Apple (AAPL) stock is down about 5% year-to-date due to concerns about higher input costs, tariffs, and the impact of macro uncertainty on consumer spending. Nonetheless, ahead of Apple’s Q2 FY26 earnings, AAPL bulls are optimistic about the stock, citing several positives, including a loyal iPhone customer base and innovative offerings like the new MacBook Neo. On Tuesday, top Bank of America analyst Wamsi Mohan reiterated a Buy rating on AAPL stock and raised his price target to $325 from $320.

Mohan expects the company to report solid results, driven by strength in iPhone sales and the Services business.

Meanwhile, Wall Street expects Apple to report EPS (earnings per share) of $1.93, reflecting 17% year-over-year growth. Revenue is projected to rise 14.2% to $108.86 billion.

Mohan expects Apple’s Q2 results to surpass the Street’s estimates, backed by continued strength in iPhone sales, double-digit growth in Services revenue, and favorable forex changes.

The 5-star analyst also highlighted upcoming catalysts, including an expected new buyback authorization, the WWDC event in June, and the launch of a foldable iPhone in the fall. He also mentioned the launch of an enhanced Siri with integrated Gemini AI, which could drive further upgrades.

Additionally, Mohan raised his iPhone units estimate for Q2 FY26 to 60 million. Despite global App store sales being relatively weak (up 7% year-over-year in Q2), the analyst expects Services revenue growth of 14% year-over-year, in line with the growth seen in the December quarter and the company’s guidance. Mohan expects Apple to report Q2 FY26 revenue, EPS, and gross margin of $113 billion, $2.00, and 48.2%, respectively.

Looking ahead, Mohan expects Apple to report sequentially lower margins in Q3 FY26 due to an unfavorable mix and higher component costs. He expects Apple to guide Q3 FY26 revenue growth of 10% to 15% (year-over-year) and EPS of $1.82. Mohan’s Q3 revenue and EPS expectations are higher than the Street’s estimates.

Heading into Q2 FY26 earnings, Wall Street has a Moderate Buy consensus rating on Apple stock, based on 14 Buys, eight Holds, and one Sell recommendation. The average AAPL stock price target of $304.84 indicates about 18% upside potential.

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