. Yet, any short-term softness in Macs should be comfortably offset by strength across iPhone and Services.

That Services segment remains a solid growth engine for the company. Revenue in the segment jumped 15% to an all-time high of $28.8 billion in Q4, supported by growth in the App Store, advertising, cloud, Music, and video, along with rising engagement from both paying and transactional users. With Apple’s global footprint widening and more customers entering its ecosystem, the Services segment will sustain the momentum in 2026.

Overall, solid demand for its devices, record installed user base, and growing enterprise adoption position Apple to deliver strong growth in 2026. Its ability to monetize both hardware and digital services continues to set the stage for accelerated growth.

Is AAPL Stock Buy, Sell, or Hold?

Apple is set to deliver strong growth led by a refreshed product base, strong brand, and loyal customer base. However, Apple’s valuation is a concern. AAPL stock currently trades at 34.3 times forward earnings, a premium multiple relative to the earnings growth forecast. Analysts expect earnings to grow by 8.9% in fiscal 2026 and 11.8% in 2027, suggesting that positives are priced into AAPL stock.

Given valuation concerns, not all analysts are endorsing AAPL stock, and the consensus rating is “Moderate Buy.” While Apple still has strong fundamentals and long-term potential, the elevated valuation could limit short-term gains. Investors may want to wait for a better entry point if the stock pulls back.

On the date of publication,
Amit Singh
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.
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