This article first appeared on GuruFocus.

Apple (NASDAQ:AAPL) is set to report Q1 earnings on Jan. 29, and investors are watching closely for signs the iPhone maker can translate AI momentum into higher-margin services.

The company has pushed services revenue and AI integration as key growth drivers. Traders will parse whether services can offset softer hardware demand in a potentially choppy macro backdrop.

Analysts expect about 11% year-over-year revenue growth for the quarter, and many saw services surpassing $100 billion for full fiscal 2025, metrics that could support a re-rating if repeated.

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In simple terms, Wall Street expects revenue of $138.4 billion and EPS at around $2.67 per share.

On a valuation basis, at current multiples, Apple trades at elevated valuations, roughly 31 times forward earnings, which leaves little room for disappointing guidance or weaker-than-expected demand.

Options traders are pricing Apple for roughly a 5% swing around its Jan. 29 earnings, making it the likeliest big mover on earnings day.

For investors, near-term risks center on macro sensitivity and whether Apple can turn AI feature announcements into clear monetization, with specifics still scarce, expectations hinge on guidance rather than immediate revenue.

The next earnings call should reveal if AAPL can sustain its premium multiple or faces a pullback

Based on the one year price targets offered by 44 analysts, the average target price for Apple Inc is $285.59 with a high estimate of $350.00 and a low estimate of $215.00. The average target implies a upside of +15.14% from the current price of $248.04.

Based on GuruFocus estimates, the estimated GF Value for Apple Inc in one year is $244.80, suggesting a downside of -1.31% from the current price of $248.04. gf value is gurufocus’ estimate of the fair value that the stock should be traded at. it is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.